Quick answer: An amortization schedule divides each fixed payment between interest and principal. Early payments are interest-heavy because interest is calculated on a larger balance; the principal share grows as the balance declines.
For fixed-rate loans, each row should identify payment, interest, principal and remaining balance so you can audit how the mortgage loan amortizes and the total interest paid.
Additional principal reduces the balance used for later interest calculations. Confirm that your servicer applies extra funds to principal.
A shorter term usually raises the required payment but can reduce lifetime interest. Compare both payment and total cost.
Next: estimate the complete mortgage payment, plan an early mortgage payoff, compare a refinance scenario.
A mortgage amortization schedule shows how each payment splits between principal (balance reduction) and interest (lender profit). In Year 1 of a 30-year mortgage, over 80% of each payment is interest—not equity. The table above shows your exact principal-interest split for every month of your loan term.
Because interest is calculated based on your outstanding loan balance, your highest interest payments occur at the very beginning of the loan.
When you make an "Extra Principal" payment, you instantly jump forward in the amortization schedule. Every $100 you pay early directly reduces the outstanding balance, meaning the bank can never charge you compound interest on that $100 again.
By looking at our amortization chart, you can clearly see the impact of adding just $200 a month in extra payments. On a $400,000 mortgage at 7%, paying an extra $200 a month will shave roughly 6 years off the loan and save you tens of thousands of dollars in lifetime interest.
Only under three circumstances: 1) You have an Adjustable-Rate Mortgage (ARM) where the rate resets, 2) You "recast" your loan by making a massive lump-sum payment and having the lender recalculate the payment, or 3) You refinance into an entirely new loan.
Yes. By dividing your monthly payment in half and paying it every two weeks, you end up making 26 half-payments a year (which equals 13 full payments). That one "hidden" extra payment per year dramatically speeds up your amortization schedule. Try toggling the "Bi-Weekly" switch in our calculator to see the math.
Calculate a mortgage payment and view the complete principal, interest and remaining-balance schedule.
$417/month
$117/month