Mortgage Amortization Schedule
Enter your loan details below to generate a complete amortization schedule showing every payment, how much goes to principal, how much to interest, and your remaining balance.
= $80,000
Payment Breakdown
What Is an Amortization Schedule?
An amortization schedule is a complete table of periodic loan payments showing the amount of principal and interest that make up each payment. Early in a mortgage, most of your payment goes toward interest. Over time, as the principal balance decreases, more of each payment goes toward principal.
For example, on a $320,000 loan at 7% for 30 years, your first monthly payment of $2,129 breaks down to $1,867 in interest and only $262 in principal. By year 15, the split is roughly even. By the final year, nearly all of each payment goes to principal.
How to Read Your Amortization Table
- Payment # — which payment number in the loan term
- Principal — the portion reducing your loan balance
- Interest — the cost of borrowing for that period
- Balance — remaining loan balance after the payment
The key insight from an amortization table is the interest-to-principal crossover point — the month when more of your payment goes to principal than interest. On a 30-year mortgage at 7%, this doesn't happen until around payment 252 (year 21). Everything before that point is interest-heavy.
How Extra Payments Affect Amortization
Making extra principal payments accelerates your amortization — you pay less total interest and pay off your loan sooner. Even one extra payment per year can shave years off a 30-year mortgage and save tens of thousands in interest.
Extra Payment Strategies
- Bi-weekly payments — Pay half your monthly amount every two weeks. You end up making 13 full payments per year instead of 12, shaving ~4 years off a 30-year mortgage.
- Round up your payment — If your payment is $2,129, pay $2,200 or $2,300. The extra goes directly to principal.
- Annual lump sum — Apply a tax refund, bonus, or other windfall to your mortgage principal once a year.
- Refinance to a shorter term — If rates drop, refinancing from a 30-year to a 15-year accelerates your payoff and typically comes with a lower rate.
Amortization by Loan Term
Shorter loan terms build equity dramatically faster. On a $320,000 loan at 7%: a 30-year mortgage pays $446,247 in total interest, while a 15-year at 6.75% pays only $173,176 — a savings of $273,071. The trade-off is a higher monthly payment ($2,834 vs $2,129), but you own your home in half the time.
Why Amortization Matters for Refinancing
When you refinance, your amortization resets. If you're 10 years into a 30-year mortgage and refinance into a new 30-year term, you restart the clock — and the interest-heavy early years begin again. This is why many financial advisors recommend refinancing into a term that matches or is shorter than your remaining term.
Amortization Schedule FAQ
Why does most of my payment go to interest at first?
Interest is calculated on your remaining balance. Early in the loan, the balance is highest, so the interest portion is largest. As you pay down principal over time, the interest portion shrinks and the principal portion grows — even though your total payment stays the same.
When does my payment start going mostly to principal?
On a 30-year mortgage at 7%, principal exceeds interest starting around year 21. On a 15-year mortgage, this crossover happens much sooner — around year 6-7. Lower interest rates also move the crossover earlier.
How does my interest rate affect the amortization schedule?
Higher rates mean more interest in each payment and a later crossover point. At 5% on a 30-year mortgage, the crossover happens around year 16. At 8%, it doesn't happen until year 24. The total interest paid also increases dramatically — from ~$298K at 5% to ~$524K at 8% on a $320,000 loan.
Can I get an amortization schedule from my lender?
Yes — lenders are required to provide an amortization schedule at closing. You can also generate one anytime using our calculator above. Enter your exact loan details to see every payment broken down.
What is negative amortization?
Negative amortization occurs when your payment doesn't cover the full interest due, so the unpaid interest is added to your balance. This can happen with some adjustable-rate mortgages or payment-option ARMs. Your loan balance actually grows instead of shrinking. Standard fixed-rate mortgages never have negative amortization.
How do extra payments change my amortization schedule?
Extra payments go directly to principal, reducing your balance faster. This means less interest on every future payment and an earlier payoff date. Adding $200/month extra on a $320,000 loan at 7% saves roughly $115,000 in interest and pays off the mortgage about 7 years early.
What is the difference between amortization and depreciation?
Amortization refers to paying off a loan over time through scheduled payments. Depreciation is the decrease in value of an asset over time. Homes generally appreciate (increase in value) rather than depreciate, which is why real estate is considered a wealth-building investment alongside mortgage amortization.