Amortization Calculator
See how much of a given payment is interest and what is still owed at that point.
Result
Interest in that payment: $1,625.00
The schedule assumes every payment arrives on time and in full and that the rate never changes. It shows one payment at a time.
- Principal in that payment
- $271.20
- Balance after that payment
- $299,728.80
- Interest paid to that point
- $1,625.00
- Principal repaid to that point
- $271.20
- Scheduled payment
- $1,896.20
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Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the Amortization Calculator
- Enter the original loan amount, rate and term.
- Choose which payment number you want to look at.
- Read the interest and principal split for that payment and the balance left after it.
Every payment is the same, but its parts are not
A level payment never changes, yet what it does changes completely over the life of a loan. Interest is charged on the outstanding balance, so when the balance is large the interest portion is large and very little principal is repaid. As the balance falls the interest shrinks, and because the payment is fixed, more of it goes to principal each period.
interest this period = balance × rprincipal this period = payment − interestnew balance = balance − principalThat is the whole schedule. Running those three lines forward from the original amount gives the split at any payment number.
The early years repay very little
On a 30-year loan at 6.5%, the first payment is roughly 86% interest. After a full year of payments the balance has fallen by about 1% of the original amount. This is not a trick or a penalty: it is what charging interest on a large balance produces, and the same arithmetic works in reverse at the end of the term, when almost every payment is principal.
It explains why selling or refinancing early recovers little equity, and why an extra payment made in year one removes far more interest than the same payment made in year twenty.
Interest is rounded every period
Interest is calculated on the balance and rounded to the cent each period, which is what a lender does. That keeps the entire schedule in whole cents and makes the balance shown here reconcilable with a real statement.
It also means the totals differ by a few cents from a figure calculated with an unrounded payment. The version shown is the one that matches a statement rather than the one that matches a textbook.
What the schedule assumes
Every payment arrives on time and in full, the rate never changes, nothing is added to the balance, and no extra is paid. A missed payment, a fee added to the balance, a rate change on an adjustable loan or a payment holiday all make the real schedule diverge from this one, usually in the direction of more interest.
To see what paying more would do instead, use the mortgage payoff calculator, which runs the same schedule twice and reports the difference.
With your numbers
- Payment 1 of 360, scheduled at $1,896.20
- Interest = balance × 0.5417% = $1,625.00
- Principal = $1,896.20 − $1,625.00 = $271.20, leaving $299,728.80
Quick reference
The schedule assumes every payment arrives on time and in full and that the rate never changes. It shows one payment at a time.
| Example | Interest in that payment |
|---|---|
| USD 300,000 at 6.5%, first payment | $1,625.00 |
| USD 300,000 at 6.5%, payment 12 | $1,608.40 |
| USD 300,000 at 6.5%, payment 180 | $1,182.96 |
| USD 300,000 at 6.5%, final payment | $10.24 |
| USD 32,000 car loan at 6%, payment 12 | $114.12 |
| USD 150,000 at 7% over 15 years, payment 60 | $681.25 |
| EUR 240,000 at 4% over 25 years, payment 1 | €800.00 |
| EUR 240,000 at 4% over 25 years, payment 120 | €573.19 |
Common questions about the Amortization Calculator
- Why is almost all of my first payment interest?
- Interest is charged on the balance, and at the start the balance is the whole loan. On a 30-year mortgage at 6.5%, the first payment is about 86% interest. The share falls every month as the balance drops.
- When does principal overtake interest?
- It depends on the rate and term, not on the amount. The higher the rate and the longer the term, the later the crossover. Step through payment numbers here to find it for your own loan.
- Can I see the whole table?
- Not on this page, which answers the question for one payment at a time. For a mortgage, the mortgage calculator shows the whole loan year by year: principal, interest and the balance left at the end of each year.
- Why does the last payment differ from the rest?
- The level payment is rounded to the cent, so the final payment absorbs whatever is left and lands the balance on exactly zero.