What is amortization?

Amortization is the process of paying off a loan in equal installments over a fixed period. Each payment covers the interest for that period first, then reduces the principal balance.

How do extra payments change the amortization schedule?

Extra payments reduce the principal directly. This lowers the interest charged in future months and shortens the total number of payments, as shown in the schedule above.

Amortization Schedule Calculator

See every payment broken into principal, interest and balance.

Loan Details

Loan Amount ($)

Interest Rate (% per annum)

Loan Term (years)

yrs

Compound

Pay Back

Extra Monthly Payment ($)

Monthly Payment

—

Loan Amount

—

Total Payment

—

Total Interest

—

Principal vs Interest by Year

Amortization Schedule

Full breakdown for every payment period.

Month	Payment	Principal	Interest	Extra	Balance

How amortization works

Each payment first covers the interest that accrued on the remaining balance, and the rest reduces the principal. Early in the schedule most of your payment is interest; near the end most of it is principal. Extra payments accelerate this by reducing the balance faster, which is why the schedule above ends early when extras are added.

Amortization Calculator FAQ

What is the difference between amortization and interest rate?▶

The interest rate determines how much interest accrues. Amortization describes the payment schedule that gradually pays down the principal while covering that interest.

Can I download the amortization schedule?▶

Yes, click the "Download CSV" button in the result panel to export the full schedule to Excel or Google Sheets.