Interactive payment timeline with detailed breakdown of principal, interest, and the impact of extra payments on your loan term.
Without extra payments
Including extra payments
Loan term reduction
| Payment # | Date | Payment | Principal | Interest | Extra Payment | Balance |
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An amortization schedule is more than just a list of payments; it's a roadmap of your loan's life. It shows exactly how every dollar you pay is split between paying off your debt (principal) and paying the lender for the privilege of borrowing (interest).
In the beginning of a standard 30-year fixed-rate mortgage, the majority of your monthly payment goes toward interest. It's not uncommon for 70-80% of your initial payments to be pure interest. This is why the loan balance drops so slowly at first.
Over time, the balance shifts. As your principal decreases, the interest charged on that principal also decreases. Eventually, more of your payment starts going toward the principal. This usually happens around year 15-18 for a 30-year loan.
Making extra payments can dramatically shorten your loan term and save you thousands in interest. Since extra payments usually go 100% toward principal, they accelerate the amortization process.