Calculate your amortization schedule and see how extra payments affect payoff
| Item | Standard | With Extra |
|---|---|---|
| Monthly Payment | $0.00 | $0.00 |
| Total Interest | $0.00 | $0.00 |
| Total Payments | $0.00 | $0.00 |
| Number of Payments | 0 | 0 |
| Payoff Date | - | - |
Amortization Schedule
| # | Date | Payment | Principal | Interest | Extra | Balance |
|---|
Read and compare an amortization schedule
An amortization schedule divides each loan payment between interest and principal. Early in a long fixed-rate loan, interest often receives a larger share because it is calculated on a higher outstanding balance. As principal falls, less interest accrues and more of the same payment reduces the balance.
Use the schedule to identify the expected payoff date, yearly interest, and effect of extra principal payments. Extra payments can save interest when the lender applies them directly to principal and the contract does not charge a prepayment penalty.
How to use this calculator
- Enter the original or current loan balance, fixed annual rate, and remaining term.
- Calculate the standard schedule and note total interest and payoff date.
- Add a recurring or one-time extra principal payment.
- Compare the revised payoff date and interest total with the original schedule.
How the calculation works
Each period's interest is the opening balance multiplied by the periodic interest rate. Principal paid equals the scheduled payment minus interest. The closing balance is the opening balance minus principal and any extra principal payment.
A practical example
A $250,000 mortgage at 6% for 30 years has principal and interest near $1,499 per month. In the first payment, about $1,250 is interest and $249 reduces principal. Adding $100 monthly can shorten the loan and save many thousands in interest, depending on the start date.
How to use the result in a real decision
Use the schedule to choose an extra-payment strategy that can be maintained without weakening the rest of the budget. Compare the guaranteed interest saving with other uses of the cash, including higher-rate debt, emergency reserves, and employer-matched retirement contributions. If extra payments are occasional, model them near the dates they are likely to occur. Always verify the servicer's current principal balance and instructions before sending a large additional payment.
Ways to make the estimate more useful
- Confirm that extra funds will be applied to principal rather than to the next payment.
- Keep an emergency reserve before committing all surplus cash to the loan.
- Compare extra payments with other goals and the after-tax cost of the debt.
- Use the remaining balance and term when analyzing a loan already in progress.
Frequently asked questions
Why is so much of the first payment interest?
Interest is calculated on the outstanding balance, which is highest at the beginning of the loan.
Do extra payments always reduce the payment?
Usually they shorten the payoff period unless the lender formally recasts the loan. Contract rules determine the result.
Does the schedule include escrow?
The loan schedule normally covers principal and interest. Property tax and insurance escrow do not reduce principal.
NumbersHub educational guide. Review calculator assumptions before relying on an estimate.