Loan Amortization Calculator — Full Schedule & Extra Payment

Free Loan Amortization Calculator. Generate full amortization schedule, compare standard vs accelerated payoff, see total interest saved with extra payments. Interactive payment table included.

💰 Loan Details

🏦 Loan Amount ($)

📈 Annual Interest Rate (%)

📅 Loan Term (years)

⚡ Extra Monthly Payment ($) Paying extra each month shortens the term and saves interest

📆 Standard Monthly Payment

Standard: full term

⚡ Accelerated Monthly

With extra payment

🏆 Interest Saved

Accelerated vs Standard

📉 Remaining Balance Over Time

Standard Accelerated (with extra payment)

📋 Full Amortization Schedule

📄 Show Full Table

⚡ Also try: Buy vs Rent · Debt Snowball vs Avalanche · Save or Invest · Retirement Calculator · Which Neighborhood

📖 Understanding Loan Amortization and Accelerated Payoff

When you take out a loan, the bank isn't just lending you money — they're selling you the use of their money over time. That's why interest makes up the majority of your early payments. Understanding how amortization works can help you make smarter decisions about extra payments and payoff strategies.

Key insight: On a $300,000 mortgage at 6.5% over 30 years, you'll pay roughly $383,000 in interest alone — more than the original loan amount. Adding just $100/month to your payment saves ~$35,000 in interest and cuts 4 years off your loan.

How Standard Amortization Works

Fixed monthly payment: Your payment stays the same for the entire loan term
Front-loaded interest: In year 1, ~80% of each payment goes to interest; by year 20, ~80% goes to principal
Slow initial equity: After 5 years of payments on a 30-year mortgage, you've only paid off about 5% of the principal
Back-loaded principal: The last 10 years of a 30-year loan see rapid equity building
Predictable schedule: You always know exactly what you owe and when it will be paid off

The Power of Extra Payments

100% principal reduction: Every extra dollar goes directly to reducing your balance
Compounding savings: Early extra payments save more because they reduce interest-earning balance for more months
Tax considerations: Mortgage interest may be tax-deductible, reducing the effective benefit of extra payments
Opportunity cost: Would the extra money earn more invested elsewhere? Compare expected returns vs your loan rate
Flexibility: You can make extra payments anytime — lump sums from bonuses or tax refunds work too

Is Accelerated Payoff Right for You?

Accelerating loan payoff makes sense when: you have a fully funded emergency fund, you're already saving enough for retirement, and your loan rate is higher than conservative investment returns. For mortgage rates under 5%, investing the difference often wins over the long term. For auto loans at 7%+ or personal loans at 10%+, paying them down faster is a guaranteed, risk-free return.

Last updated: July 1, 2026
How this calculator works: Enter your loan amount, annual interest rate, and term. The standard amortization calculates a fixed monthly payment using the formula M = P × [r(1+r)^n] / [(1+r)^n − 1]. The accelerated scenario adds your extra monthly payment and recalculates the payoff timeline. Each month, interest is computed on the remaining balance (monthly interest = balance × (annual rate / 12)), the excess goes to principal. The balance curve shows how your loan principal declines over time for both scenarios. All figures are estimates — actual loan terms may vary. Consult a financial professional for personalized advice.

❓ Frequently Asked Questions About Loan Amortization

What is loan amortization?▼

It's the process of paying off a loan through regular payments. Each payment splits between interest and principal. Early on, most goes to interest; later, more goes to principal. The amortization schedule shows every payment over the full loan term.

How much can extra payments really save?▼

On a $300k mortgage at 6.5%: $50/month saves ~$19k in interest and cuts 2 years. $100/month saves ~$35k and cuts 4 years. $200/month saves ~$60k and cuts 7 years. The earlier you start, the bigger the savings.

Should I pay off my mortgage early?▼

It depends. If your mortgage rate is below 5% and you have other financial priorities (retirement savings, emergency fund), investing may be better. If you're close to retirement or the rate is 6%+, paying down the mortgage gives a guaranteed risk-free return.

What's better: bi-weekly payments or extra monthly payments?▼

Bi-weekly payments (half payment every 2 weeks) result in 26 half-payments per year = 13 full payments, effectively one extra payment annually. It's a set-it-and-forget-it approach. Our calculator models extra monthly payments for the same effect.

Do I need to tell my lender about extra payments?▼

Always specify that extra payments should go toward principal, not prepayment of next month's bill. Most lenders allow this online or require a note. Check for prepayment penalties — some loans charge fees for paying off early.