Amortization
Amortization is the process of paying off a loan with equal payments split between interest and principal. Early payments are mostly interest because the balance is high; as the balance shrinks, more of each payment goes to principal — so you build equity slowly at first, then faster near the end.
An amortization schedule lists every payment and how it divides between interest and principal. On a 30-year mortgage, you typically repay only about a third of the principal in the first 15 years, which is why extra principal payments early save so much interest.
Put it to work
Amortization Calculator
Build a complete amortization schedule for any loan: payment, year-by-year principal vs interest split, and the effect of extra payments.
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, PMI and HOA — plus total interest and a full amortization breakdown. Free, fast, no signup.
Loan Calculator
Calculate the monthly payment, total interest, and payoff date for any personal, auto, or fixed-rate loan — and see how extra payments shorten it.