Amortization Calculator

See exactly how each payment splits into principal and interest, and how extra payments shorten your loan

The total amount you're borrowing.

Your annual percentage rate (APR).

15-year vs 30-year dramatically changes interest paid.

Even $100/month extra can save tens of thousands in interest.

Monthly Payment $0
Total Interest (no extra) $0
Interest With Extra Payments $0
You Save With Extra $0
Payoff Time Shortened 0 yrs 0 mo

Payment Split Over Time

■ Principal   ■ Interest

First 12 Months of Payments

Month Payment Principal Interest Balance

What Is Amortization?

Amortization is the process of paying off a loan through regular, equal payments over a fixed term. Each payment has two parts: principal (the amount that reduces your loan balance) and interest (the cost of borrowing). Early in the loan, most of your payment goes toward interest; later, most goes toward principal.

Why an Amortization Schedule Matters

  • See the real cost — a $300,000 mortgage at 6.5% costs $382,000+ in interest over 30 years
  • Plan extra payments — extra $100/month saves ~$58,000 in interest and 6 years on a 6.5% mortgage
  • Understand equity — know how much of your home you actually own at any point
  • Compare loan offers — shorter terms cost more monthly but far less overall

Frequently Asked Questions

Should I make extra mortgage payments?

Generally yes, if you have no high-interest debt and a full emergency fund. Extra payments reduce principal directly, cutting both interest and loan term. However, if your mortgage rate is very low (under 4%), investing the extra money may earn more than the interest you'd save.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has a higher monthly payment but saves hundreds of thousands in interest. On a $300,000 loan at 6.5%, you'd pay about $173,000 in interest over 15 years versus $382,000 over 30 years. Choose based on your budget and other financial goals.

What is a good amortization period?

"Good" depends on your goals. The standard is 30 years for mortgages. If you can afford the higher payment, a 15-year term builds equity faster and saves significantly on interest. Longer terms mean lower payments but more total interest.