See where every dollar goes
An amortization schedule answers a simple question most loan quotes skip: of the payment you make each month, how much actually reduces what you owe? Enter any loan and the table above breaks it down year by year — principal paid, interest paid, and the balance left.
The front-loaded interest problem
On a 30-year mortgage, more than half of your first year's payments can go to interest alone. That's why the balance seems stuck early on. Understanding this is the whole case for making extra principal payments or choosing a shorter term.
Example
On a $250,000 loan at 6.5% over 30 years, the first payment is about $1,580 — and roughly $1,350 of it is interest. Only around $230 reduces the balance. Two decades in, that ratio flips.
Related tools
Planning a home purchase? Use the mortgage calculator for taxes and insurance too, or the refinance calculator to see if a new rate pays off. For any other loan, start with the loan calculator.