How amortization works
With a fixed-rate loan your payment never changes, but its makeup does. Early on, most of each payment is interest; over time the balance falls and more of every dollar goes to principal. The schedule shows the full journey.
Reading the schedule
For 30-year loans the table shows one row per year to stay readable; shorter loans show every month. The balance column is what you still owe after each payment.
What is an amortization schedule?
It is a month-by-month table showing how each payment divides between interest and principal and how your balance declines until the loan is paid off.
Why is so much early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you pay down principal, the interest portion shrinks and the principal portion grows.
How can I pay less interest?
Shorter terms, lower rates, and extra principal payments all reduce total interest. Try the extra-payment calculator to see the effect of paying a bit more each month.
