See the monthly payment, total interest and a year-by-year balance schedule for any loan.
How amortization is worked out
An amortization schedule shows how each payment splits between interest and principal, and how the balance falls over time. Enter the loan, rate and term to see the payment and a yearly breakdown.
Early payments are mostly interest; later ones mostly principal.
Step by step
- Enter the loan amount.
- Enter the interest rate and number of years.
- Read the payment and the yearly schedule.
Formula reference
payment = P × r ÷ (1 − (1+r)⁻ⁿ)
each month: interest = balance × r, rest reduces principal
The default scenario, worked through
Worked through, a loan amount of 200,000 produces a monthly payment of $1,199.1. Underneath, Total interest comes out at $231,676.38 and Total paid at $431,676.38. Change any field and every figure updates as you type.
Questions people ask about this
What is amortization?
Paying off a loan with equal payments where the split between interest and principal shifts over time as the balance shrinks.
Why is early interest so high?
Interest is charged on the outstanding balance, which is largest at the start — so early payments are mostly interest.
How do extra payments help?
Extra principal reduces the balance faster, cutting both the term and total interest. This tool shows the standard schedule.