Interest vs Principal Split Calculator
See how each payment is divided between interest and principal over the life of your loan
Loan Details
$25,000
7.5%
5 years
Payment Breakdown
Monthly Payment
Total Payment
$0
Principal
$0
Interest
$0
First Payment
—
Total Loan Cost
Total Principal
$0
Total Interest
$0
Total Paid
$0
Payoff Date
—
Visualization
Amortization Table
Yearly Summary
Payment Composition Over Time
See how your payment allocation changes from mostly interest to mostly principal
Interest
Principal
Amortization Schedule
Detailed breakdown of each payment throughout the loan term
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Yearly Summary
Annual breakdown of payments, principal, and interest
| Year | Payments | Principal | Interest | Balance |
|---|
About This Calculator
This calculator shows you how each loan payment is split between principal and interest. In the early years of a loan, most of your payment goes toward interest rather than principal. This is known as loan amortization.
How Loan Amortization Works
With each payment you make on an amortizing loan:
- Interest is calculated based on the current loan balance
- Principal is the remainder of the payment after interest
- As the loan balance decreases, the interest portion of each payment decreases
- As the interest decreases, the principal portion increases
Why Understanding This Matters
- Shows the true cost of borrowing over time
- Helps you understand how extra payments reduce your loan term
- Demonstrates why shorter loan terms save you money
- Illustrates the benefit of making additional principal payments