Financial Calculators
Amortization Calculator
Generate a year-by-year amortization schedule showing how each payment splits between principal and interest.
Quick guide
Enter the loan amount, the annual interest rate, and the term to build a year-by-year amortization schedule. It shows how each year’s payments split between interest and principal, and how the remaining balance falls slowly at first and faster later.
Read the full explanationHow It Works
An amortization schedule tracks every payment: the interest portion is the monthly rate times the remaining balance, and the rest reduces principal. The balance declines slowly at first, then faster.
Formula Used
Interestₜ = Balanceₜ₋₁ × r; Principalₜ = M − Interestₜ; Balanceₜ = Balanceₜ₋₁ − Principalₜ.
Example Calculation
A $200,000 loan at 6% for 30 years costs $1,199 per month; in year 1 about $11,900 goes to interest and only $2,490 to principal.
Practical Use Cases
- See how much equity you build each year.
- Plan the impact of refinancing at a given point.
- Understand why extra early payments save the most.