The short answer
Last updated: July 2026
An amortization schedule shows how each fixed loan payment splits between interest and principal over the term. The monthly payment is P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n the number of payments. A $320,000 loan at 6.5% for 30 years runs about $2,023 a month.
After the estimate:
Put the result into a reviewed workflowAmortization schedule calculator
See where every payment goes.
Enter the loan amount, rate, and term to get the monthly principal & interest payment — and a year-by-year schedule of principal paid, interest paid, and the balance left.
Loan amount
$
Interest rate (APR)
6.50%
0%
12%
Loan term
30 yrs
5 yrs
40 yrs
Input-driven result
Your inputs
Formula
Result below
Monthly principal & interest
$2,023
Fixed payment over 30 years at 6.50% APR.
Total interest over the term
$408,142
On top of the $320,000 you borrowed.
Estimate based on your inputs. Not a promise of results.
Estimate only. It assumes a fixed rate and no extra payments, and covers principal & interest — taxes, insurance, and any escrow are separate.
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Watch it work
How it works
How this tool works.
A mortgage payment looks like one flat number, but underneath it the mix shifts every month. Early on, most of the payment is interest on a large balance; as the balance shrinks, more of the same payment goes to principal. Seeing that shift laid out by year is the fastest way to understand why the first years of a loan build equity slowly and the last years build it fast.
This calculator takes the loan amount, interest rate, and term, computes the fixed monthly principal & interest payment, and simulates the loan month by month. It rolls the results into a compact year-by-year schedule — principal paid, interest paid, and the remaining balance — so you can see exactly where any year of the loan stands. It is arithmetic on your inputs, not a quote or an offer.
1
Enter the loan amount, then set the interest rate and term with the sliders.
2
The tool computes the fixed monthly principal & interest payment from the standard amortization formula.
3
It then walks the loan month by month — interest accrues on the remaining balance, the rest of the payment reduces principal — and rolls each year into one row.
4
Read the table to see principal paid, interest paid, and the balance left at the end of every year of the term.
Make the result useful
Read the changing mix of each payment
Early payments on an amortizing loan generally contain more interest than principal. The schedule makes that allocation visible rather than treating every payment as the same kind of progress.
Use the original balance, rate, and term from loan documents. Escrow, taxes, and insurance belong in a cash budget but are not loan principal or interest.
Worked example
A payment may stay level while the interest portion falls and principal portion rises. That is why remaining balance does not decline in a straight line.
Does it include escrow?
No. Escrow is separate from the principal-and-interest amortization.
Questions landlords ask
Questions about this tool and its limits.
Why does so much of each early payment go to interest?
Interest is charged on the remaining balance, and the balance is largest at the start. On a $320,000 loan at 6.5%, the first month accrues about $1,733 of interest against a roughly $2,023 payment — so only around $290 reduces principal. As the balance falls, the interest share falls with it and the principal share grows.
Is this my full monthly housing payment?
No. The schedule covers principal and interest only. Property taxes, homeowners or landlord insurance, mortgage insurance, and any HOA dues are on top, and many lenders collect some of those through escrow. Your actual monthly outlay is usually noticeably higher than the P&I figure here.
What does this calculator not tell me?
It assumes a fixed rate and no extra payments, so it cannot model an adjustable-rate loan, refinancing mid-term, or prepayments. It also is not a loan quote — your lender’s actual amortization can differ slightly due to closing dates, escrow, and rounding. Treat it as an estimate from your own numbers.
What happens if I pay extra principal?
Extra principal shortens the schedule and cuts total interest, because every future month accrues interest on a smaller balance. This table shows the baseline with no extra payments; our mortgage payoff calculator models the extra-payment scenario side by side.
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Editorial ownership
Written and maintained by the Aptoria editorial team
Editorial method reviewed July 28, 2026. Aptoria reviews scope, source fit, examples, limitations, links, and publication gates. This record does not claim attorney, CPA, lender, appraiser, or other independent professional sign-off.
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