Generate a complete month-by-month amortization schedule. Calculate how much of each payment goes to principal vs interest, your remaining balance, and how much early extra payments save.
Enter loan details
Fill in loan amount, interest rate and term to generate the full schedule.
| Month | Payment | Principal | Interest | Balance |
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In an amortizing loan, each fixed monthly payment covers two components: interest on the outstanding balance and principal reduction. In the early years of a mortgage, most of each payment goes toward interest. Over time, as the balance decreases, the principal portion grows.
M = monthly payment P = principal r = monthly rate (annual rate / 12) n = total number of payments
Making extra principal payments is one of the most effective ways to save money on a mortgage. Because each dollar of extra principal reduces your outstanding balance immediately, all future interest is calculated on a lower amount: creating a compounding benefit over the remaining loan term.
Monthly payment: $1,995.91. Total interest over 30 years: $418,527: more than the original loan. By paying an extra $200/month, you would pay off the loan in about 24 years and save approximately $73,000 in interest.
This illustrates why extra payments are so powerful: you are not just eliminating one month of interest, but all the compounding interest that would have accrued on that principal for years into the future.