See exactly where every payment goes: how much is interest, how much pays down the loan, and the balance left after each month or year.
What amortization means
An amortized loan is paid off with equal monthly payments. Each payment first covers that month's interest, and the rest pays down the balance. Early on the balance is high, so most of the payment is interest. As the balance falls, the interest shrinks and more goes to the loan.
How each line is calculated
Interest this month = balance × (yearly rate ÷ 12)
Principal this month = payment − interest
New balance = balance − principal
On a $300,000 loan at 6.5% for 30 years, the payment is $1,896.20. In month one, interest is $300,000 × 0.065 ÷ 12 = $1,625.00, so only $271.20 pays down the loan. It takes until payment 233, almost 20 years in, before more of each payment goes to the loan than to interest.
Extra payments
Every extra dollar goes straight to the balance, which cuts the interest on every later payment. On the example loan, $200 extra a month pays it off about 7 years early and saves around $103,000 in interest. Try it with the "Extra each month" box.
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Your lender's schedule may differ by a few cents because of rounding each month. It isn't financial advice.
How we checked this
Before every update, this calculator is run in a real browser with these known answers, and it must match all of them:
- $300,000 at 6.5% for 30 years: $1,896.20/month ✓
- Total interest $382,633.47 ✓
- $200 extra a month saves about $103,449 and 6 years 11 months ✓
Last checked October 26, 2026. Spotted something wrong? The math is done in your browser with the formula shown on this page, so you can check any result by hand.
Questions people ask
What is an amortization schedule?
A table of every loan payment showing how much goes to interest, how much to principal, and the balance left afterwards.
Why is most of my payment interest at first?
Interest is charged on the balance, which is highest at the start. As you pay it down, each month's interest gets smaller and more of the same payment goes to principal.
How much is the payment on a $300,000 loan at 6.5%?
Over 30 years it's $1,896.20 a month, with about $382,633 of total interest.
Do extra payments shorten the loan?
Yes. Extra money goes straight to the principal, so the loan ends sooner and you pay less interest. Check with your lender that extra payments go to principal.