Amortization Calculator
Generate a complete amortization schedule for any loan — see exactly how much goes to principal vs interest each month, track your equity growth, and download a full PDF report.
SECTION A — LOAN DETAILS
SECTION B — TAXES & INSURANCE
How to Use
- 1Enter your loan amount, interest rate, and term — these are the three core inputs that drive the entire amortization schedule.
- 2Add your annual property tax and insurance to see your full monthly housing cost including PITI — these do not affect the amortization calculations.
- 3Toggle "Show Monthly Detail" to switch between the annual summary view and a full month-by-month breakdown of every payment.
- 4Download the PDF report to get a complete printed amortization schedule showing all years, equity milestones, and the principal vs interest crossover point.
Example Calculation
First 5 Years of Amortization
| Year | Beg. Balance | Principal | Interest | End. Balance |
|---|---|---|---|---|
| Yr 1 | $250,000.00 | $2,539.52 | $17,419.55 | $247,460.48 |
| Yr 2 | $247,460.48 | $2,723.11 | $17,235.97 | $244,737.37 |
| Yr 3 | $244,737.37 | $2,919.96 | $17,039.11 | $241,817.41 |
| Yr 4 | $241,817.41 | $3,131.04 | $16,828.03 | $238,686.36 |
| Yr 5 | $238,686.36 | $3,357.39 | $16,601.69 | $235,328.97 |
"In Year 1, only $2,539.52 of the $19,959.07 paid in P&I goes to principal — just 12.7%. By Year 21 the monthly principal portion finally exceeds the interest portion for the first time."
Frequently Asked Questions
Q1: What is an amortization schedule?
A1: An amortization schedule is a complete table showing every payment of a loan broken down into principal and interest components. For a 30-year mortgage, that is 360 monthly rows. Early payments are heavily weighted toward interest — on a $250,000 loan at 7%, only $2,539.52 of the first year's P&I goes to principal while $17,419.55 goes to interest. As the balance decreases, more of each payment goes to principal.
Q2: When does my monthly principal payment exceed my interest payment?
A2: On a $250,000 loan at 7% for 30 years, the principal portion of your monthly payment first exceeds the interest portion in Month 242 — Year 21 of the loan. Before that point, the majority of every payment goes to interest. This is why making extra principal payments early in the loan has such a large impact on total interest paid.
Q3: How is each monthly payment split between principal and interest?
A3: Each month, interest = outstanding balance × (annual rate / 12). The remainder of your fixed payment goes to principal. In Month 1 on a $250,000 loan at 7%, interest = $250,000 × 0.5833% = $1,458.33 and principal = $1,663.26 - $1,458.33 = $204.93. As the balance falls each month, interest shrinks slightly and principal grows — this is what creates the amortization curve.
Q4: Why does my balance decrease so slowly in the early years?
A4: In the first years of a 30-year mortgage, most of your payment covers interest. After 10 years of payments on a $250,000 loan at 7%, the balance is still $214,530.96 — only $35,469.04 has been paid off in principal. This front-loading of interest is a natural feature of fixed-rate amortization and explains why refinancing early or making extra principal payments can save significantly more than doing the same later in the loan term.
Q5: How does loan term affect the amortization schedule?
A5: A shorter term (15 years) dramatically changes the amortization curve. Monthly payments are higher because the same principal is repaid in half the time, but each payment contains far more principal from day one. On a $250,000 loan at 6.5% for 15 years, the monthly P&I is $2,178.42 — $515.16 more than the 30-year payment — but after 5 years the balance is only $198,161 versus $235,329 on the 30-year. Use the 15 vs 30 Year Mortgage Calculator to compare full scenarios.
This calculator provides estimates for informational purposes only. Actual amortization may vary slightly based on how your lender calculates daily interest and rounding. Consult your mortgage professional for an official statement.