Amortization Calculator
View a complete month-by-month payment schedule showing principal and interest breakdown.
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Monthly Payment
$1,264
360 payments
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How Amortization Works
Each monthly payment covers the interest on the remaining balance, with the remainder going to principal. As the balance shrinks, less interest accrues and more principal is paid — accelerating payoff over time.
Interest = Balance × (Rate ÷ 12)
Principal = Payment − Interest
New Balance = Balance − Principal
Principal = Payment − Interest
New Balance = Balance − Principal
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule shows each monthly payment broken into principal and interest over the life of a loan. Early payments are mostly interest; later payments are mostly principal.
How is each payment split between principal and interest?
Interest = remaining balance × monthly rate. Principal = total payment − interest. Each month, the balance decreases, so less goes to interest and more to principal.
How can I pay off my loan faster?
Make extra principal payments. Even $50/month extra can save thousands in interest and years off the term. This calculator shows the standard schedule; add extra payments to see the impact.