Amortization Calculator
See exactly how your payments break down between principal and interest over the life of your loan.
Amortization Schedule
Year-by-year breakdown of your principal and interest payments
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
|---|
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule shows how your loan payments are split between principal and interest over time. Early payments have more interest; later payments have more principal.
Why do early payments have more interest?
Interest is calculated on the remaining balance. When the balance is high at the start, interest charges are larger. As principal is paid down, interest charges decrease proportionally.
Can I pay off my loan early?
Yes, most loans allow extra principal payments without penalty. Paying extra principal reduces your balance faster, saves interest, and shortens your loan term.
How does loan term affect payments?
A longer loan term spreads payments over more months, lowering the monthly payment but increasing total interest paid. A shorter term means higher monthly payments but less total interest.
What's the difference between APR and interest rate?
The interest rate is the annual cost of borrowing. APR (Annual Percentage Rate) includes the interest rate plus other costs/fees, giving a more complete picture of the true cost.