Amortization schedule
See where every payment goes. Early on, most of it is interest; by the end, almost all of it pays down the balance.
Monthly payment—
Total interest—
Total of payments—
Last payment—
Payment schedule
Open a year to see its monthly payments. Payment 1 is due a month after the loan starts.
| Year / payment | Paid | Principal | Interest | Balance after |
|---|
Reading an amortization schedule
Each month, interest is charged on what you still owe: the APR divided by 12, times the balance. Your payment covers that interest first and the remainder reduces the balance. Because the balance is largest at the start, so is the interest, which is why the first year of a loan pays down far less principal than the last.
Why it matters if you repay early
Paying a loan off early saves the interest you haven't been charged yet, which is the interest at the bottom of the schedule. Extra payments in the first years therefore save the most. The early payoff calculator puts a number on it.
The schedule rounds each payment and each month's interest to the cent and lets the final payment absorb the difference, as lenders do. Your lender's schedule can differ by a few cents, or more if interest accrues daily and payments arrive early or late.