See exactly how each payment splits between principal and interest over the life of any loan — mortgage, auto, personal, or business — with a full amortization schedule.
Amortization is the process of paying off a loan through fixed regular payments, where early payments go mostly toward interest and later payments go mostly toward principal.
Interest is calculated on the remaining balance each period. Since the balance is highest at the start of the loan, the interest portion of each payment is largest early on and shrinks over time.