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Amortization Calculator
Every payment, the principal and interest split, and your running balance across the whole loan.
How amortization works
Amortization is the process of spreading a loan's principal and interest across equal monthly payments over the term. Early payments are overwhelmingly interest, because interest is computed on the full outstanding balance. As the balance falls, the interest share shrinks and the principal share grows, until the final payment is nearly all principal.
What changes after a recast
A recast keeps your rate and your payoff date, but starts a new amortization from the lower balance. Because the principal is smaller, the interest charge each month is smaller, and that is what produces the lower required payment for the same remaining term.
Using the schedule
- Find your current month to confirm the remaining balance and months you enter elsewhere.
- Spot where interest finally dips below principal, a milestone that arrives sooner after a lump sum.
- Model extra payments and watch the payoff date pull forward.
The formula is the standard M = P[r(1+r)^n] / [(1+r)^n - 1]. Figures are estimates and may differ from your servicer's by a few cents due to rounding.
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