Mortgage Amortization Calculator

The amortization calculator on this page helps you understand how the principal of your loan decreases over the life of your loan. The chart below demonstrates how your loan principal changes over time as well as how much of your mortgage payment  goes towards principal and interest  (on an annual basis), and how your annual interest rate affects this ratio.  (Learn more)

Amortization describes how the principal of your home loan decreases over the life of your loan. Each time you make a mortgage payment , a portion of that payment goes towards repaying your loan (reducing your principal) while the remainder goes towards paying for the interest on your loan. This ratio changes slightly with each payment you make. As your principal decreases, more of your monthly payment goes towards principal and less towards interest.

 


Loan Amount:
$
   
Loan Duration
   
Loan Interest Rate:
 
%   
   

Amortization Schedule
 

THIS SUMMARY PROVIDES ESTIMATES ONLY . Before making any home or loan purchase decision, you should obtain the advice of a professional financial advisor who is aware of your individual circumstances. Please refer to the Terms Of Use  for a complete description of the proper use of this information.

Understanding Your Results
 

Loan Amortization: The above graph shows the principal of your loan over 30 years. The graph shows that your principal gets smaller every year until it reaches ‘0’ in the 30th year when you have paid your loan in full.

Starting Principal: When holding your mouse on a column, ‘Starting Principal’ shows your loan’s principal at the beginning of that year before any payments have been applied to it.

Payments: When holding your mouse on a column, ‘Payments’ shows the amount you will pay to the bank in principal and interest for that year. Notice that this number does not include property tax or property insurance.

Interest: When holding your mouse on a column, ‘Interest’ shows the amount of your payment for the year that will go towards paying interest to the bank. Notice that the amount of your payment that gets applied towards interest decreases each year.

Principal: When holding your mouse on a column, ‘Principal’ shows the amount of your payment for the year that will go towards paying back the principal of your loan. Notice that the amount of your payment that gets applied towards principal increases each year.


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