GetToolr

How to Use This Calculator

Enter your loan amount, interest rate, and term. The calculator generates a complete amortization schedule showing how each payment splits between principal and interest. Add extra payments (monthly, yearly, or one-time) to see how much interest you save and how many years you cut from the loan.

Calculator

Loan Amortization Calculator

Full amortization schedule with extra payment modeling for any loan.

Loan Details

$
%
years

Extra Payments

$
$
$

Amortization Schedule (Yearly)

YearPrincipalInterestBalance
1$3,122$20,528$296,878
2$3,343$20,306$293,535
3$3,580$20,069$289,955
4$3,834$19,815$286,121
5$4,106$19,543$282,014
6$4,398$19,252$277,616
7$4,710$18,940$272,907
8$5,044$18,605$267,862
9$5,402$18,247$262,460
10$5,785$17,864$256,675
11$6,196$17,454$250,479
12$6,635$17,014$243,844
13$7,106$16,543$236,737
14$7,611$16,039$229,127
15$8,151$15,499$220,976
16$8,729$14,920$212,247
17$9,348$14,301$202,899
18$10,012$13,638$192,887
19$10,722$12,927$182,165
20$11,483$12,166$170,682
21$12,298$11,352$158,384
22$13,170$10,479$145,214
23$14,105$9,545$131,109
24$15,106$8,544$116,003
25$16,178$7,472$99,826
26$17,326$6,324$82,500
27$18,555$5,094$63,945
28$19,872$3,778$44,073
29$21,282$2,368$22,792
30$22,792$858$0

Monthly Payment

$1,971

Without Extra Payments

Total Paid$709,483
Total Interest$409,483
Payoff30 years

Interest vs Principal

Interest: 58%Principal: 42%

How Loan Amortization Works

When you take out a fixed-rate loan, your monthly payment stays the same for the entire term. But what changes is how that payment is divided. In the first year of a 30-year mortgage at 7%, roughly 85% of each payment goes to interest and only 15% to principal. By year 20, the ratio flips.

This is why extra payments in the early years are so powerful. Every extra dollar goes directly to principal, reducing the balance that future interest is calculated on. A $200 extra payment in year 1 saves far more interest than the same $200 in year 25.

Extra Payment Strategies

Biweekly payments

Instead of 12 monthly payments, make 26 half-payments (every two weeks). This equals 13 full payments per year instead of 12. On a $300,000 mortgage at 7%, this saves about $65,000 in interest and pays off the loan 4.5 years early.

Round up your payment

If your payment is $1,839, round up to $2,000. That extra $161/month barely impacts your budget but can save $70,000+ in interest over the life of the loan.

Annual lump sum

Apply your tax refund, bonus, or other windfall as a yearly extra payment. A $3,000 annual extra payment on a $300,000 loan saves about $85,000 in interest.

Check for prepayment penalties

Most conventional mortgages have no prepayment penalty, but some loans (especially hard money, subprime, or certain commercial loans) do charge a fee for early payoff. Check your loan documents before making extra payments.

Frequently Asked Questions

What is an amortization schedule?
An amortization schedule is a table showing every payment over the life of a loan, broken down into principal and interest. In the early years, most of your payment goes to interest. Over time, the split shifts and more goes toward principal. Understanding this helps you see why extra payments early in the loan save the most money.
How much can I save with extra payments?
On a $300,000 loan at 6.875% over 30 years, paying just $200 extra per month saves about $95,000 in interest and pays off the loan 7 years early. Even small extra payments make a significant difference because they reduce the principal that interest compounds on.
Should I make extra payments or invest the difference?
If your loan interest rate is higher than your expected investment returns (after tax), extra payments win. At 7% mortgage rate, paying down the loan gives a guaranteed 7% return. If your rate is 3-4%, investing in index funds (averaging 7-10%) may build more wealth over time.
What is the difference between amortization and simple interest?
Amortized loans have fixed monthly payments where the interest and principal portions change over time. Simple interest loans charge interest only on the remaining balance without a fixed payment schedule. Most mortgages, auto loans, and personal loans are amortized.

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