Fixed payment amortization
Each payment covers interest on the remaining balance plus a slice of principal. Early payments are interest-heavy; later ones pay principal faster. That is why refinancing or extra payments can change total interest dramatically.
Demo amortization schedule (first year)
| Mo | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $489.15 | $353.74 | $135.42 | $24646.26 |
| 2 | $489.15 | $355.65 | $133.50 | $24290.61 |
| 3 | $489.15 | $357.58 | $131.57 | $23933.03 |
| 4 | $489.15 | $359.52 | $129.64 | $23573.51 |
| 5 | $489.15 | $361.46 | $127.69 | $23212.05 |
| 6 | $489.15 | $363.42 | $125.73 | $22848.63 |
| 7 | $489.15 | $365.39 | $123.76 | $22483.24 |
| 8 | $489.15 | $367.37 | $121.78 | $22115.87 |
| 9 | $489.15 | $369.36 | $119.79 | $21746.51 |
| 10 | $489.15 | $371.36 | $117.79 | $21375.15 |
| 11 | $489.15 | $373.37 | $115.78 | $21001.78 |
| 12 | $489.15 | $375.39 | $113.76 | $20626.38 |
First 12 payments, demo loan: $25,000 @ 6.5% APR, 5 years (illustrative).
Balance falling over time
The line shows remaining principal for a sample loan. Your numbers above the fold update the chart inside the calculator card.
Frequently asked questions
Quick answers about this calculator. For legal or financial decisions, consult a professional.
Is this the payment my lender will quote?
Maybe not. Lenders add fees, insurance, variable rates, and different day-count conventions. This tool shows a standard fixed-rate amortizing estimate only.
What is APR?
Annual Percentage Rate is a yearly interest rate for borrowing. Here it is converted to a monthly rate for payment math. It may not include every fee your lender charges.
Does this handle extra payments?
Not in the default formula. Extra principal payments shorten the loan and change total interest but are not modeled in the basic schedule shown.
Is this financial advice?
No. It is educational. Consult a qualified professional for borrowing decisions.