Mortgage Amortization CalculatorFree online financial calculator — instant results, no sign-up
Full yearly schedule for a mortgage.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Mortgage Amortization Calculator
This calculator generates a comprehensive yearly amortization schedule for a standard fixed-rate mortgage. Homebuyers and refinancing homeowners use it to see their fixed monthly payment, cumulative interest cost, and how each year's payments divide between principal reduction and interest charges.
- Loan amount
- The total principal borrowed, expressed in dollars. Typically between $50,000 and $2,000,000.
- Rate
- The annual nominal mortgage interest rate as a percentage. Typically ranges from 2% to 12%.
- Term
- The repayment duration of the loan in years. Standard mortgage terms are typically 15, 20, or 30 years.
Formula and method
M = P × [r(1 + r)^n] / [(1 + r)^n − 1] Interest_month = Balance × r Principal_month = M − Interest_month New_Balance = Balance − Principal_month
- MFixed monthly payment
- POriginal loan amount (starting principal)
- rMonthly interest rate (annual nominal rate divided by 12 and then by 100)
- nTotal number of monthly payments (term in years × 12)
- BalanceRemaining loan principal balance entering each payment period
The tool converts the term to months and the annual rate to a monthly decimal to calculate the fixed monthly payment using the standard annuity formula. It then iterates month by month through the entire loan, calculating monthly interest from the remaining balance and subtracting it from the monthly payment to determine principal reduction. Monthly figures are aggregated into 12-month blocks to display annual interest paid, annual principal paid, and year-end remaining balance.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Loan amount300000 $
- Rate6.5 %
- Term30 years
Results
- Monthly payment$1,896.20
- Total of payments$682,633.47
- Total interest$382,633.47
- Year 1Interest $19,401.27 · Principal $3,353.18 · Balance $296,646.82
- Year 2Interest $19,176.70 · Principal $3,577.74 · Balance $293,069.08
- Year 3Interest $18,937.10 · Principal $3,817.35 · Balance $289,251.73
How to use the Mortgage Amortization Calculator
- 1Multiply the loan term in years by 12 to find total months (n), and divide the annual rate by 1,200 to obtain the monthly interest rate (r).
- 2Calculate the fixed monthly payment using the amortization formula M = P × [r(1 + r)^n] / [(1 + r)^n − 1].
- 3Multiply monthly payment M by n to determine the total of payments, and subtract original principal P to get total lifetime interest.
- 4Simulate each month's interest and principal breakdown sequentially, summing each 12-month block into the yearly schedule until the remaining balance reaches zero.
Reading your result
The summary provides the required monthly principal-and-interest payment, the total amount paid over the life of the loan, and the total financing cost (interest). The yearly schedule highlights the amortization shift: early years allocate the vast majority of payments toward interest, while later years apply almost the entire payment toward eliminating the principal balance.
Limitations
The calculation assumes a fixed interest rate and does not account for adjustable-rate mortgages (ARMs), extra principal payments, or bi-weekly payment schedules. It also excludes recurring homeownership escrow costs such as property taxes, homeowner's insurance, and private mortgage insurance (PMI).
Common questions
Why does interest make up most of my payment during the first few years?+
Interest is charged every month on the outstanding loan balance. Because your balance is highest at the beginning of the mortgage, interest charges are also at their peak, leaving a smaller portion of each fixed payment for principal reduction.
Does this schedule include property taxes and insurance?+
No. This tool computes principal and interest (P&I) only. Lenders frequently collect property taxes, homeowners insurance, and private mortgage insurance (PMI) in an escrow account, which increases the total amount you write on your check each month.
How does choosing a 15-year term instead of a 30-year term affect the schedule?+
A 15-year term requires a higher monthly payment because the principal is repaid in half the time, but it drastically reduces total lifetime interest by lowering the time interest has to accrue.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.