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Calculation Machine

Amortization Calculator

Year-by-year split of principal versus interest on any loan.

Reviewed by the Calculation Machine team · How we check our maths

Your values

ⓘ Live results

Results
Monthly payment
$1,498.88
Total interest
$289,595.47
Total repaid
$539,595.47
YearPrincipal paidInterest paidBalance
1$3,070.03$14,916.49$246,929.97
2$3,259.38$14,727.13$243,670.59
3$3,460.41$14,526.10$240,210.18
4$3,673.84$14,312.67$236,536.33
5$3,900.44$14,086.08$232,635.89
6$4,141.01$13,845.51$228,494.88
7$4,396.42$13,590.10$224,098.46
8$4,667.58$13,318.94$219,430.89
9$4,955.47$13,031.05$214,475.42
10$5,261.11$12,725.41$209,214.31
11$5,585.60$12,400.91$203,628.71
12$5,930.11$12,056.41$197,698.60
13$6,295.87$11,690.65$191,402.74
14$6,684.18$11,302.34$184,718.56
15$7,096.45$10,890.07$177,622.11
16$7,534.14$10,452.38$170,087.97
17$7,998.83$9,987.69$162,089.14
18$8,492.18$9,494.34$153,596.97
19$9,015.96$8,970.56$144,581.01
20$9,572.04$8,414.47$135,008.97
21$10,162.42$7,824.09$124,846.54
22$10,789.22$7,197.29$114,057.32
23$11,454.68$6,531.84$102,602.64
24$12,161.18$5,825.34$90,441.47
25$12,911.25$5,075.27$77,530.22
26$13,707.59$4,278.93$63,822.63
27$14,553.04$3,433.47$49,269.59
28$15,450.64$2,535.87$33,818.95
29$16,403.60$1,582.91$17,415.34
30$17,415.34$571.17$0.00

Quick answer

An amortisation schedule shows how each payment splits between interest and principal, with interest shrinking as the balance falls.

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Loan amount250000 $
  • Interest rate6 %
  • Term30 years

Result

  • Monthly payment$1,498.88
  • Total interest$289,595.47
  • Total repaid$539,595.47

How to use the Amortization Calculator

  1. 1Enter the loan amount, rate and term.
  2. 2Read the monthly payment.
  3. 3Scan the yearly table to see the balance fall.

Frequently asked questions

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.

Do extra payments help?

Yes — any extra amount goes straight to principal and removes all the future interest that balance would have generated.

About this calculator

Why early loan payments are mostly interest

An amortised loan has a fixed monthly payment, but the split between interest and principal changes every month. Interest is charged on the remaining balance, so at the start most of the payment goes to interest. As the balance falls, more of each payment reduces the debt.

The schedule shows that split for every payment, the total interest over the loan and how much is still owed at any date.

Example

A $250,000 loan at 6.5% over 30 years has a payment of $1,580. In the first month, $1,354 is interest and only $226 reduces the balance. Over the full term, total interest is about $318,900.

Ways to pay less interest

  • Even small extra principal payments early in the loan save the most interest.
  • A 15-year term has a higher payment but usually less than half the total interest of a 30-year term.
  • Check whether your loan has prepayment penalties before overpaying.

Sources

More questions

What does amortization mean?

Paying off a debt in regular instalments that cover interest and principal over a set term.

Does paying biweekly help?

Paying half the monthly amount every two weeks makes 13 full payments a year, which shortens a 30-year loan by several years.