Finance
Amortization Calculator: Your Payment Schedule
Learn how amortization works and how payments split between principal and interest.
An amortization schedule breaks each payment into principal and interest.
How It Works
Each payment covers interest plus principal. As balance drops, less interest, more goes to principal.
Reading the Table
- Payment: Fixed total
- Principal: Reduces balance
- Interest: Pays lender
- Balance: Remaining amount
Extra Payments
Extra principal payments reduce balance faster, saving thousands in interest.
Terms
Mortgages: 15-30 years. Auto: 3-7 years. Shorter = faster equity.
Frequently Asked Questions
What is amortization?
A table showing each payment split into principal and interest.
Why more interest early?
Interest is on remaining balance, which is highest at the start.
Extra payments help?
Yes. Applied to principal, they reduce balance, interest, and term.