Why does interest decrease over time?

As principal is paid down, less interest accrues, so more of each payment goes to principal.

Amortization Calculator

Generate a full amortization schedule for your loan

Loan Amount

Interest Rate

Loan Term

years

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Each payment splits between interest (balance × rate) and principal (payment - interest).

00k at 6% for 30yr

Monthly

,199.10. Year 1: ~

1,957 interest, ~

,432 principal.

See how loan payments split between principal and interest over time with an amortization breakdown.

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