---
title: "Amortization Calculator — Full Payment Schedule, US, UK & Canada"
description: "Generate a complete month-by-month amortization schedule for any loan. See principal vs interest breakdown. Covers US 30-year, UK repayment mortgages, Canadian 25-year. Free."
url: "https://worldcalculators.org/calculators/amortization/"
canonical: "https://worldcalculators.org/calculators/amortization/"
---

# Amortization Calculator

Generate a complete month-by-month amortization schedule for any loan. See principal vs interest breakdown. Covers US 30-year, UK repayment mortgages, Canadian 25-year. Free.

## Quick answer

On a $300,000 mortgage at 7% for 30 years, monthly payment = $1,996 . In year 1, only $356/month reduces your principal — the rest is interest. By year 15, it flips: over half each payment is principal. Total interest paid: $418,527 — 1.4× the original loan.

## Understanding Loan Amortization

The amortization formula calculates equal monthly payments that cover both principal and interest, ensuring the loan reaches zero at the end of the term:
Where P = principal, r = monthly rate (annual/12), n = total months.

## The Front-Loading Effect: Why Early Payments Are Mostly Interest

The most surprising thing about amortization is how slowly your balance falls in the early years. On a $300,000 mortgage at 7% for 30 years, your first monthly payment of $1,996 breaks down like this: $1,750 goes to interest and only $246 reduces your principal. By year 15 (payment 180), the split has almost reversed: $1,083 to interest and $913 to principal. This "front-loading" is not a trick — it is a mathematical consequence of the PMT formula. Because the interest owed each month is the outstanding balance × monthly rate, and the balance starts large, interest is naturally large at the start.

## How Extra Payments Can Save You Tens of Thousands

Because early payments pay so little principal, even one extra payment per year — or a small addition to each monthly payment — can dramatically cut total interest and shorten the loan. On the same $300,000 / 7% / 30-year loan, adding just $200 extra per month reduces the loan to about 24 years and saves roughly $90,000 in total interest. The schedule below shows your accelerated payoff date automatically if you use this calculator with a shorter term.

## Balloon Payments and Interest-Only Periods

Not all loans are fully amortizing. Some UK mortgages and many commercial loans include an interest-only period — you pay only interest for 5–10 years, then the full principal is due (as a "balloon payment") or you switch to a standard amortizing schedule. This makes payments lower initially but means your balance does not decrease at all during the interest-only window. In the UK, many buyers use "repayment" (amortizing) mortgages but are offered interest-only by some lenders — always confirm which type you have.

## Worked Example: $200,000 at 6.5%, 25 Years

Using M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1]: monthly rate r = 6.5%/12 = 0.5417%, n = 300 payments. M = $200,000 × (0.005417 × 1.005417³⁰⁰) / (1.005417³⁰⁰ − 1) = $1,351/month . Total paid = $1,351 × 300 = $405,300. Total interest = $405,300 − $200,000 = $205,300 — you pay the loan value again in interest over 25 years. Reducing to 20 years would raise monthly payments to $1,491 but cut total interest to $157,800, saving $47,500.

Source: https://worldcalculators.org/calculators/amortization/
Markdown mirror of the HTML page. Prefer this URL for RAG; the interactive calculator still lives on the HTML page.