Want to see how your payments break down? Use this amortize mortgage calculator to generate a full amortization schedule, showing exactly how much of each payment goes toward principal versus interest.
Amortize Mortgage Calculator
Total Cost: $0.00
Amortize Mortgage Calculator Formula
Amortization refers to the process of paying off a debt over time through regular payments. This calculator splits each payment into interest and principal using the following logic:
Principal = Payment – Interest
The monthly payment (M) itself is calculated via the standard annuity formula:
Variables
- P: Principal Loan Amount (Starting Balance).
- i: Monthly Interest Rate (Annual Rate / 12).
- n: Total Number of Payments (Years × 12).
- Balance: Remaining loan amount after each payment.
Related Calculators
- Extra Payment Calculator
- Refinance Calculator
- Bi-Weekly Mortgage Calculator
- Home Affordability Calculator
What is Amortize Mortgage Calculator?
An amortize mortgage calculator allows you to visualize the repayment journey of your loan. In the early years of a standard 30-year fixed-rate mortgage, the vast majority of your monthly payment goes toward interest, with only a small fraction reducing the principal.
By generating an amortization schedule, you can see exactly when the “tipping point” occurs—where you start paying more principal than interest—helping you make informed decisions about refinancing or making extra payments.
How to Calculate Amortize Mortgage Calculator (Example)
Example: $200,000 loan at 6% for 30 years.
- Monthly Payment: Calculated as $1,199.10.
- Month 1 Interest: $200,000 × (0.06 / 12) = $1,000.
- Month 1 Principal: $1,199.10 – $1,000 = $199.10.
- Month 1 Balance: $200,000 – $199.10 = $199,800.90.
- Month 2 Calculation: Interest is now calculated on $199,800.90, reducing the interest charge slightly and increasing the principal portion.
Frequently Asked Questions (FAQ)
Interest is calculated on the outstanding balance. Since your balance is highest at the start of the loan, the interest charge is also at its peak. As you pay down the balance, the interest charge decreases.
No. An amortization schedule only tracks the Principal and Interest of the loan. Taxes and insurance are usually held in an escrow account and do not affect the amortization of the loan balance.
Yes. Any amount paid over the required monthly payment goes directly to principal (assuming no prepayment penalties), which accelerates the amortization schedule and saves you interest.
While not a tax document, the amortization schedule estimates your annual interest paid, which can be helpful for tax planning if you itemize deductions.