Amortization Schedule Calculator

Amortization is the process of paying off a loan through regular scheduled payments over time. Each payment covers interest and principal. Early payments are mostly interest; later payments apply more to principal. An amortization schedule shows the breakdown of each payment throughout the loan term.

Extra payments can save significant interest. On a $300,000 mortgage at 6.5% over 30 years, adding $100 extra monthly saves approximately $47,000 in interest and pays off the loan 4 years early. Even small extra amounts compound over time because they reduce the principal balance faster.

Bi-weekly payments (half your monthly payment every two weeks) result in 26 half-payments per year—equivalent to 13 full monthly payments instead of 12. This pays off a 30-year mortgage about 4-5 years early and saves thousands in interest. Check if your lender charges fees for this service.

Most loans allow early payoff without penalty, but check your loan terms. Fixed-rate mortgages rarely have prepayment penalties. Auto loans and personal loans may have penalties in the first 1-3 years. Paying off early saves interest but consider if that money could earn higher returns elsewhere.

Most loans use simple interest calculated monthly: (Remaining Balance × Annual Rate) ÷ 12. As you pay down principal, the interest portion of each payment decreases. This is why early payments are mostly interest and later payments are mostly principal. Use this calculator to see the exact breakdown for your loan.