See how a fixed-rate loan pays down over time, including your monthly payment and total interest.
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Amortization Summary
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Interest Paid in Year 1—
Principal Paid in Year 1—
Total Interest Over Loan Term—
Total of All Payments—
Formula
Each payment splits between interest (balance × monthly rate) and principal (payment minus interest). Interest is largest in early years and shrinks as the balance falls.
Example
On a $300,000 loan at 6.5% for 30 years, roughly $19,300 of the first year of payments goes to interest, and only about $4,600 reduces the principal balance.
Not tax or financial advice. This calculator provides general estimates based on published 2026 figures. Always confirm important figures with the IRS, SSA, your state tax agency, a licensed lender, or a qualified professional.
Frequently Asked Questions
Why is so little principal paid off early on?
Early payments are calculated on a large remaining balance, so most of each payment covers interest. As the balance shrinks, more of each payment goes to principal.
Does paying extra toward principal help?
Yes, extra principal payments reduce the balance faster, which reduces future interest and can shorten the loan term significantly.