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Amortization Calculator

Use this free Amortization Calculator to view your detailed loan payment schedule. Simple, accurate, and easy to use for mortgage tracking.

An amortization schedule is the roadmap of your loan. The Amortization Calculator breaks down every single payment you will make over the next 15 or 30 years, showing exactly how much goes to the bank (interest) and how much goes to you (principal/equity).

Early in a loan, nearly all your payment goes to interest. This tool helps you visualize that painful reality and see how extra payments can fast-track you to the "principal-heavy" side of the curve.

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When to Use This Calculator

Use the Amortization Calculator to:

  • Track Progress: "I've been paying for 5 years. How much do I still owe?"
  • Plan Extra Payments: "If I pay an extra $100 a month, how many years will I shave off my mortgage?"

Example Scenario

Consider a $200,000 loan at 5% for 30 years.

Payment 1: You pay $1,073.
Interest: $833. Principal: $240.

Payment 180 (Year 15): You still pay $1,073.
Interest: $560. Principal: $513.

It takes 15 years before a payment sends more to principal than interest!

Formula & Calculation Method

Formula Used

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

Variable Explanation

  • M: Total Monthly Mortgage Payment
  • P: Principal Loan Amount
  • i: Monthly Interest Rate
  • n: Number of Payments (Months)

Step-by-Step Calculation

  1. 1. Subtract Down Payment from Home Price to find the Principal Loan Amount.
  2. 2. Convert annual rate to monthly interest rate.
  3. 3. Use the standard mortgage amortization formula.
  4. 4. The result is the principal and interest payment (taxes and insurance not included).

Interpretation Notes

This formula strictly calculates Principal and Interest. Property taxes, homeowners insurance, and PMI are extra costs typically added to this monthly figure.

How to Interpret the Results

The Tipping Point: Identify the month/year where Principal > Interest. Your goal is to reach that point as fast as possible.

Common Mistakes

Assuming Linear Paydown: You don't pay off 50% of the loan in 50% of the time. In a 30-year mortgage, you owe more than half the balance even after 20 years.