Amortization Calculator with Extra Payments
See the full amortization schedule for any loan and calculate exactly how much time and interest extra monthly or annual payments save. Compare standard vs. accelerated payoff side-by-side.
Amortization Calculator
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New Payoff Term with Extra Payments
20 yrs 1 mo
Total Interest — With Extra Payments
$198,877.22
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Standard Interest
$318,861
Interest Saved
$119,984
Time Saved
9 yrs 11 mo
New Interest
$198,877
| Year | Interest (Std) | Balance (Std) | Interest (Extra) | Balance (Extra) |
|---|---|---|---|---|
| Yr 1 | $16,168 | $247,206 | $16,095 | $244,733 |
| Yr 2 | $15,981 | $244,224 | $15,681 | $238,052 |
| Yr 3 | $15,781 | $241,043 | $15,234 | $230,923 |
| Yr 4 | $15,568 | $237,649 | $14,756 | $223,317 |
| Yr 5 | $15,341 | $234,027 | $14,247 | $215,202 |
| Yr 6 | $15,098 | $230,163 | $13,703 | $206,543 |
| Yr 7 | $14,839 | $226,041 | $13,123 | $197,304 |
| Yr 8 | $14,563 | $221,642 | $12,505 | $187,447 |
| Yr 9 | $14,269 | $216,948 | $11,844 | $176,929 |
| Yr 10 | $13,954 | $211,940 | $11,140 | $165,707 |
The Formula
The standard amortization formula calculates your fixed monthly payment by dividing the outstanding balance into equal installments over the loan term. Each payment covers the interest accrued since the last payment and reduces the principal balance. Extra payments reduce the principal directly, which shrinks future interest charges and shortens the loan term.
Variable Definitions
Monthly Payment
The required fixed payment per month that fully amortizes the loan over the remaining term, covering both principal and interest in each installment.
Principal
The remaining loan balance that must be repaid. As you make payments, this balance decreases slowly at first because early payments are mostly interest.
Monthly Rate
Annual interest rate divided by 12. Even a small change in the rate significantly affects the monthly payment and total interest over the life of the loan.
Remaining Payments
Total number of monthly payments left on the loan. A 30-year mortgage has 360 payments; a 15-year mortgage has 180 payments.
How to Use This Calculator
- 1
Enter the loan amount, interest rate, and loan term in years or months.
- 2
Add extra monthly payments or extra annual lump-sum payments to see the impact on total interest and payoff timeline.
- 3
The comparison table below shows both the standard amortization schedule and your accelerated payoff schedule side by side.
- 4
Every dollar of extra principal payment saves approximately that dollar plus all the compounded interest it would have generated for the remainder of the loan term.
Common Applications
- See exactly how each loan payment is split between principal and interest over the full life of a mortgage or auto loan.
- Compare how extra monthly payments or lump-sum contributions reduce your total interest and shorten your loan term.
- Plan a debt payoff strategy by understanding when equity builds fastest during the amortization schedule.
Extra principal payments directly reduce the balance that future interest accrues on — saving thousands over the loan term
Understanding the Concept
In the early years of a loan, the vast majority of each payment goes toward interest — almost none reduces the balance. This phenomenon, called front-loaded interest, is the reason extra payments are so powerful. By attacking principal directly in the early years, you prevent future interest from ever accruing on that principal. For a 30-year $250,000 mortgage at 6.5%, the first year of payments results in over $16,000 in interest but less than $3,500 in principal reduction. Paying just $200 extra per month can cut over 5 years off the loan and save tens of thousands in interest. The amortization table below shows exactly how each payment is split month by month.
Frequently Asked Questions
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