Amortization calculator
An amortization schedule shows how each payment splits between interest and the loan itself. Enter the loan and see it year by year.
Interest versus principal
Each month, the lender figures its charge from the amount you still owe. It takes that balance times the yearly rate, divided by 12.
Karen borrows the $15,000 example. In month one, she still owes the full $15,000, so interest is at its highest.
Each payment lowers her balance. That makes the next month’s interest a little smaller, so more of the same fixed payment goes to the loan.
In Karen’s first $497 payment, $149 goes to interest and $349 goes to the loan. The early payments carry the most interest. Enter your own balance and rate above to see your first month’s split.
The balance left each year
Extra money paid early saves more than extra money paid late. It cuts what you owe while interest is still charged on a big number.
If Karen adds $100 extra each month on her $15,000 loan, it ends 6 months early and saves about $575 in interest. Add it early, while the balance is still high.
The CFPB makes the same point about card debt. The longer a card balance sits, the more it costs (CFPB on consolidating card debt).
Call and the specialist goes through your payment schedule with you, month by month.
How this amortization calculator figures it
Each month, interest equals the balance left times the yearly rate divided by 12. The rest of the fixed payment goes to the loan, so the balance drops a little faster every month. The payment is the amount times r, divided by 1 minus (1 + r) raised to the negative number of months. The default rate is 11.9%, the Federal Reserve’s bank average for a 24-month personal loan, from its G.19 release covering August 2026.
This amortization calculator shows $15,000 at 11.9% for three years costs $497 a month, $2,910 of it interest (Federal Reserve G.19). Year 1 sends $1,549 to interest, more than half the total. So the first year is where a lower rate pays off most.
The first thing to do is call a specialist. They check fees too, since your $497 assumes none, while Upstart’s example carries 8.15% and SoFi’s can reach 7%. Put your own amount, rate and years in the calculator, then call and we compare the schedule with your cards.
Worked examples
- $15,000 at 11.9% for 3 years costs $497 a month. Month 1 sends $149 to interest and $349 to the loan, and the last month sends $5 to interest. Total interest is $2,910.
- $30,000 at 7.99% for 5 years costs $608 a month. Month 1 sends $200 to interest and $408 to the loan, and the last month sends $4 to interest. Total interest is $6,489.
- $8,000 at 19.99% for 4 years costs $243 a month. Month 1 sends $133 to interest and $110 to the loan, and the last month sends $4 to interest. Total interest is $3,683.
About this calculator
How is each month’s interest figured?
Take the balance you still owe and multiply it by the yearly rate. Then divide that by 12.
Why is interest highest in the first month?
You still owe the full amount then. In Karen’s example, $149 of her first $497 payment goes to interest.
Where does the 11.9% starting rate come from?
It is the commercial bank average for a 24-month personal loan. It comes from the Federal Reserve’s G.19 report for August 2026.
Is it better to pay extra early or late?
Early is better. Extra paid early cuts the balance while interest is still charged on a big number.
Lower your first year’s interest
You just saw how much of each early payment goes to interest instead of the loan. On $15,000 at 11.9%, year one sends $1,549 to interest, more than half the $2,910 total. Call now and a specialist goes through your cards for free and compares the loans that fit.