Reading the table like a lender
Look at the first row: on a typical 30-year mortgage, year one retires barely 1% of the loan while consuming a full year of payments. Now find the crossover year — where the principal column overtakes interest. On the default inputs it arrives around year 19. Everything before it is mostly rent paid to the bank for the balance; everything after compounds in your favor. That asymmetry is the entire case for early extra payments and explains why restarting a seasoned loan quietly costs so much: a refinance sends you back to the interest-heavy rows.
Two other landmarks worth finding in your own schedule: the year your balance crosses 80% of the purchase price (PMI cancellation territory), and the balance at your realistic selling horizon — that number, not the full term, is what actually matters if you’ll move in seven years.
For the national picture — the payment on a median-priced home at today’s rate, by price, rate, and down payment — see our average mortgage payment page, computed against current Freddie Mac and NAR data.
Frequently asked questions
What is an amortization schedule?
A table showing how each payment on a fixed loan splits between interest and principal, and what balance remains. Early payments are mostly interest; late payments mostly principal. The schedule makes visible what the payment amount hides — where your money actually goes each year.
Why is so much of my early payment interest?
Interest is charged on the current balance, and the balance is biggest at the start. On a 30-year loan at 6.5%, roughly 86% of the first payment is interest. As the balance shrinks, the same payment covers less interest and retires more principal — the curve accelerates all by itself.
When will I reach 20% equity (and drop PMI)?
Find the year in the schedule where the balance falls below 80% of the home’s purchase price — on a 30-year loan with 10% down, that’s typically 5–7 years from payments alone, sooner with appreciation. Lenders must cancel PMI automatically at 78% loan-to-value of the original price.
Does this work for car loans and personal loans too?
Yes — any fixed-rate, fully amortizing loan follows the same math. Enter the amount, rate, and term. It does not model interest-only periods, ARMs after their fixed window, or credit card revolving balances.
How do extra payments change the schedule?
They cut the balance ahead of schedule, so every later row improves: less interest, faster principal, earlier payoff. This page shows the baseline schedule; model extra payments in our mortgage payoff calculator.