PmtCalcHow amortization works
Each month, interest is charged on the balance you still owe: balance × annual rate ÷ 12. Whatever is left of your fixed payment reduces the principal. Because the balance shrinks every month, the interest portion shrinks too, and more of each payment goes to principal. On a long mortgage the switch is dramatic: the first payments are mostly interest, and the last ones are almost all principal.
Example
On a $300,000, 30-year loan at 6.5%, the payment is $1,896.20. In the first payment, $1,625.00 is interest and only $271.20 is principal. Principal does not exceed interest until year 20, and over the full term you pay $382,636.71 in interest.
Frequently asked questions
What is an amortization schedule?
A table listing every scheduled payment on a loan, split into interest and principal, with the remaining balance after each payment.
Why does the last payment differ slightly?
Payments are rounded to the cent, so tiny differences build up over the term. The final payment is adjusted to bring the balance to exactly zero, the same way lenders handle it.
How do extra payments change the schedule?
Extra principal lowers the balance sooner, so every later payment carries less interest and the loan ends early. Use the extra payment calculator to see the new schedule.
Can I print the schedule?
Yes. Open the schedule and use your browser’s print command; the page prints in a clean format without navigation.
Sources
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