How the schedule works
Where each payment goes
On a normal fixed-rate loan the payment never changes. Each month, the interest is what you owe multiplied by the monthly rate. Whatever is left of your payment comes off the balance, so next month starts a little lower.
Same payment, different split
That shifting split is what amortization means. Early on, most of your money is interest, because you owe a lot. Near the end, almost all of it goes onto the loan. The table shows every month, or every year, and lets you download it or compare paying extra against paying every two weeks.
Why extra payments do more than they look like they should
Putting $100 onto the balance does not just remove $100 from the end. It also means you are never charged interest on that $100 again, in any month that is left. Do it every month and the effect stacks up, which is how a steady extra payment takes years off a long loan.
Before you change anything
- Check that your lender puts extra money onto the balance.
- Check whether your loan charges you for paying it off early.
- If you use a two-week plan, ask when each half is credited and what it costs.
- Keep your emergency savings first. The mortgage can wait.
Method used
The methodology page has the formulas, the limits and what the two-week comparison assumes.