How to build an amortization schedule year by year

Repeating AMORT walks through a loan one stretch at a time. Twelve payments at a time gives the yearly figures you need for taxes and planning.

Problem

For a $400,000, 30-year mortgage at 6%, how much interest and principal do you pay in each of the first two years, and what’s the balance after each?

Keystrokes

fFINx≷y
0.00
Start clean.
30g12×n
360.00
360 monthly payments.
6g12÷i
0.50
Monthly rate.
400000PV
400,000.00
The amount borrowed.
PMT
−2,398.20
The monthly payment.
0n
0.00
Resets the payment counter.
12fAMORTn
−23,866.39
Year 1: interest.
x≷y
−4,912.01
Year 1: principal.
RCLPV
395,087.99
Balance after year 1.
12fAMORTn
−23,563.42
Year 2: interest.
x≷y
−5,214.98
Year 2: principal.
RCLPV
389,873.01
Balance after year 2.

Answer

Year 1: $23,866.39 interest, $4,912.01 principal, $395,087.99 owed. Year 2: $23,563.42 interest, $5,214.98 principal, $389,873.01 owed.

Why it works

Each 12fAMORTn takes the next 12 payments from where the last one ended, because AMORT updates PV to the new balance and adds 12 to n. Keep pressing 12fAMORTn for each further year.

Mostly interest at first

In year 1 only $4,912.01 of the twelve $2,398.20 payments goes to principal. The rest is interest on a large balance. As the balance shrinks, more of each payment goes to principal, which is why early extra payments save so much interest.

Matching your lender’s statement

Lenders round the payment to the cent, so key it as your statement shows it with CHSPMT before 0n. A calendar-year statement may also start partway through your loan. Amortize the payments before January first, then do 12 at a time.

Questions

Can I do one month at a time?

Yes. Press 1 f AMORT for each payment, with x≷y for its principal and RCL PV for the balance.