How to Read a Mortgage Amortization Schedule
By Jorge Sanchez · April 20, 2026 · 6 min read
An amortization schedule is a complete table of every loan payment — showing exactly how much goes to interest, how much reduces your loan balance, and what you still owe after each payment. Understanding it is key to making smart decisions about your mortgage.
The Four Columns Explained
| Column | What It Shows |
|---|---|
| Payment # | Which payment number (1–360 for a 30-year mortgage) |
| Principal | Amount reducing your loan balance this month |
| Interest | Cost of borrowing this month — this is gone forever |
| Remaining Balance | What you still owe after this payment |
Sample Amortization Table
From a $300,000 loan at 7% over 30 years (payment: $1,996/month):
| Payment | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $246 | $1,750 | $299,754 |
| 12 | $260 | $1,736 | $297,085 |
| 60 (yr 5) | $310 | $1,686 | $285,740 |
| 120 (yr 10) | $374 | $1,622 | $267,879 |
| 180 (yr 15) | $452 | $1,544 | $244,753 |
| 240 (yr 20) | $546 | $1,450 | $213,822 |
| 300 (yr 25) | $659 | $1,337 | $172,172 |
| 360 (yr 30) | $1,984 | $12 | $0 |
Notice: in payment #1, only $246 of your $1,996 goes toward your loan balance. The other $1,750 is pure interest cost.
Why the Interest/Principal Split Shifts Over Time
Each month, interest is calculated on your remaining balance:
Month 1: $300,000 × (0.07 ÷ 12) = $1,750
Month 2: $299,754 × (0.07 ÷ 12) = $1,748.53
As your balance drops (slowly at first), each month's interest charge decreases, so more of your fixed payment goes to principal. This accelerates over time — which is why the last few years of a mortgage fly by.
How to Use the Amortization Schedule to Save Money
- Find your "crossover point": The month where principal finally exceeds interest. For this loan, it's around payment #257 (year 21).
- Target early extra payments: Extra principal paid in year 1 saves far more than the same amount paid in year 25, because interest accrues over the remaining balance × remaining years.
- See what refinancing actually buys you: If you refinance at year 10, you reset to mostly-interest payments. Factor this into the break-even calculation.
- Verify lender accuracy: Your schedule should match your loan documents exactly.
Mortgage Calculator with Amortization Schedule
Generate a full amortization table for your loan and see the impact of extra payments.
Generate My Amortization Schedule →Jorge Sanchez · Live Event Production Specialist · CalQpro