Mortgage amortization explained

Last updated: 2026-08-14

Amortization is the process of paying a loan down through scheduled payments. The payment may stay level, but the split between interest and principal changes every period.

Why early payments feel slow

Interest is charged on the balance still owed. Early in the loan, that balance is large, so interest takes a bigger share of each payment. Later, the balance is smaller and more of the same payment reaches principal.

What the schedule shows

A schedule usually shows opening balance, interest, payment, principal, extra principal, and closing balance. It lets you check where the loan stands at any payment number.

Use the calculator

Open the mortgage amortization calculator to see the period-by-period schedule, balance chart, and total interest estimate.