Loan Amortization Calculator
Calculate monthly payments, total interest, and see a full amortization schedule. See exactly how extra payments save you money.
Parameters
Calculate your loan schedule
Monthly Payment
$ 0Standard 30-year term
Total Payment
$ 0Total Interest
$ 0Interest Saved
$ 0Time Saved
0 yrsPayment Breakdown
Loan Balance Over Time
Remaining balance and annual payments
Principal vs Interest Per Year
How each payment is split over time
Results are for informational purposes only and do not constitute financial advice. Actual returns may vary due to market conditions, taxes, and fees. Read our full disclaimer.
What is Loan Amortization?
Loan amortization is the process of paying off a debt through regular scheduled payments over time. Each payment covers both interest and principal. In the early years of a loan, the majority of each payment goes toward interest. As the loan balance decreases, more of each payment goes toward reducing the principal. This is why extra payments made early in a loan's life save the most interest.
How Compound Interest Works Against Borrowers
The same compound interest that builds wealth for investors works against borrowers. On a 30-year mortgage at 6.5%, you pay nearly as much in interest as you borrowed originally. A $300,000 mortgage at 6.5% over 30 years results in total payments of over $680,000 — more than double the loan amount. This is why understanding amortization is essential for any borrower.
The Power of Extra Payments
Making extra payments early in a loan's life dramatically reduces total interest paid because those extra dollars reduce the principal balance on which future interest is calculated. Even $100 per month extra on a 30-year mortgage can save tens of thousands of dollars in interest and cut years off the loan term. Use the extra payment field above to see the exact impact.