Know Exactly What You Owe — Your Loan Balance at Any Moment

📋 Key Takeaways

• • Early payments are mostly interest — the balance drops slowly at first
• • Extra payments go 100% to principal and compound into huge savings
• • $200/mo extra on a $350K mortgage saves ~$68K and pays off 5 years early
• • Use this calculator to see your exact remaining balance at any month

💡 Did You Know?

📖 How Amortization Works

Each payment splits into interest (based on current balance) and principal. Early on, the balance is high so interest dominates. As you pay down principal, more of each payment goes to principal. The formula: Balance = P × [(1+r)^n - (1+r)^p] / [(1+r)^n - 1], where P = principal, r = monthly rate, n = total months, p = payments made.

🎯 Extra Payment Strategy

⚖️ When to Refinance

Refinancing makes sense when the new rate is ~0.75%+ lower and you plan to stay 5+ years. If you're 20 years into a 30yr loan, refinancing resets the clock — you may pay more total interest even at a lower rate.

📅 Understanding Your Amortization Schedule

An amortization schedule shows each payment's split between principal and interest. In month 1 of a $350K mortgage at 6.5%, about $1,896 goes to interest and only $316 to principal. By year 25, that ratio flips — most of each payment goes to principal. The "Remaining Balance Over Time" chart in this calculator visualizes this curve.

The "Principal vs Interest Paid to Date" doughnut chart shows how much of your total payments so far went to each. The "Amortization Progress" bar chart shows paid vs remaining — a quick view of how far you've come.

📚 Official Sources

❓ Frequently Asked Questions