Mortgage Amortization Calculator
Calculate your complete mortgage amortization schedule and see how each payment is split between principal and interest.
Loan Details
Loan Summary
Monthly Payment
Total Interest
Total of All Payments
Amortization Schedule
| Payment | Payment Amount | Principal | Interest | Remaining Balance | Total Interest |
|---|
Understanding Mortgage Amortization
Mortgage amortization is the process of paying off your home loan through regular monthly payments. Each payment is split between paying down the principal (the amount you borrowed) and paying interest (the cost of borrowing).
How Amortization Works
- Early Payments: In the beginning, most of your payment goes toward interest, with a smaller portion reducing principal.
- Later Payments: As time goes on, more of each payment goes toward principal, and less toward interest.
- Fixed Monthly Payment: With a fixed-rate mortgage, your payment amount stays the same, but the split between principal and interest changes.
- Building Equity: Each principal payment increases your equity (ownership) in the home.
Benefits of Understanding Your Amortization Schedule
Why It Matters
- • See exactly where your money goes each month
- • Plan for extra payments to save on interest
- • Understand how much interest you'll pay over time
- • Track your equity growth
- • Make informed refinancing decisions
- • Budget accurately for your home ownership costs
Ways to Save on Interest
- • Make extra principal payments when possible
- • Pay bi-weekly instead of monthly
- • Round up your monthly payment
- • Make one extra payment per year
- • Refinance to a lower rate when beneficial
- • Choose a shorter loan term if affordable
Key Amortization Terms
Principal
The original amount you borrowed, excluding interest. Each payment reduces this balance.
Interest
The cost of borrowing money, calculated as a percentage of your remaining principal balance.
Amortization Schedule
A table showing each payment over the life of your loan, breaking down how much goes to principal vs. interest.
Remaining Balance
The amount of principal you still owe after each payment. This is what you'd need to pay to fully pay off the loan.
Total Interest
The cumulative amount of interest you've paid up to any given point in the loan.
Amortization Example
For a $300,000 loan at 6.5% for 30 years:
- • Monthly payment: $1,896.20
- • First payment: $271.87 principal, $1,624.33 interest
- • Payment 180 (halfway): $949.73 principal, $946.47 interest
- • Last payment: $1,886.01 principal, $10.19 interest
- • Total interest paid over 30 years: $382,633.73
Note: This calculator provides a basic amortization schedule for fixed-rate mortgages. It does not include taxes, insurance, HOA fees, or other costs associated with homeownership. Actual loan terms may vary based on lender requirements, fees, and other factors. Consult with a mortgage professional for specific details about your loan.
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