Amortization Calculator

It lists every scheduled payment and splits it into interest and principal. Interest is calculated from the balance still outstanding; principal is the part that reduces that balance. The CFPB calls this chart an amortization schedule and notes that interest usually takes a larger share near the beginning of a fixed-payment loan.

The rate stays fixed, but the balance does not. Early interest is charged against nearly the whole original principal. Each principal payment lowers the next month’s balance, so the interest charge shrinks and more of the same scheduled payment becomes principal.

No. This schedule is principal and interest only. A mortgage servicer may collect property tax, homeowners insurance, mortgage insurance, or other escrow amounts on top. Those items can change even while a fixed-rate principal-and-interest payment stays level.

The extra amount reduces the balance in the month it is paid, so every later interest charge starts from a smaller balance. The schedule then ends earlier and total interest falls. Check your agreement and tell the servicer to apply the excess to principal rather than merely advancing the next due date.

Contracts can use daily interest, different due-date conventions, or a different rounding rule. This calculator models equal monthly periods, rounds each month’s interest half-up to the cent, and adjusts the final payment to the exact remaining balance. Your signed note and servicer statement control.

No. It assumes one fixed rate and a fully amortizing level payment for the entire term. An adjustable-rate loan needs a dated series of future rates, while an interest-only or balloon loan deliberately follows a different payment pattern.