Amortization Schedule Calculator
Create a full month-by-month amortization schedule showing how each loan payment splits between principal and interest.
What an amortization schedule shows
An amortization schedule is a table listing every payment on a loan. For each month it shows how much goes to interest, how much reduces the principal, and the balance left afterwards. Lenders must provide one on request, but most borrowers never look at it, which is a pity: it explains why early extra payments are so powerful and why refinancing late in a loan rarely saves much.
How each row is calculated
Interest = Balance × (annual rate ÷ 12) Principal = Payment − Interest New balance = Balance − Principal
The payment itself stays the same every month and comes from the standard formula P × r ÷ (1 − (1 + r)^−n). Because interest is charged on a shrinking balance, the interest part of each payment falls a little every month while the principal part grows by the same amount.
Example: $250,000 at 6.75% for 30 years
The monthly payment is $1,621.50. In month one, interest is $250,000 × 0.005625 = $1,406.25, so only $215.25 reduces the balance. Over 30 years you pay about $333,700 in interest. It takes 259 payments, more than 21 years, before half of the original loan is repaid.
How to use the schedule
- Plan extra payments. Any extra money skips the interest column and goes straight to principal. Use the mortgage payoff calculator to see the exact savings.
- Check your statement. Compare your lender's numbers with the schedule to catch errors or misapplied payments.
- Decide when to sell or refinance. The balance column shows how much equity you will have built by a given date.
- Taxes. In the US, mortgage interest may be deductible if you itemize. The schedule shows how much interest you pay each year.
Frequently asked questions
What is an amortization schedule?
It is a table of every loan payment showing the interest portion, the principal portion and the remaining balance after each payment.
Why does so little of my early payment reduce the balance?
Interest is charged on the outstanding balance, which is largest at the start. As the balance falls, interest shrinks and more of each payment goes to principal.
Does an amortization schedule include taxes and insurance?
No. It covers principal and interest only. Escrow amounts for property tax and insurance are added on top by your lender.
Last reviewed Oct 20, 2026. Results are estimates; check important decisions with a qualified professional.