How to Read an Amortization Schedule
What each column of an amortization schedule actually means, and how to use it to check a lender's numbers or plan an extra payment.
An amortization schedule is a row-by-row (or year-by-year) breakdown of a loan's life: how much of each payment covers interest, how much reduces the balance, and what's left owed after each one.
The four columns that matter
- Payment: the fixed amount due each period — the same number every time on a standard fixed-rate loan.
- Interest paid: that period's balance times the periodic interest rate — this shrinks over time as the balance drops.
- Principal paid: whatever's left of the payment after interest — this grows over time as less is needed for interest.
- Remaining balance: what's still owed after that payment — this is what next period's interest gets calculated on.
What to actually do with it
Compare the payment and rate on your schedule against your loan documents to confirm a lender's numbers match what you agreed to. If you're considering an extra payment, look at how much interest the schedule shows for the years you'd be skipping — that's roughly what an extra payment made now would save.
The Amortization Calculator generates this schedule instantly and lets you add an extra payment to see the exact difference.