Loan Amortization Calculator
See exactly how your loan payments break down between principal and interest. Explore how extra payments can save you money and shorten your loan.
Loan Details
See how paying extra each month saves you money
Loan Summary
Amortization Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $4,374 | $1,496 | $20,626 |
| Year 2 | $4,667 | $1,203 | $15,960 |
| Year 3 | $4,979 | $891 | $10,981 |
| Year 4 | $5,313 | $557 | $5,668 |
| Year 5 | $5,668 | $202 | $0 |
How This Calculator Works
Monthly payment formula:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Where P = loan amount, r = monthly rate (annual ÷ 12), n = total payments.
Each month's breakdown: Interest = remaining balance × monthly rate. Principal = payment − interest. This is why early payments are mostly interest — the balance is highest, so interest charges are highest.
Extra payments reduce the balance directly, which lowers next month's interest charge. This accelerates the principal paydown compounding — each dollar of extra payment saves more than one dollar of future interest.
Payoff date with extra payments is recalculated month-by-month: once the remaining balance drops below the regular payment amount, the final payment is just that remaining balance plus one month of interest.