What’s the difference between “Principal” and “Interest” in the Schedule? Principal: Reduces your loan balance. Interest: The Cost of Borrowing (goes to the Lender). Early payments are mostly Interest; over time, more goes toward Principal. Website: https://amortizationchecker.com/ Address: 6436 Bud Bexley Pkwy, Land O' Lakes, FL 34638 Email: admin@amortizationchecker.com Phone: (601) 609-7001 Author: Zyra Velline