Enter a loan and see the monthly payment, the total interest over its life, and how the very first payment splits between interest and principal.
An amortization schedule shows how a fixed-rate loan is paid off over time: the same monthly payment each month, split between interest on the balance and principal that reduces it. Enter your loan, rate, and term to see the payment, the total interest, and how the first payment divides.
Each month, interest is charged on the remaining balance and the rest of your payment reduces the principal. Early on, the balance is large, so most of the payment is interest and little goes to principal. As the balance falls, the interest portion shrinks and principal repayment accelerates, which is why the last years of a loan pay it down far faster than the first.
Over a long term, interest can rival or exceed the amount borrowed. A lower rate, a shorter term, or extra principal payments all cut the total interest, though a shorter term raises the monthly payment. Seeing the total of payments next to the loan amount makes the true cost of borrowing clear before you commit.
It is a table showing each payment on a loan, how much goes to interest and principal, and the balance that remains. This calculator summarizes the key figures rather than listing every month.
Interest is charged on the outstanding balance, which is highest at the start. As you pay down principal, the interest portion of each payment shrinks and more goes to the balance.
Choose a shorter term, secure a lower rate, or make extra principal payments. Even a small extra amount each month can shave years off the loan and save thousands.
See the exact formula and a worked example on our methodology page.