Loan Amortization Schedule (full or yearly)

How amortization works

Each fixed monthly payment is split between interest (charged on the current balance) and principal (the actual loan repayment). At the start of the loan, the balance is high, so most of your payment is interest. As the balance shrinks, interest charges drop and more of each payment goes to principal — until the final payments are almost entirely principal.

Standard fixed-rate amortization formula: monthly payment = P × r / (1 − (1+r)⁻ⁿ), where P is principal, r is monthly rate (annual / 12), n is months. The same monthly payment is used throughout, but its principal/interest split shifts every month as the balance changes.

Why the schedule matters

It tells you exactly when you 'cross over' from paying mostly interest to mostly principal. For a typical 30-year mortgage at 6%, that crossover happens around year 13 — meaning the first 13 years of payments are mostly interest, not equity.

It also shows the cost of staying in a long loan. Compared to a 15-year term at the same rate, a 30-year loan can pay 2-3× total interest over the life of the loan. The schedule makes this concrete: hover the final balance row and total-interest figure to see the long-run cost.

Extra principal payments early in the loan save dramatically more interest than late payments. The schedule helps you see this — paying an extra $100/month for the first 5 years saves more than paying $100/month for years 26-30.

Limitations

Fixed rate only. ARMs (adjustable-rate mortgages) require recomputing the schedule each rate change.

No taxes, insurance, PMI, or escrow. The 'monthly payment' here is principal + interest only. For total housing payment, add T&I/HOA/etc. separately.

No prepayment scenarios. If you make extra payments, the schedule beyond that point is no longer accurate. For prepayment analysis, recompute with the new balance.

Compounding: assumes monthly compounding (standard for US mortgages). Some loan products use daily or simple interest — for those, the schedule is approximate.

Formula and sources

Each row is computed recursively: interest for the month = remaining balance × (annual rate ÷ 12); principal repaid = fixed payment − interest; new balance = previous balance − principal repaid. The fixed payment itself comes from the annuity formula M = P × r ÷ (1 − (1 + r)⁻ⁿ).

This is the textbook amortization method documented by Investopedia and the CFPB (linked under Sources). Real bank schedules can deviate by a few cents due to rounding conventions, and by more if the loan accrues interest daily or carries a variable rate.