Mortgage Amortization Calculator

Amortization is the process of paying off a debt through regular scheduled payments over time. With a mortgage, each monthly payment covers both the interest owed and a portion of the principal. Early in the loan, most of each payment goes toward interest; over time, the balance shifts so more goes toward paying down the principal.

Your monthly payment is calculated using the loan amount (home price minus down payment), the annual interest rate divided by 12, and the total number of monthly payments. The standard formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is the number of payments.

A 15-year mortgage has higher monthly payments but significantly less total interest paid over the life of the loan. A 30-year mortgage offers lower monthly payments, making it easier to qualify and freeing up monthly cash flow, but you'll pay roughly twice as much in total interest over the loan's lifetime.

A larger down payment reduces your loan amount directly, which lowers both your monthly payment and the total interest you'll pay. Putting down 20% or more also typically eliminates the need for private mortgage insurance (PMI), saving you additional money each month.

The main factors are your loan amount, interest rate, and loan term. A higher interest rate increases the share of each payment that goes to interest. A longer term reduces monthly payments but increases total interest paid. Making extra principal payments can dramatically shorten your payoff timeline and reduce total interest.

Yes. Enter your original loan amount (or remaining balance), your current interest rate, and your remaining loan term in years. The calculator will show you your monthly payment and a schedule of remaining payments, helping you understand how much interest you still owe.

The amortization schedule breaks down every monthly payment over the full life of your loan. For each month it shows the total payment, how much goes to interest, how much reduces your principal balance, and the remaining loan balance. This helps you see exactly when you'll build significant equity in your home.

The payoff date is calculated by adding the total loan term (in months) to your loan start date. For a 30-year mortgage starting in January 2025, the payoff date would be January 2055. Making extra payments toward your principal can move this date earlier.