Extra payments save you money!
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Full loan & mortgage amortization schedule — monthly payments, total interest, early payoff with extra payments, and year-by-year breakdown. US & UK.
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An amortization schedule shows you exactly how each monthly payment is split between repaying the principal and paying interest — and how your outstanding balance decreases over time. Use this free calculator for mortgages, personal loans, car loans, and student loans in both the US and UK.
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With a standard repayment (amortizing) loan, your monthly payment stays the same every month. But the split between principal and interest changes dramatically over time. In the early years, the vast majority of your payment goes to interest. By the final years, almost all of it reduces the balance. This is why extra payments made early in a loan term have such a powerful effect — they reduce the principal on which future interest is charged.
In the US, the most common mortgage is a 30-year fixed-rate. As of 2025, average 30-year fixed rates are around 6.5–7.2%. The 15-year fixed typically carries a lower rate (5.8–6.5%) and saves massive amounts in total interest — often 50% or more — though monthly payments are higher. PMI (Private Mortgage Insurance) applies when the down payment is below 20%.
UK mortgages are typically 25-year terms with rates fixed for 2, 5, or 10 years then reverting to the lender's Standard Variable Rate (SVR). As of 2025, 5-year fixed rates are around 4.2–4.8%. UK mortgage interest can be offset (offset mortgage), and most lenders allow overpayments of up to 10%/year without an Early Repayment Charge (ERC). Council Tax replaces property tax. MIG (Mortgage Indemnity Guarantee) is the UK equivalent of PMI.
On a £300,000 mortgage at 4.5% over 25 years (monthly payment: £1,666), paying an extra £200/month saves over £28,000 in interest and cuts 5 years off the term. Use the Extra Payments section above to model your own savings.
Monthly payment = P × [r(1+r)^n] / [(1+r)^n – 1], where P = principal, r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12). Each month: interest portion = remaining balance × r; principal portion = payment − interest.
Yes — significantly. On a $400,000 30-year mortgage at 6.5%, an extra $300/month saves over $90,000 in interest and pays it off 7 years early. The key is that extra principal payments reduce the balance on which future interest accrues, compounding your savings over time.
Bi-weekly payments (half the monthly amount every two weeks) result in 26 half-payments per year — equivalent to 13 full monthly payments instead of 12. This effectively makes one extra payment per year, reducing a 30-year mortgage to about 25–26 years with significant interest savings.
In the US, PMI is typically cancelled automatically when your loan balance reaches 78% of the original home value, or you can request cancellation at 80% LTV. In the UK, MIG is less common now. The amortization table shows you exactly when your balance hits these thresholds.
This calculator uses a standard fully-amortizing (repayment) loan. For interest-only calculations, set the interest-only portion — your monthly payment would simply be loan × (rate ÷ 12) and the balance never reduces until you switch to repayment.
This amortization calculator is for general informational purposes only. Results assume a fixed interest rate and do not include fees, charges, or rate changes. Actual loan terms, rates, PMI thresholds, and early repayment charges vary by lender. FreeUSUKCalculator.com is not a mortgage broker or financial adviser. Always verify your specific loan terms with your lender. Results should not be used for official financial or legal decisions.
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An amortization schedule breaks every loan payment into principal and interest. In early months of a 30-year mortgage at 6%, ~80% of each payment is interest. By year 22, the split inverts — most payment goes to principal. Our amortization calculator generates the full month-by-month schedule for any loan: principal balance, interest paid, cumulative interest, and remaining balance.
Monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1]. After each payment, interest portion = balance × r, principal portion = M − interest, new balance = balance − principal. Repeat n times. For $300,000 at 6% over 360 months: month 1 interest is $1,500, principal $298.65, ending balance $299,701. Month 360 is almost all principal.
On a $300,000, 30-year, 6% mortgage: one extra $100/month payment saves ~$60,000 in interest and pays the loan off 5 years early. One extra annual lump-sum equal to one regular payment ("13th payment") saves about $45,000 and 4 years. Our calculator instantly recomputes the schedule with any extra-payment scenario layered on.
26 biweekly half-payments per year equal 13 monthly payments — one extra per year. Marketed as "biweekly mortgage program" by some lenders, often with a fee. You can replicate it free by sending an extra 1/12 of your monthly payment each month, or one full extra payment in December. Same result; no fee.
Interest-only (IO) mortgages pay no principal during the IO period — common in UK buy-to-let. Balloon loans amortize over a long term but require full balance at a short term (typical: 5/30, 7/30 commercial). Our amortization tool also models IO periods and balloon timing so you see the full cash-flow picture.
The process of paying off a loan with regular equal payments split between principal and interest, where the interest portion shrinks each month.
Because interest is calculated on the outstanding balance — early on, the balance is highest, so the interest charge dominates. The principal portion grows each month.
Yes — and a lot. An extra $100/month on a $300k, 30-year, 6% mortgage saves ~$60,000 in interest.
Paying half your monthly amount every 14 days produces 26 payments = 13 monthly equivalents per year. You can do this free yourself.
Yes — same formula, just shorter terms and higher rates. Auto loans and personal loans amortize identically to mortgages.