Amortization Calculator
See how your loan balance changes over time. This calculator shows you exactly how much of each payment goes toward principal and interest.
Monthly Payment
$0.00
Principal & Interest
Loan Summary
Total Payments:
$0.00
Total Interest:
$0.00
Payoff Date:
N/A
Year 1 Breakdown
Principal Paid:
$0.00
Interest Paid:
$0.00
Ending Balance:
$0.00
Amortization Schedule
Enter loan details and click "Calculate" to view the amortization schedule
Understanding Amortization
Amortization is the process of paying off a loan over time through regular payments. Each payment consists of two parts: principal and interest.
How Amortization Works
- Early Payments: Most of your payment goes toward interest, with only a small portion reducing the principal balance.
- Middle Period: The payment splits more evenly between principal and interest.
- Later Payments: Most of your payment goes toward principal, with less going to interest.
- Extra Payments: Any additional payments you make go directly toward reducing the principal balance.
Benefits of Understanding Amortization
Knowing how amortization works can help you:
- Make informed decisions about extra payments
- Understand the true cost of borrowing
- Plan your financial future more effectively
- Compare different loan options
Pro Tip: Making extra payments early in the loan term saves you the most money in interest because you're reducing the principal balance when interest rates are highest.