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Finance

Amortization Calculator

See how a loan payment splits between interest and principal, and how quickly extra payments clear the balance.

Your numbers

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Result

Scheduled monthly payment $1,580.17
Interest in payment one $1,354.17 The rest goes to principal
Interest saved by paying extra $98,120
Time saved 7 yrs 11 mo
Paying an extra 200 a month clears the loan in 22 yrs 1 mo instead of 30 years, saving $98,120 in interest.

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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Questions

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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Numbers are only half the job

Good margins still need customers finding you and systems that hold it together. BDEVY covers the marketing, technology and automation side.