Amortization Calculator

When you commit to a mortgage, you know your end goal: a payoff date, somewhere 15, 20 or 30 years down the line. While your monthly mortgage bill stays the same, the part of the loan you’re paying off changes over time. An amortization calculator gives you a bird’s eye view of what that looks like—how your payments break down between the principal and interest each month. Use this mortgage amortization calculator to plan ahead: compare loan options, consider refinancing routes or see how extra payments can shorten a loan term and reduce total interest costs.

What is an amortization schedule?

An amortization schedule is a roadmap for your fixed mortgage (not adjustable-rate) payments. It shows how your payment will be divvied up between the principal and interest each month over the loan term. As you pay down the loan balance, a larger portion of your payment goes to the principal and less to the interest.

  • Why understanding amortization matters

    Understanding the mortgage payment breakdown helps you make informed financial decisions. When you know how your mortgage bill gets divvied up over time, you can better budget for other expenses and even strategize how to reduce your interest cost in the long run. Using an amortization schedule calculator can help you:
    • See how much of your payment goes toward interest vs. principal over time
    • Understand how long it’ll take to pay off your loan
    • Spot opportunities to save money by making extra payments
    • Navigate your financial future with more confidence

  • How your mortgage payment is structured

    Monthly mortgage payments typically consist of three main components:
    • Principal: The amount you borrowed.
    • Interest: The cost charged by your lender for borrowing, calculated based on your remaining balance.
    • Taxes and insurance: While costs like property taxes and PMI may be bundled into a mortgage bill, they aren’t a part of amortization.

How amortization works

  • Principal vs. interest breakdown

    With a fixed mortgage, your monthly payment remains the same amount every month. But due to amortization, the split between principal and interest shifts over time. In the early years, a big chunk of every payment goes to interest and a smaller portion goes to the principal. That’s because lenders charge interest based on your remaining balance—the higher the balance, the more interest you pay. As you shave down your loan balance, a larger share of your monthly payment is applied to the principal, while the interest portion decreases.

  • Loan term and payment timeline

    Your fixed loan term—say, 15 or 30 years—affects how your payments are spread out. A longer term means lower monthly payments, but more interest over time. A shorter term means higher payments, but you’ll pay off the loan faster and save on interest. What you choose depends on your short- and long-term goals. A 30-year term offers more manageable monthly payments, but a 15-year term saves you more in total interest.

Use the Amortization Calculator

  • Enter loan information

    First, give us the stats on your current mortgage or a potential loan—the loan amount, the term, the interest rate, the start date and if you plan to make extra payments.

  • View monthly payment and interest

    Once you hit “Calculate,” we’ll peel back the curtain on your mortgage. You will see your monthly payment and how it’s split between the principal and interest over the course of the loan.

  • Generate your amortization schedule

    You’ll also get the full play-by-play: a detailed amortization chart that covers every month and year, so you can see changes in your balance over time.

Want to pay off your loan faster?

  • Saving on interest with one-time or recurring payments

    Ready to own your home faster and save on interest? Making extra payments towards your principal can accelerate your loan payoff and score two big wins: increased equity and reduced interest costs. 
    Luckily, you don’t need piles of extra cash to do it. You can either make higher monthly contributions to the principal or pay off bigger chunks when you come into extra funds, like a tax refund or a work bonus. Play around to see how much you could save with different inputs: punch a one-time or recurring payment into the Amortization Calculator.

PRO TIP

You can use our calculator to plan to pay off your mortgage by a specific date. Simply pick a target date, and we’ll run the numbers to determine how much extra you need to pay. You can mix recurring and one-time payments to help you stay on track and hit that payoff goal.

Amortization FAQs

  • Amortization is calculated using a formula that spreads your loan payments evenly over the loan term. Each payment includes interest (based on the remaining balance) and principal. As the balance drops, the interest portion of each payment shrinks and the principal portion grows.

  • You can only change your amortization schedule by refinancing or making extra payments. When you pay more than the minimum, you can speed things up and pay off your mortgage early.

  • Amortized and interest-only loans have different payment structures. With an interest-only loan, your initial payments cover only interest (not the principal), so your bill is lower. After that period, a standard amortization payment schedule kicks in, and monthly payments rise to cover both the principal and interest. Interest-only loans tend to be more expensive due to steeper borrowing costs and the prolonged interest on the full loan amount.

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