Finance
Amortization Calculator
See how a loan payment splits between interest and principal, and how quickly extra payments clear the balance.
Result
Extra payments are assumed to apply to principal every month from the first payment. Some lenders require you to specify this, and a few charge early-repayment penalties. Check before committing.
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About this calculator
Why does so little of my early payment go to principal?
Interest is charged on the outstanding balance, which is largest at the beginning. Early in a 30-year mortgage roughly three-quarters of each payment can be interest.
Is paying extra worth it?
Every extra dollar comes straight off the principal, so it saves all the future interest that dollar would have accrued. The saving is largest when the extra payments start early.
Should I pay off debt or invest?
Compare the loan rate against the return you would realistically earn after tax. Paying off an 18% card is an unbeatable guaranteed return; overpaying a 3% mortgage rarely is.
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