Mortgage Amortization Calculator Free Tool
Mortgage Amortization Calculator
Mortgage Information
Monthly Pay
$0.00
Total monthly payment including all costs
Payment Breakdown
| Monthly | Total | |
|---|---|---|
| Mortgage Payment | $0.00 | $0.00 |
| Property Tax | $0.00 | $0.00 |
| Home Insurance | $0.00 | $0.00 |
| Other Costs | $0.00 | $0.00 |
| Total Out-of-Pocket | $0.00 | $0.00 |
Monthly Payment Distribution
$500,000.00
$0.00
$0.00
$0.00
Amortization Schedule
Balance Over Time
| Year | Date | Interest | Principal | Ending Balance |
|---|
An amortization schedule breaks down every mortgage payment into its principal and interest components, showing exactly how much of each payment reduces your balance versus goes to interest. Seeing this schedule is eye-opening for most homeowners. In the early years of a 30-year mortgage, the vast majority of each payment is interest.
How Amortization Works
Your monthly payment stays the same throughout the loan, but the split between principal and interest shifts over time. In month 1, most of your payment is interest. By month 360 of a 30-year loan, almost all of it is principal. This front-loading of interest is why paying extra early in the loan saves so much money.
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1] Where: P = Principal, r = Monthly Rate, n = Number of Payments
The total interest paid over 30 years on a $300,000 loan at 7% is approximately $418,000 in addition to the principal.
Reading Your Amortization Schedule
Each row of the schedule shows: the payment number, total payment amount, interest portion, principal portion, and remaining balance. The remaining balance column shows your equity growth over time (combined with any appreciation in the home's value). Homeowners are often surprised how slowly the balance drops in the first decade.
| Year | Interest Paid (approx) | Principal Paid (approx) | Remaining Balance (approx) |
|---|---|---|---|
| 1 | $20,900 | $1,700 | $298,300 |
| 5 | $19,900 | $2,700 | $288,000 |
| 10 | $18,300 | $4,300 | $265,000 |
| 15 | $15,800 | $6,800 | $232,000 |
| 20 | $11,800 | $10,800 | $183,000 |
Frequently Asked Questions
Why does it take so long to build equity early in a mortgage?⌄
Because interest is calculated on the outstanding balance, and the balance is high at the start, nearly all of your early payments cover interest. Only a small portion reduces principal. As the balance falls, more of each payment goes to principal, accelerating equity growth in the later years.
What is negative amortization?⌄
Negative amortization happens when your payment does not cover the interest due, so the unpaid interest is added to the loan balance. Your balance grows instead of shrinking. This occurred with some adjustable-rate mortgages before 2008. Most modern mortgages prohibit it.
How does a 15-year mortgage compare to 30-year in total interest?⌄
Dramatically. On a $300,000 loan at 7%, a 30-year mortgage pays roughly $418,000 in total interest. The same loan at 6.5% over 15 years pays about $175,000 in interest. The monthly payment is higher, but the total savings exceed $200,000.
Does the amortization schedule change if I pay extra?⌄
Yes. Extra principal payments reduce the balance faster, which lowers the interest accruing each month. Your required payment stays the same, but more of it goes to principal, and the loan ends early. Use the mortgage payoff calculator to see exactly how much time and interest you save.