See exactly how a fixed-rate loan is paid off. Enter the loan amount, term, and rate to get the monthly payment, total interest, payoff date, and a full schedule that splits every payment into principal and interest. Add optional extra payments to see how much faster — and cheaper — the loan clears.
How a payment splits over time
| Stage | Interest portion | Principal portion |
|---|---|---|
| First payment | Largest | Smallest |
| Midway | Roughly even | Roughly even |
| Final payment | Smallest | Largest |
Examples
$200,000 · 15 years · 6%
A $200,000 loan at 6% over 15 years has a monthly payment of $1,687.71. Over 180 payments you repay $303,788.46, of which $103,788.46 is interest.
Same loan + $200 extra per month
Adding $200 to every payment clears the same loan in about 152 months instead of 180 — roughly 28 months early — and cuts total interest by about $18,230.
Formula
Each fixed monthly payment covers that month's interest first; the rest reduces the balance, so the interest portion shrinks every month. For a principal P, monthly rate r (annual rate ÷ 12), and n months:
Monthly payment = P × r / (1 − (1 + r)^−n)
Each month: interest = balance × r
principal = payment − interest (+ any extra payment)
balance = balance − principal
Assumptions and limits
The schedule assumes a fixed nominal rate, monthly compounding, month-end payments, and no fees, escrow, late charges, payment holidays, or rate changes. Extra amounts are assumed to be accepted and applied immediately to principal with no prepayment charge. Confirm the lender's application rules; a servicer may instead advance the due date unless instructed otherwise.