How is an amortization schedule calculated?

For each period, interest = current balance × periodic rate. The principal portion of the payment = total payment − interest. Subtract the principal from the balance and repeat for the next period. The fixed payment is calculated so the balance hits zero on the last period.

Why does interest decrease over the life of a loan?

Interest is charged on the remaining balance. As each payment reduces principal, the next period's interest is computed on a smaller balance, so a larger share of each payment goes to principal. This is why early payments are mostly interest and late payments are mostly principal.

How do extra payments affect an amortization schedule?

Extra payments apply directly to principal, which reduces every future interest charge. This shortens the loan term and lowers total interest, but it doesn't lower the required monthly payment unless you refinance or recast the loan.

What is the difference between amortization and simple interest?

Amortizing loans recalculate interest each period on the remaining balance (so principal grows over time). Simple-interest installment loans compute total interest up front and divide it evenly across payments. Both are common in auto lending — read the contract carefully.

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Amortization Calculator

Generate a full amortization schedule showing principal and interest per period.

Loan Inputs

Loan AmountInterest Rate (% / yr)Term (years)Start Date (optional)

Monthly Payment

$1,629.81

360 payments • $586,732.67 total

Total Interest

$336,732.67

Interest / Principal

134.69%

Amortization Schedule

#	Date	Principal	Interest	Balance
1	Month 1	$213.15	$1,416.67	$249,786.85
2	Month 2	$214.35	$1,415.46	$249,572.50
3	Month 3	$215.57	$1,414.24	$249,356.93
4	Month 4	$216.79	$1,413.02	$249,140.14
5	Month 5	$218.02	$1,411.79	$248,922.12
6	Month 6	$219.25	$1,410.56	$248,702.87
7	Month 7	$220.50	$1,409.32	$248,482.37
8	Month 8	$221.75	$1,408.07	$248,260.62
9	Month 9	$223.00	$1,406.81	$248,037.62
10	Month 10	$224.27	$1,405.55	$247,813.36
11	Month 11	$225.54	$1,404.28	$247,587.82
12	Month 12	$226.82	$1,403.00	$247,361.00
13	Month 13	$228.10	$1,401.71	$247,132.90
14	Month 14	$229.39	$1,400.42	$246,903.51
15	Month 15	$230.69	$1,399.12	$246,672.82
16	Month 16	$232.00	$1,397.81	$246,440.82
17	Month 17	$233.32	$1,396.50	$246,207.50
18	Month 18	$234.64	$1,395.18	$245,972.86
19	Month 19	$235.97	$1,393.85	$245,736.90
20	Month 20	$237.30	$1,392.51	$245,499.59
21	Month 21	$238.65	$1,391.16	$245,260.94
22	Month 22	$240.00	$1,389.81	$245,020.94
23	Month 23	$241.36	$1,388.45	$244,779.58
24	Month 24	$242.73	$1,387.08	$244,536.85
25	Month 25	$244.10	$1,385.71	$244,292.75
26	Month 26	$245.49	$1,384.33	$244,047.26
27	Month 27	$246.88	$1,382.93	$243,800.38
28	Month 28	$248.28	$1,381.54	$243,552.11
29	Month 29	$249.68	$1,380.13	$243,302.42
30	Month 30	$251.10	$1,378.71	$243,051.32
31	Month 31	$252.52	$1,377.29	$242,798.80
32	Month 32	$253.95	$1,375.86	$242,544.85
33	Month 33	$255.39	$1,374.42	$242,289.45
34	Month 34	$256.84	$1,372.97	$242,032.62
35	Month 35	$258.29	$1,371.52	$241,774.32
36	Month 36	$259.76	$1,370.05	$241,514.56
37	Month 37	$261.23	$1,368.58	$241,253.33
38	Month 38	$262.71	$1,367.10	$240,990.62
39	Month 39	$264.20	$1,365.61	$240,726.42
40	Month 40	$265.70	$1,364.12	$240,460.72
41	Month 41	$267.20	$1,362.61	$240,193.52
42	Month 42	$268.72	$1,361.10	$239,924.81
43	Month 43	$270.24	$1,359.57	$239,654.57
44	Month 44	$271.77	$1,358.04	$239,382.80
45	Month 45	$273.31	$1,356.50	$239,109.49
46	Month 46	$274.86	$1,354.95	$238,834.63
47	Month 47	$276.42	$1,353.40	$238,558.21
48	Month 48	$277.98	$1,351.83	$238,280.23
49	Month 49	$279.56	$1,350.25	$238,000.67
50	Month 50	$281.14	$1,348.67	$237,719.53
51	Month 51	$282.74	$1,347.08	$237,436.79
52	Month 52	$284.34	$1,345.48	$237,152.45
53	Month 53	$285.95	$1,343.86	$236,866.50
54	Month 54	$287.57	$1,342.24	$236,578.93
55	Month 55	$289.20	$1,340.61	$236,289.74
56	Month 56	$290.84	$1,338.98	$235,998.90
57	Month 57	$292.49	$1,337.33	$235,706.41
58	Month 58	$294.14	$1,335.67	$235,412.27
59	Month 59	$295.81	$1,334.00	$235,116.46
60	Month 60	$297.49	$1,332.33	$234,818.97
61	Month 61	$299.17	$1,330.64	$234,519.80
62	Month 62	$300.87	$1,328.95	$234,218.93
63	Month 63	$302.57	$1,327.24	$233,916.36
64	Month 64	$304.29	$1,325.53	$233,612.07
65	Month 65	$306.01	$1,323.80	$233,306.06
66	Month 66	$307.75	$1,322.07	$232,998.32
67	Month 67	$309.49	$1,320.32	$232,688.83
68	Month 68	$311.24	$1,318.57	$232,377.58
69	Month 69	$313.01	$1,316.81	$232,064.58
70	Month 70	$314.78	$1,315.03	$231,749.80
71	Month 71	$316.56	$1,313.25	$231,433.23
72	Month 72	$318.36	$1,311.45	$231,114.88
73	Month 73	$320.16	$1,309.65	$230,794.71
74	Month 74	$321.98	$1,307.84	$230,472.74
75	Month 75	$323.80	$1,306.01	$230,148.94
76	Month 76	$325.64	$1,304.18	$229,823.30
77	Month 77	$327.48	$1,302.33	$229,495.82
78	Month 78	$329.34	$1,300.48	$229,166.48
79	Month 79	$331.20	$1,298.61	$228,835.28
80	Month 80	$333.08	$1,296.73	$228,502.20
81	Month 81	$334.97	$1,294.85	$228,167.23
82	Month 82	$336.87	$1,292.95	$227,830.37
83	Month 83	$338.77	$1,291.04	$227,491.59
84	Month 84	$340.69	$1,289.12	$227,150.90
85	Month 85	$342.62	$1,287.19	$226,808.28
86	Month 86	$344.57	$1,285.25	$226,463.71
87	Month 87	$346.52	$1,283.29	$226,117.19
88	Month 88	$348.48	$1,281.33	$225,768.71
89	Month 89	$350.46	$1,279.36	$225,418.25
90	Month 90	$352.44	$1,277.37	$225,065.81
91	Month 91	$354.44	$1,275.37	$224,711.37
92	Month 92	$356.45	$1,273.36	$224,354.92
93	Month 93	$358.47	$1,271.34	$223,996.45
94	Month 94	$360.50	$1,269.31	$223,635.95
95	Month 95	$362.54	$1,267.27	$223,273.41
96	Month 96	$364.60	$1,265.22	$222,908.81
97	Month 97	$366.66	$1,263.15	$222,542.15
98	Month 98	$368.74	$1,261.07	$222,173.41
99	Month 99	$370.83	$1,258.98	$221,802.58
100	Month 100	$372.93	$1,256.88	$221,429.65
101	Month 101	$375.04	$1,254.77	$221,054.60
102	Month 102	$377.17	$1,252.64	$220,677.43
103	Month 103	$379.31	$1,250.51	$220,298.12
104	Month 104	$381.46	$1,248.36	$219,916.67
105	Month 105	$383.62	$1,246.19	$219,533.05
106	Month 106	$385.79	$1,244.02	$219,147.26
107	Month 107	$387.98	$1,241.83	$218,759.28
108	Month 108	$390.18	$1,239.64	$218,369.10
109	Month 109	$392.39	$1,237.42	$217,976.71
110	Month 110	$394.61	$1,235.20	$217,582.10
111	Month 111	$396.85	$1,232.97	$217,185.25
112	Month 112	$399.10	$1,230.72	$216,786.16
113	Month 113	$401.36	$1,228.45	$216,384.80
114	Month 114	$403.63	$1,226.18	$215,981.17
115	Month 115	$405.92	$1,223.89	$215,575.25
116	Month 116	$408.22	$1,221.59	$215,167.03
117	Month 117	$410.53	$1,219.28	$214,756.49
118	Month 118	$412.86	$1,216.95	$214,343.63
119	Month 119	$415.20	$1,214.61	$213,928.43
120	Month 120	$417.55	$1,212.26	$213,510.88
121	Month 121	$419.92	$1,209.90	$213,090.96
122	Month 122	$422.30	$1,207.52	$212,668.67
123	Month 123	$424.69	$1,205.12	$212,243.98
124	Month 124	$427.10	$1,202.72	$211,816.88
125	Month 125	$429.52	$1,200.30	$211,387.36
126	Month 126	$431.95	$1,197.86	$210,955.41
127	Month 127	$434.40	$1,195.41	$210,521.01
128	Month 128	$436.86	$1,192.95	$210,084.15
129	Month 129	$439.34	$1,190.48	$209,644.82
130	Month 130	$441.83	$1,187.99	$209,202.99
131	Month 131	$444.33	$1,185.48	$208,758.66
132	Month 132	$446.85	$1,182.97	$208,311.81
133	Month 133	$449.38	$1,180.43	$207,862.43
134	Month 134	$451.93	$1,177.89	$207,410.51
135	Month 135	$454.49	$1,175.33	$206,956.02
136	Month 136	$457.06	$1,172.75	$206,498.96
137	Month 137	$459.65	$1,170.16	$206,039.31
138	Month 138	$462.26	$1,167.56	$205,577.05
139	Month 139	$464.88	$1,164.94	$205,112.17
140	Month 140	$467.51	$1,162.30	$204,644.66
141	Month 141	$470.16	$1,159.65	$204,174.50
142	Month 142	$472.82	$1,156.99	$203,701.68
143	Month 143	$475.50	$1,154.31	$203,226.18
144	Month 144	$478.20	$1,151.61	$202,747.98
145	Month 145	$480.91	$1,148.91	$202,267.07
146	Month 146	$483.63	$1,146.18	$201,783.44
147	Month 147	$486.37	$1,143.44	$201,297.06
148	Month 148	$489.13	$1,140.68	$200,807.93
149	Month 149	$491.90	$1,137.91	$200,316.03
150	Month 150	$494.69	$1,135.12	$199,821.34
151	Month 151	$497.49	$1,132.32	$199,323.85
152	Month 152	$500.31	$1,129.50	$198,823.54
153	Month 153	$503.15	$1,126.67	$198,320.39
154	Month 154	$506.00	$1,123.82	$197,814.40
155	Month 155	$508.86	$1,120.95	$197,305.53
156	Month 156	$511.75	$1,118.06	$196,793.78
157	Month 157	$514.65	$1,115.16	$196,279.14
158	Month 158	$517.56	$1,112.25	$195,761.57
159	Month 159	$520.50	$1,109.32	$195,241.07
160	Month 160	$523.45	$1,106.37	$194,717.63
161	Month 161	$526.41	$1,103.40	$194,191.21
162	Month 162	$529.40	$1,100.42	$193,661.82
163	Month 163	$532.40	$1,097.42	$193,129.42
164	Month 164	$535.41	$1,094.40	$192,594.01
165	Month 165	$538.45	$1,091.37	$192,055.56
166	Month 166	$541.50	$1,088.31	$191,514.06
167	Month 167	$544.57	$1,085.25	$190,969.50
168	Month 168	$547.65	$1,082.16	$190,421.84
169	Month 169	$550.76	$1,079.06	$189,871.09
170	Month 170	$553.88	$1,075.94	$189,317.21
171	Month 171	$557.02	$1,072.80	$188,760.20
172	Month 172	$560.17	$1,069.64	$188,200.02
173	Month 173	$563.35	$1,066.47	$187,636.68
174	Month 174	$566.54	$1,063.27	$187,070.14
175	Month 175	$569.75	$1,060.06	$186,500.39
176	Month 176	$572.98	$1,056.84	$185,927.41
177	Month 177	$576.22	$1,053.59	$185,351.19
178	Month 178	$579.49	$1,050.32	$184,771.70
179	Month 179	$582.77	$1,047.04	$184,188.93
180	Month 180	$586.08	$1,043.74	$183,602.85
181	Month 181	$589.40	$1,040.42	$183,013.45
182	Month 182	$592.74	$1,037.08	$182,420.72
183	Month 183	$596.10	$1,033.72	$181,824.62
184	Month 184	$599.47	$1,030.34	$181,225.15
185	Month 185	$602.87	$1,026.94	$180,622.28
186	Month 186	$606.29	$1,023.53	$180,015.99
187	Month 187	$609.72	$1,020.09	$179,406.27
188	Month 188	$613.18	$1,016.64	$178,793.09
189	Month 189	$616.65	$1,013.16	$178,176.44
190	Month 190	$620.15	$1,009.67	$177,556.29
191	Month 191	$623.66	$1,006.15	$176,932.63
192	Month 192	$627.19	$1,002.62	$176,305.44
193	Month 193	$630.75	$999.06	$175,674.69
194	Month 194	$634.32	$995.49	$175,040.36
195	Month 195	$637.92	$991.90	$174,402.45
196	Month 196	$641.53	$988.28	$173,760.91
197	Month 197	$645.17	$984.65	$173,115.75
198	Month 198	$648.82	$980.99	$172,466.92
199	Month 199	$652.50	$977.31	$171,814.42
200	Month 200	$656.20	$973.62	$171,158.22
201	Month 201	$659.92	$969.90	$170,498.31
202	Month 202	$663.66	$966.16	$169,834.65
203	Month 203	$667.42	$962.40	$169,167.24
204	Month 204	$671.20	$958.61	$168,496.04
205	Month 205	$675.00	$954.81	$167,821.04
206	Month 206	$678.83	$950.99	$167,142.21
207	Month 207	$682.67	$947.14	$166,459.53
208	Month 208	$686.54	$943.27	$165,772.99
209	Month 209	$690.43	$939.38	$165,082.56
210	Month 210	$694.35	$935.47	$164,388.21
211	Month 211	$698.28	$931.53	$163,689.93
212	Month 212	$702.24	$927.58	$162,987.70
213	Month 213	$706.22	$923.60	$162,281.48
214	Month 214	$710.22	$919.60	$161,571.26
215	Month 215	$714.24	$915.57	$160,857.02
216	Month 216	$718.29	$911.52	$160,138.73
217	Month 217	$722.36	$907.45	$159,416.37
218	Month 218	$726.45	$903.36	$158,689.92
219	Month 219	$730.57	$899.24	$157,959.35
220	Month 220	$734.71	$895.10	$157,224.64
221	Month 221	$738.87	$890.94	$156,485.76
222	Month 222	$743.06	$886.75	$155,742.70
223	Month 223	$747.27	$882.54	$154,995.43
224	Month 224	$751.51	$878.31	$154,243.93
225	Month 225	$755.76	$874.05	$153,488.16
226	Month 226	$760.05	$869.77	$152,728.12
227	Month 227	$764.35	$865.46	$151,963.76
228	Month 228	$768.68	$861.13	$151,195.08
229	Month 229	$773.04	$856.77	$150,422.04
230	Month 230	$777.42	$852.39	$149,644.62
231	Month 231	$781.83	$847.99	$148,862.79
232	Month 232	$786.26	$843.56	$148,076.53
233	Month 233	$790.71	$839.10	$147,285.82
234	Month 234	$795.19	$834.62	$146,490.63
235	Month 235	$799.70	$830.11	$145,690.93
236	Month 236	$804.23	$825.58	$144,886.70
237	Month 237	$808.79	$821.02	$144,077.91
238	Month 238	$813.37	$816.44	$143,264.54
239	Month 239	$817.98	$811.83	$142,446.56
240	Month 240	$822.62	$807.20	$141,623.94
241	Month 241	$827.28	$802.54	$140,796.66
242	Month 242	$831.97	$797.85	$139,964.70
243	Month 243	$836.68	$793.13	$139,128.02
244	Month 244	$841.42	$788.39	$138,286.60
245	Month 245	$846.19	$783.62	$137,440.41
246	Month 246	$850.98	$778.83	$136,589.42
247	Month 247	$855.81	$774.01	$135,733.62
248	Month 248	$860.66	$769.16	$134,872.96
249	Month 249	$865.53	$764.28	$134,007.43
250	Month 250	$870.44	$759.38	$133,136.99
251	Month 251	$875.37	$754.44	$132,261.62
252	Month 252	$880.33	$749.48	$131,381.29
253	Month 253	$885.32	$744.49	$130,495.97
254	Month 254	$890.34	$739.48	$129,605.64
255	Month 255	$895.38	$734.43	$128,710.25
256	Month 256	$900.45	$729.36	$127,809.80
257	Month 257	$905.56	$724.26	$126,904.24
258	Month 258	$910.69	$719.12	$125,993.55
259	Month 259	$915.85	$713.96	$125,077.70
260	Month 260	$921.04	$708.77	$124,156.66
261	Month 261	$926.26	$703.55	$123,230.41
262	Month 262	$931.51	$698.31	$122,298.90
263	Month 263	$936.79	$693.03	$121,362.11
264	Month 264	$942.09	$687.72	$120,420.02
265	Month 265	$947.43	$682.38	$119,472.59
266	Month 266	$952.80	$677.01	$118,519.78
267	Month 267	$958.20	$671.61	$117,561.58
268	Month 268	$963.63	$666.18	$116,597.95
269	Month 269	$969.09	$660.72	$115,628.86
270	Month 270	$974.58	$655.23	$114,654.28
271	Month 271	$980.11	$649.71	$113,674.17
272	Month 272	$985.66	$644.15	$112,688.51
273	Month 273	$991.24	$638.57	$111,697.27
274	Month 274	$996.86	$632.95	$110,700.41
275	Month 275	$1,002.51	$627.30	$109,697.90
276	Month 276	$1,008.19	$621.62	$108,689.70
277	Month 277	$1,013.90	$615.91	$107,675.80
278	Month 278	$1,019.65	$610.16	$106,656.15
279	Month 279	$1,025.43	$604.38	$105,630.72
280	Month 280	$1,031.24	$598.57	$104,599.48
281	Month 281	$1,037.08	$592.73	$103,562.40
282	Month 282	$1,042.96	$586.85	$102,519.44
283	Month 283	$1,048.87	$580.94	$101,470.57
284	Month 284	$1,054.81	$575.00	$100,415.76
285	Month 285	$1,060.79	$569.02	$99,354.97
286	Month 286	$1,066.80	$563.01	$98,288.17
287	Month 287	$1,072.85	$556.97	$97,215.32
288	Month 288	$1,078.93	$550.89	$96,136.39
289	Month 289	$1,085.04	$544.77	$95,051.35
290	Month 290	$1,091.19	$538.62	$93,960.17
291	Month 291	$1,097.37	$532.44	$92,862.79
292	Month 292	$1,103.59	$526.22	$91,759.20
293	Month 293	$1,109.84	$519.97	$90,649.36
294	Month 294	$1,116.13	$513.68	$89,533.23
295	Month 295	$1,122.46	$507.35	$88,410.77
296	Month 296	$1,128.82	$500.99	$87,281.95
297	Month 297	$1,135.22	$494.60	$86,146.73
298	Month 298	$1,141.65	$488.16	$85,005.09
299	Month 299	$1,148.12	$481.70	$83,856.97
300	Month 300	$1,154.62	$475.19	$82,702.34
301	Month 301	$1,161.17	$468.65	$81,541.18
302	Month 302	$1,167.75	$462.07	$80,373.43
303	Month 303	$1,174.36	$455.45	$79,199.07
304	Month 304	$1,181.02	$448.79	$78,018.05
305	Month 305	$1,187.71	$442.10	$76,830.34
306	Month 306	$1,194.44	$435.37	$75,635.90
307	Month 307	$1,201.21	$428.60	$74,434.69
308	Month 308	$1,208.02	$421.80	$73,226.67
309	Month 309	$1,214.86	$414.95	$72,011.81
310	Month 310	$1,221.75	$408.07	$70,790.06
311	Month 311	$1,228.67	$401.14	$69,561.40
312	Month 312	$1,235.63	$394.18	$68,325.76
313	Month 313	$1,242.63	$387.18	$67,083.13
314	Month 314	$1,249.68	$380.14	$65,833.45
315	Month 315	$1,256.76	$373.06	$64,576.70
316	Month 316	$1,263.88	$365.93	$63,312.82
317	Month 317	$1,271.04	$358.77	$62,041.78
318	Month 318	$1,278.24	$351.57	$60,763.54
319	Month 319	$1,285.49	$344.33	$59,478.05
320	Month 320	$1,292.77	$337.04	$58,185.28
321	Month 321	$1,300.10	$329.72	$56,885.18
322	Month 322	$1,307.46	$322.35	$55,577.72
323	Month 323	$1,314.87	$314.94	$54,262.85
324	Month 324	$1,322.32	$307.49	$52,940.52
325	Month 325	$1,329.82	$300.00	$51,610.71
326	Month 326	$1,337.35	$292.46	$50,273.35
327	Month 327	$1,344.93	$284.88	$48,928.42
328	Month 328	$1,352.55	$277.26	$47,575.87
329	Month 329	$1,360.22	$269.60	$46,215.66
330	Month 330	$1,367.92	$261.89	$44,847.73
331	Month 331	$1,375.68	$254.14	$43,472.06
332	Month 332	$1,383.47	$246.34	$42,088.58
333	Month 333	$1,391.31	$238.50	$40,697.27
334	Month 334	$1,399.20	$230.62	$39,298.08
335	Month 335	$1,407.12	$222.69	$37,890.95
336	Month 336	$1,415.10	$214.72	$36,475.86
337	Month 337	$1,423.12	$206.70	$35,052.74
338	Month 338	$1,431.18	$198.63	$33,621.56
339	Month 339	$1,439.29	$190.52	$32,182.27
340	Month 340	$1,447.45	$182.37	$30,734.82
341	Month 341	$1,455.65	$174.16	$29,279.17
342	Month 342	$1,463.90	$165.92	$27,815.28
343	Month 343	$1,472.19	$157.62	$26,343.08
344	Month 344	$1,480.54	$149.28	$24,862.55
345	Month 345	$1,488.93	$140.89	$23,373.62
346	Month 346	$1,497.36	$132.45	$21,876.26
347	Month 347	$1,505.85	$123.97	$20,370.41
348	Month 348	$1,514.38	$115.43	$18,856.03
349	Month 349	$1,522.96	$106.85	$17,333.07
350	Month 350	$1,531.59	$98.22	$15,801.48
351	Month 351	$1,540.27	$89.54	$14,261.21
352	Month 352	$1,549.00	$80.81	$12,712.21
353	Month 353	$1,557.78	$72.04	$11,154.43
354	Month 354	$1,566.60	$63.21	$9,587.82
355	Month 355	$1,575.48	$54.33	$8,012.34
356	Month 356	$1,584.41	$45.40	$6,427.93
357	Month 357	$1,593.39	$36.42	$4,834.54
358	Month 358	$1,602.42	$27.40	$3,232.13
359	Month 359	$1,611.50	$18.32	$1,620.63
360	Month 360	$1,620.63	$9.18	$0.00

What is the Amortization Calculator?

An amortization calculator is a free online tool that builds a full payment schedule showing how each payment splits between principal and interest, plus the remaining loan balance after each period. Use it to see exactly how much interest you'll pay each month, year, or over the life of any loan — and how extra payments change the schedule.

Amortization Calculator formula

Each period: interest = remaining balance × periodic rate; principal = payment − interest; new balance = old balance − principal. The fixed payment is M = P × [r(1+r)^n] / [(1+r)^n − 1]. Extra payments apply directly to principal, shortening the term and reducing total interest.

How to use the Amortization calculator

1Enter the loan amount.
2Enter the annual interest rate.
3Enter the loan term in years or months.
4Optionally add an extra monthly or one-time principal payment.
5Review the amortization schedule by month or by year.

Example calculation

A $200,000 loan at 6% interest over 30 years has a monthly payment of $1,199.10. The first payment splits into $1,000 of interest and $199.10 of principal. Adding $200 per month in extra principal pays off the loan in 252 months (about 21 years instead of 30) and saves roughly $79,100 in interest.

Frequently asked questions

How is an amortization schedule calculated?: For each period, interest = current balance × periodic rate. The principal portion of the payment = total payment − interest. Subtract the principal from the balance and repeat for the next period. The fixed payment is calculated so the balance hits zero on the last period.
Why does interest decrease over the life of a loan?: Interest is charged on the remaining balance. As each payment reduces principal, the next period's interest is computed on a smaller balance, so a larger share of each payment goes to principal. This is why early payments are mostly interest and late payments are mostly principal.
How do extra payments affect an amortization schedule?: Extra payments apply directly to principal, which reduces every future interest charge. This shortens the loan term and lowers total interest, but it doesn't lower the required monthly payment unless you refinance or recast the loan.
What is the difference between amortization and simple interest?: Amortizing loans recalculate interest each period on the remaining balance (so principal grows over time). Simple-interest installment loans compute total interest up front and divide it evenly across payments. Both are common in auto lending — read the contract carefully.

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