Mortgage Amortization Calculator
Principal vs interest over time.
Monthly payment and total interest over the life of the loan.
How the Math Works
The Mortgage Amortization Calculator reveals how your monthly payment splits between principal and interest over time using a systematic schedule. Each payment is divided so that initially, a larger portion goes toward interest (the cost of borrowing), while a smaller amount reduces your principal balance. As you continue making payments, the interest portion decreases because it's calculated on the remaining principal, which gets smaller each month, while the principal portion gradually increases until the loan is fully paid off.
Practical Applications
To use this calculator effectively, input your loan amount, interest rate, and loan term to generate a complete payment schedule. The tool will show you exactly how much of each payment applies to principal versus interest, helping you understand your equity buildup. You can also experiment with different scenarios—like making extra payments or refinancing—to see how they impact the total interest you'll pay and how quickly you'll build equity in your home.
Day-to-Day Use
This calculator helps you budget accurately by showing exactly how your payments change over time, so you know what portion actually reduces your debt. Understanding your equity buildup helps with financial planning for home improvements, refinancing decisions, or selling your home. It also reveals the long-term cost of borrowing, helping you make informed decisions about extra payments or loan terms that could save you thousands in interest over the life of your mortgage.
FAQ
Extra payments?
Use Mortgage with Extra Payments.