Mortgage amortization calculator with a yearly schedule
See the monthly payment, total interest and a year by year schedule of principal, interest and balance, with an optional extra payment.
Mortgage Amortization
Updates as you type
principal and interest only
How this is calculated. In plain words.
- 1
The monthly payment is the standard amortizing formula: loan times r, divided by one minus (1 + r) to the power of minus n, where r is the yearly rate divided by 12 and n is the number of months.
- 2
Each month, interest is the balance times r. The rest of the payment, plus any extra, reduces the balance.
- 3
The schedule adds up principal and interest for each year and shows the balance at the end of it.
- 4
Interest saved compares total interest with and without the extra payment.
Principal and interest only: property taxes, insurance and mortgage insurance are not included. This calculator gives an estimate for planning only. It is not financial, tax or legal advice.
Where each payment goes.
Why is most of an early payment interest?
Interest is charged on the balance, which is highest at the start. As the balance falls, less of each payment goes to interest and more goes to principal, even though the payment stays the same.
How much does an extra payment save?
Type an amount in the extra principal field and the calculator shows the interest saved and the months cut. Check that your lender applies extra payments to principal and does not charge a prepayment penalty.
Does this include taxes and insurance?
No. The payment is principal and interest only. An escrowed mortgage payment also collects property taxes and insurance, which change from year to year.
How is mortgage interest handled on a rental?
Interest on a rental loan is usually a deductible expense, while principal is not. In your books, record the interest part as an expense and the principal as a reduction of the loan balance, so the profit and loss shows only the interest. Ask a tax professional about your situation.
Is the result advice?
No. It is an estimate for planning, using only the numbers you type. Nothing is saved or sent anywhere; the calculation runs in your browser.
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