Amortization Schedule Calculator
Visualize your loan payoff. See how extra payments reduce principal and save thousands in interest.
Loan Details
Extra Payments (Optional)
Strategy: The Principal Snowball
Did you know? Mortgage interest is front-loaded. This means in Year 1, roughly 80% of your payment is just interest. A $2,000 payment might only reduce your balance by $400.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a table detailing each periodic payment on an amortizing loan. It shows the amount of principal and interest that comprise each payment until the loan is paid off at the end of its term. Early in the loan, most of your payment goes to interest; later, it shifts to principal.
How much interest can I save by paying extra?
The savings can be massive. For a $300,000 loan at 6% over 30 years, paying just $100 extra per month saves over $58,000 in interest and pays off the loan 4 years early. Use the "Extra Payments" field above to simulate your specific savings.
Does paying bi-weekly help?
Yes. A true bi-weekly payment plan means you pay half your monthly mortgage payment every two weeks. Since there are 52 weeks in a year, you make 26 half-payments, which equals 13 full payments per year (instead of the standard 12). That one extra payment per year goes entirely to principal.
What information do I need to use this calculator?
You need your current loan balance (principal), your annual interest rate, the original or remaining term of the loan (in years), and the date you want the schedule to start. Optional fields allow you to test scenarios with extra monthly payments or one-time lump sum payments.
Should I invest or pay off my mortgage early?
This depends on your mortgage interest rate vs. expected investment return. If your mortgage is at 3%, but you expect 7-10% from index funds, investing may build more wealth. However, paying off your mortgage offers guaranteed savings and peace of mind. Many experts recommend a balanced approach: contribute enough to get your employer's 401(k) match, then attack your mortgage.
Do extra payments lower my monthly bill?
No, extra payments shorten your loan term but do not reduce your monthly payment amount. Your contracted payment stays the same. If you want a lower monthly payment, you'd need to "recast" your mortgage. Recasting (offered by some lenders for a fee) recalculates your payment based on your new, lower principal balance.
What is the difference between APR and Interest Rate?
The Interest Rate is the base cost of borrowing expressed as a percentage. The APR (Annual Percentage Rate) is higher because it includes closing costs, points, and other lender fees rolled into the rate. APR gives you a truer picture of the total cost of the loan, making it useful for comparing offers from different lenders.