How to read your amortization schedule
An amortization schedule shows how each payment splits between principal (reducing your balance) and interest (the lender's fee). In the early years, the vast majority goes to interest. This gradually reverses over the life of the loan.
Understanding your amortization schedule helps you see why making extra payments early in the loan is so powerful — each dollar of principal removed also eliminates all future interest that would have been charged on it.
Frequently asked questions
What is a mortgage amortization schedule?
An amortization schedule shows every payment broken into principal and interest. Early payments are mostly interest; later payments are mostly principal. The full schedule reveals your exact payoff path.
How much of my early payments go to interest?
On a 30-year loan at 6.75%, roughly 75–80% of each early payment goes to interest. By year 10 the ratio shifts to about 60% interest. By year 25, more than half goes to principal.
How much total interest do I pay on a 30-year mortgage?
On a $320,000 loan at 6.75% for 30 years, you pay approximately $426,000 in total interest — more than the original loan amount.