Amortization Calculator
See the full year-by-year principal and interest breakdown for any fixed-rate loan.
Try an example
$2,023
Remaining balance by year
| Year | Principal paid | Interest paid | End balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,694 |
| 10 | $6,410 | $17,861 | $271,284 |
| 11 | $6,839 | $17,432 | $264,444 |
| 12 | $7,297 | $16,974 | $257,147 |
| 13 | $7,786 | $16,485 | $249,361 |
| 14 | $8,308 | $15,964 | $241,053 |
| 15 | $8,864 | $15,407 | $232,189 |
| 16 | $9,458 | $14,814 | $222,732 |
| 17 | $10,091 | $14,180 | $212,641 |
| 18 | $10,767 | $13,505 | $201,874 |
| 19 | $11,488 | $12,784 | $190,386 |
| 20 | $12,257 | $12,014 | $178,129 |
| 21 | $13,078 | $11,193 | $165,051 |
| 22 | $13,954 | $10,317 | $151,097 |
| 23 | $14,888 | $9,383 | $136,208 |
| 24 | $15,886 | $8,386 | $120,323 |
| 25 | $16,949 | $7,322 | $103,373 |
| 26 | $18,085 | $6,187 | $85,289 |
| 27 | $19,296 | $4,976 | $65,993 |
| 28 | $20,588 | $3,683 | $45,405 |
| 29 | $21,967 | $2,305 | $23,438 |
| 30 | $23,438 | $833 | $0 |
About this calculator
What Is Amortization?
Amortization has two common meanings. In lending, it is the systematic repayment of a loan through scheduled payments over time. In accounting, it means spreading the cost of a long-lived asset, such as a patent or equipment, across the years it is used. This amortization calculator focuses on the first meaning: it builds a payment schedule for a loan so you can see, month by month and year by year, exactly where your money goes.
How an Amortization Schedule Works
Every payment on an amortized loan is the same size, but it is split into two parts. Interest is charged on the current balance, so the first payments are mostly interest and only a little principal. As the balance falls, the interest portion shrinks and more of each payment reduces the principal. The schedule lists, for every payment, the interest, the principal and the remaining balance until the loan reaches zero. The payment itself comes from M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1].
Why Look at the Schedule?
- See the real cost: adding up the interest column shows how much borrowing truly costs.
- Judge extra payments: paying a bit more toward principal early removes interest from every later month and can shorten the loan by years.
- Plan a refinance: the schedule shows how much equity you have built and how much interest you would avoid by changing the terms.
- Understand taxes: in some situations the interest portion is deductible, and the schedule shows how much that is each year.
Amortizing Loans vs. Other Loan Types
Mortgages, auto loans, student loans and personal loans usually amortize. Interest-only loans and balloon loans do not: they leave most or all of the principal due at the end. Credit cards are revolving credit, with no fixed schedule at all, so paying only the minimum can take a long time to clear a balance.
Amortization in Business Accounting
When a company buys an intangible asset with a long life — a patent, a license, a trademark — it records the cost gradually over the asset's useful life instead of all at once. Physical assets are handled the same way under the name depreciation; see the Depreciation Calculator.
Related Calculators
For a quick payment figure, use the Loan Calculator; for home purchases, the Mortgage Calculator; and for vehicles, the Auto Loan Calculator.
Worked example
A $320,000 loan at 6.5% over 30 years comes out to $2,023/month — the same math behind the Mortgage Calculator's default example. Early payments are mostly interest; by the later years, most of each payment goes to principal instead.
Frequently asked questions
Why does the interest portion shrink over time?
Interest is calculated on the remaining balance each month. As the balance shrinks, so does the interest charged, leaving a growing share of each fixed payment to pay down principal — this is normal for any fixed-rate amortizing loan.
Does this apply to any loan, not just mortgages?
Yes — any fixed-rate, fixed-term loan amortizes the same way, including auto loans, personal loans, and student loans.
What happens if I make an extra principal payment?
It reduces the balance immediately, which lowers the interest charged on every future payment — this table doesn't account for extra payments, so the real payoff would be faster than shown.
