Amortization Calculator
Get a full repayment schedule and see how extra payments shorten your loan.
What an amortization schedule shows
Amortization is the process of paying a loan down in regular instalments. The schedule lists, for each period, how much of your payment is interest, how much reduces the balance, and what you still owe. Press the button under the result to see every month.
Why early payments are mostly interest
Interest is charged on the remaining balance. At the start the balance is at its highest, so interest takes the biggest share of each payment. As the balance falls, more of every payment goes to principal.
Example
A 250,000 loan at 6% over 30 years has a payment of about 1,498.88 and costs about 289,595 in interest in total. Adding 200 a month cuts the term to roughly 22 years and saves a large part of that interest.
Using extra payments well
- Check that your lender applies extra money to principal and does not charge an early repayment fee.
- Extra payments early in the loan save the most interest.
Frequently asked questions
What does amortization mean?
It means spreading a loan into scheduled payments that cover both interest and principal so the balance reaches zero by the end of the term.
Do extra payments really save that much?
They can. Because interest is charged on the balance, every extra amount you repay early stops interest on that money for the rest of the loan.
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