Mortgage & Loan Tools
Mortgage Amortization Calculator
Estimate your mortgage amortization schedule and see how each payment is divided between principal and interest. Add an optional extra monthly payment to estimate how much interest and time you could save.
Enter your mortgage details
Estimate your monthly principal and interest payment and see how each payment is divided between principal, interest, and remaining loan balance.
Enter the mortgage principal after your down payment.
Estimate how additional monthly principal payments may shorten the mortgage and reduce interest.
Amortization Results
Enter your mortgage details
Your estimated monthly payment and amortization schedule will appear here.
How Mortgage Amortization Works
Mortgage amortization is the process of paying off a home loan through scheduled payments over time. With a typical fixed-rate mortgage, each monthly principal and interest payment is generally the same, but the way that payment is divided changes throughout the life of the loan.
During the early years of the mortgage, a larger portion of each payment usually goes toward interest. As the outstanding loan balance declines, the interest portion generally becomes smaller and more of each payment goes toward principal.
Principal
Reduces your balance
The principal portion of your payment directly reduces the amount you still owe on the mortgage.
Interest
Cost of borrowing
Interest is the cost charged by the lender for borrowing the money used to finance your home.
Extra Payments
Potentially pay off faster
Additional principal payments may reduce your balance faster, shorten your payoff period, and lower total interest.
How Extra Mortgage Payments Can Affect Your Loan
When you make an additional payment that is applied directly to principal, your outstanding mortgage balance declines faster. Because future interest is generally calculated using the remaining balance, reducing principal sooner may lower the amount of interest paid over the life of the loan.
For example, even a relatively small recurring extra payment may make a noticeable difference over a long mortgage term. Use the Extra Monthly Principal field above to compare different payment amounts and estimated payoff dates.
Before making extra mortgage payments
Check your mortgage agreement and lender policies. Some loans may have specific payment-processing rules, prepayment conditions, or instructions for ensuring that additional funds are applied directly to principal.
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Mortgage Amortization FAQ
What is a mortgage amortization schedule?
An amortization schedule shows how mortgage payments are allocated between principal and interest over time, along with the estimated remaining loan balance after each payment.
Why do early mortgage payments contain more interest?
Interest is generally calculated using the outstanding loan balance. Because the balance is highest near the beginning of the loan, the interest portion of early payments is typically larger.
Do extra payments reduce mortgage interest?
Extra payments applied to principal can reduce the outstanding balance faster. Depending on the loan terms, this may reduce total interest and shorten the payoff period.
Does this calculator include taxes and insurance?
No. This amortization calculator focuses on mortgage principal and interest. For an estimate that includes property taxes, homeowners insurance, PMI, and HOA fees, use the CalcForBiz Mortgage Calculator.
Estimate only
This calculator is provided for general informational and educational purposes only. Results are estimates and may differ from your lender's actual payment schedule due to rounding, payment dates, fees, loan terms, escrow requirements, and other factors. This tool does not provide financial, tax, legal, or lending advice.