Amortization Calculator
Generate a full loan payment schedule showing principal, interest and balance every month
// Extra Monthly Payment (optional)
// Extra Payment Savings
// Principal vs Interest Per Year
Full Amortization Schedule
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 📊 Calculate above to generate your schedule | ||||
What Is an Amortization Schedule?
An amortization schedule is a complete table of periodic loan payments showing the amount of each payment that goes toward principal and interest, along with the remaining balance after each payment. It shows you exactly how your loan is paid off over time.
How Amortization Works
In the early months of a loan, most of your payment goes toward interest because the outstanding balance is high. As you pay down the principal, the interest portion shrinks and more of each payment goes toward reducing what you owe. This is why the total interest on a 30-year mortgage can exceed the original loan amount.
The Power of Extra Payments
Making even small extra payments each month can dramatically reduce the total interest paid and shorten your loan term. On a £200,000 mortgage at 6.5% over 30 years, paying an extra £200 per month saves over £60,000 in interest and pays the loan off 7 years early. Use the Extra Payment field above to see the impact for your loan.
Why Does Interest Front-Load?
Interest is charged on the outstanding balance each period. Since the balance is highest at the start of the loan, so is the interest. As principal is paid down, the balance falls and interest charges decrease — this is why early payments feel like they make little dent in the balance.
// Pay Extra Early
Extra payments made early in the loan term save the most interest — the earlier, the higher the remaining balance they reduce.
// Bi-Weekly Trick
Paying half your monthly payment every two weeks results in one extra full payment per year, shaving years off a mortgage.
// Refinancing
If rates drop significantly, refinancing resets your amortization. Run both scenarios to see if the savings outweigh closing costs.
// Lump Sums
Tax refunds, bonuses, or windfalls applied directly to principal can save substantial interest over the life of a loan.