Amortization Schedule Calculator

An amortization schedule is a complete table showing every monthly payment over the life of a loan, broken down into principal and interest components. It shows you exactly how much of each payment goes toward reducing your balance (principal) versus paying the lender for the use of their money (interest). In the early years, most of each payment covers interest. Over time, the balance shifts until the final payments are almost entirely principal.

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Interest is calculated as a percentage of your remaining balance each month. At the start of a mortgage, your balance is at its highest, so the interest charge is large. As you make payments and the balance decreases, less interest accrues each month. Your total payment stays the same (on a fixed-rate loan), so the portion going to principal naturally increases as the interest portion shrinks. This is why the first few years of a mortgage feel like you are barely making progress on the balance.

Extra payments go directly toward reducing your principal balance. This has two immediate effects: (1) less interest accrues in subsequent months because the balance is lower, and (2) the loan is paid off sooner because you are eliminating principal faster than the original schedule anticipated. Enter an extra monthly payment amount above to see exactly how many months and dollars you could save.

Amortization refers to spreading out loan payments over time — it is about paying off a debt gradually. Depreciation is an accounting concept that spreads the cost of a physical asset (like equipment or a building) over its useful life. Both involve spreading a cost over time, but amortization deals with loans and intangible assets, while depreciation deals with tangible physical assets. In the context of mortgages, amortization is always about the loan repayment schedule.

Most conventional mortgages originated in the United States today do not have prepayment penalties. Federal regulations prohibit prepayment penalties on most residential mortgages after the Dodd-Frank Act. However, some older loans, certain non-qualified mortgages, and commercial loans may include prepayment clauses. Always review your loan agreement and contact your servicer before making large lump-sum payments to confirm there is no penalty.

It depends on your financial situation and goals. A 15-year mortgage has higher monthly payments but comes with a lower interest rate and dramatically less total interest paid. A 30-year mortgage has lower monthly payments, giving you more cash flow flexibility, but you pay significantly more in interest over the life of the loan. Many financial advisors suggest taking a 30-year mortgage for the lower required payment, then making extra payments toward principal as your budget allows — giving you the flexibility of a 30-year term with the interest savings of a shorter loan.

This calculator uses the standard amortization formula and is accurate to the cent for fixed-rate loans. It calculates principal and interest only — property taxes, homeowner's insurance, PMI, HOA fees, and other escrow items are not included in the amortization schedule. For a full PITI payment estimate, use our Payment Calculator. Actual lender statements may differ slightly due to rounding methods, day-count conventions, or payment application policies.

No. This amortization schedule shows principal and interest (P&I) only. Property taxes, homeowner's insurance, and PMI are escrow items that are typically collected by your lender each month but are not part of the amortization calculation. Your total monthly payment will be higher than the P&I figure shown here. Use our Payment Calculator to estimate your full PITI payment including taxes and insurance.