Finance guide

How to Read an Amortization Schedule

Understand principal vs interest over time and use amortization outputs to plan prepayments.

Quick answer: Amortization schedules show how each payment splits between interest and principal across the loan lifecycle.

Intent: how to read amortization schedule

How to run the numbers

Generate a base schedule from your current balance, rate, and term.
Add optional extra principal to compare payoff speed changes.
Export yearly or monthly rows for side-by-side lender scenario review.

Common mistakes

Small monthly rounding differences can occur versus lender systems.
Skipping escrow costs can understate true monthly housing spend.
Comparing schedules with different terms without labeling can cause confusion.

Calculators to open now

Open primary calculator

Primary

Amortization Schedule

Build a monthly amortization path with optional extra principal and exportable schedule data.

Finance / Mortgage

Mortgage Payment

Monthly P&I, full payment estimate, and amortization summary for homeowners.

PMI Drop-Off

Estimate PMI cancellation timing, total PMI paid, and payment impact with optional extra principal.

Refinance Break-Even

Compare current vs new mortgage payment and estimate break-even timing.

Related guides

When Does PMI Drop Off?

Estimate PMI drop-off timing and total PMI paid with optional extra principal assumptions.

When Does Refinancing Make Sense?

Compare current loan vs proposed refinance and find the break-even timeline for closing costs.

Should You Buy Mortgage Points?

Estimate whether buying points can recover upfront cost within your expected ownership horizon.

How Much House Can I Afford?

Use income, debt, rate, and ownership cost assumptions to estimate a realistic home-price ceiling.

FAQs

Why do extra principal payments help so much?

They reduce balance earlier, which lowers the future interest charged on remaining principal.

Can I use yearly view instead of monthly?

Yes. Yearly summaries are often enough for planning while monthly rows are useful for precise tracking.

Does this account for late fees?

No. This model assumes on-time payments and standard amortization.

This calculator provides planning estimates for educational purposes only. Verify all assumptions with licensed professionals before making financial, legal, tax, insurance, or construction decisions.

Want a sequence instead of a single tool? Open Start Here: Refinancing.