Last updated: March 2026
How to Read an Amortization Schedule
An amortization schedule shows you the complete story of your mortgage — every payment, every dollar of interest, and exactly when your loan will be paid off. Understanding it is one of the most powerful financial literacy skills a homeowner can have.
Each row represents one monthly payment. The principal column shows how much of that payment reduces your actual loan balance. The interest column shows how much goes to the lender as the cost of borrowing. The balance column shows what you still owe.
The most striking pattern is how the principal-to-interest ratio changes over time. On a $280,000 loan at 6.75%, your first payment of $1,817 splits as $242 principal / $1,575 interest. By payment 240 (year 20), it flips to roughly $908 principal / $909 interest. The last payment is almost entirely principal.
This is why extra payments early in the loan are so powerful. An extra $200/month in year 1 saves far more than the same amount in year 25, because it reduces the balance that future interest is calculated on. Think of it as compound savings working in your favor.
The schedule also reveals when PMI drops off (highlighted in the table). If you put less than 20% down, tracking the PMI removal month can save you money — you may be able to request early removal once your home appreciates enough to push the LTV below 80%.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a complete table showing every monthly payment over the life of a loan. Each row breaks down how much goes to principal, how much to interest, and the remaining balance after that payment. It reveals the true cost of a mortgage over time.
Why are early payments mostly interest?
Interest is calculated on the remaining balance each month. With a large initial balance (say $280,000), the interest charge is high ($1,575/month at 6.75%). As you pay down the balance, less interest accrues, and more of each payment goes to principal. This is the nature of amortization.
What is the crossover point?
The crossover point is the month when more of your payment goes to principal than interest. On a 30-year mortgage at 6.75%, this happens around year 20. On a 15-year mortgage, it happens much sooner — around year 6-7. Extra payments accelerate the crossover significantly.
How do extra payments change the amortization schedule?
Extra payments go directly to principal, reducing the balance faster. This means less interest accrues each month, the crossover point arrives sooner, and the loan pays off early. Even $100/month extra can eliminate years from a 30-year mortgage.
Can I download or print my amortization schedule?
Yes. Use the 'Download CSV' button to get the full schedule as a spreadsheet-compatible file. You can also use 'Print Summary' for a formatted print view with loan details and the first year of payments.
How accurate is this amortization schedule?
This calculator uses the standard amortization formula used by lenders. The schedule matches what your lender would produce for the same inputs. Actual payments may vary slightly due to escrow adjustments, rate changes (for ARMs), or rounding differences.