Get a complete yearly breakdown of your home loan payments.
| Year | Principal Paid | Interest Paid | Total Interest Paid | Remaining Balance |
|---|
Purchasing a home is likely the most significant financial commitment of your life. Whether you are a first-time homebuyer, a real estate investor, or looking to refinance a property, understanding the long-term impact of interest is crucial. Amortization is the process of paying off a debt over time through regular, fixed installments — and knowing exactly how your payments are split between principal and interest can save you thousands of dollars.
Our Mortgage Amortization Calculator generates a full year-by-year repayment schedule instantly. It's completely free, works on any device, and requires no sign-up — enter your loan amount, rate, and term to see exactly how your balance shrinks over time.
Where: M = Monthly Payment, P = Principal Loan Amount, r = Monthly Interest Rate (Annual Rate ÷ 12), n = Total Number of Months (Years × 12).
Here's how the principal-to-interest ratio shifts year by year on a typical loan:
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| Year 1 | $3,240 | $15,180 | $236,760 |
| Year 5 | $4,430 | $13,990 | $220,410 |
| Year 10 | $6,070 | $12,350 | $194,340 |
| Year 15 | $8,310 | $10,110 | $157,530 |
| Year 20 | $11,380 | $7,040 | $105,720 |
| Year 25 | $15,590 | $2,830 | $34,290 |
| Year 30 | $18,240 | $180 | $0 |
Notice how the principal portion grows and the interest portion shrinks every year — this is the core mechanic of amortization.
This is the original amount of money you borrowed. As you move further into your amortization schedule, the portion of your payment applied to the principal increases every year.
Calculated on your remaining balance each month. High interest rates in the early years are why even a small extra payment toward the principal can shave years off your loan term.
With a fixed-rate mortgage, your total monthly payment stays the same, but the internal "split" between interest and principal shifts every month. Our calculator visualizes this shift with precision.
The table below shows how adding extra monthly payments toward principal shortens a $240,000, 30-year loan at 6.5%:
| Extra Monthly Payment | New Payoff Time | Interest Saved |
|---|---|---|
| $0 (baseline) | 30 years | $0 |
| +$100/month | 25.8 years | $41,200 |
| +$200/month | 22.7 years | $70,900 |
| +$300/month | 20.4 years | $93,500 |
| +$500/month | 17.1 years | $124,800 |
| Feature | 15-Year Fixed | 30-Year Fixed |
|---|---|---|
| Monthly Payment | Higher | Lower (More Affordable) |
| Interest Rate | Typically Lower | Typically Higher |
| Total Interest Paid | Significantly Less | Significantly More |
| Equity Build-up | Rapid | Slow in early years |
Always confirm with your lender that additional payments are applied directly to principal, not just "paid ahead" on your regular schedule.
Some loans charge a fee for paying off early. Check your loan agreement before making large extra payments.
Refinancing resets your amortization clock. If you're already 10+ years into a 30-year loan, refinancing into a new 30-year term can actually cost more in total interest — always compare the break-even point.
An amortization schedule shows you exactly where every dollar of your mortgage payment goes, and reveals just how powerful even small extra payments can be over the life of a loan. Run different scenarios in the calculator above to find a strategy that gets you debt-free faster while staying within your budget.