Loan Payment Table Generator
Create a complete amortization schedule for any loan in seconds
Tip: Use this tool to understand exactly how each payment affects your loan balance over time.
Loan Summary
Regular Payment
$0.00
Total Interest
$0.00
Total Cost
$0.00
Payoff Date
--
With Extra Payments
--
Interest Saved
$0.00
Time Saved
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Payment Schedule
| Payment # | Date | Payment | Principal | Interest | Extra Payment | Balance |
|---|
Note: This amortization schedule assumes all payments are made on time. Late payments may affect the repayment timeline.
Understanding Loan Amortization
How Loan Payments Work
Amortization is the process of spreading loan payments over time. Each payment covers both interest (calculated on the remaining balance) and principal (the actual loan amount). Early payments are mostly interest, while later payments apply more to principal.
Front-Loaded Interest
In the early years, most of your payment goes toward interest because the outstanding balance is higher. This is why paying extra early can save significant interest.
The Power of Extra Payments
Even small additional principal payments can shorten your loan term dramatically because they reduce the principal balance on which future interest is calculated.
Amortization in Action
| Loan Type | Early Payment (Interest/Principal) | Final Payment (Interest/Principal) | Interest % of Total Cost |
|---|---|---|---|
| 30-Year Mortgage ($300k @4%) | 80%/20% | 3%/97% | ~72% |
| 5-Year Car Loan ($25k @5.5%) | 70%/30% | 5%/95% | ~14% |
| 15-Year Mortgage ($200k @3.5%) | 65%/35% | 2%/98% | ~28% |
Strategies to Reduce Loan Costs
Biweekly Payments
Making half your monthly payment every two weeks results in 26 half-payments (13 full payments) per year instead of 12. This can cut years off your loan term with minimal budget impact.
Round Up Payments
Simply rounding up your payment to the nearest $50 or $100 can significantly reduce interest costs. For example, rounding a $478 payment to $500 pays an extra $22 toward principal each month.
Annual Lump Sums
Applying tax refunds, bonuses, or other windfalls as extra principal payments can make a big impact without affecting your monthly budget.
Refinancing
When interest rates drop significantly, refinancing to a shorter term or lower rate can save thousands. Always calculate the break-even point (when savings exceed costs).
"Making just one extra mortgage payment per year on a 30-year loan can reduce the term by 4-5 years and save tens of thousands in interest."
Frequently Asked Questions
Why does my early payment go mostly toward interest?
Interest is calculated based on your current loan balance. Since the balance is highest at the beginning, more interest accrues early in the loan. As you pay down principal, the interest portion decreases while the principal portion increases with each payment.
How do extra payments affect my amortization schedule?
Extra payments reduce your principal balance immediately, which reduces future interest calculations. This creates a compounding effect where each subsequent regular payment pays more toward principal than originally scheduled, potentially shortening your loan term significantly.
Is it better to make extra payments or invest the money?
This depends on your loan's interest rate vs. expected investment returns. Generally, if your loan rate is higher than conservative investment returns (4-6%), paying down debt is better. For low-rate loans (under 4%), investing may make more sense mathematically, but debt reduction provides guaranteed "returns" and peace of mind.
What's the difference between amortized and interest-only loans?
Amortized loans (like most mortgages) have payments covering both principal and interest, paying off the loan over time. Interest-only loans require payments covering just interest for a period, after which payments jump significantly to amortize the principal, often resulting in higher total interest costs.
Can I generate an amortization schedule for my specific loan?
Yes! Our calculator above creates a customized amortization schedule based on your exact loan amount, interest rate, term, and start date. You can even model the impact of extra payments to see potential savings.