Mortgage amortization calculator
Understand amortization
Part of your monthly mortgage payment covers interest while another goes toward your loan principal. This allocation changes over time. Knowing the breakdown of your payments can help you manage debt and plan for your financial goals.
See your schedule
Our amortization calculator shows you how much of your payment goes toward principal and interest over the life of your loan. Enter your mortgage amount, interest rate and loan term to see your amortization schedule.
Get personalized help
If you’re ready to take the next step toward a mortgage with us, or if you have any questions, one of our Home Lending Advisors can help.
What is amortization?
Amortization is a debt repayment plan that spreads your loan across a series of fixed repayments over time. When you make payments on your loan, the amortization schedule is set up to ensure each payment covers the interest and some portion of the principal amount, progressively reducing your outstanding loan balance on a consistent basis.
What is an amortization schedule?
An amortization schedule is a table that displays each payment for your loan under a structured plan, detailing how each installment covers both interest and principal. Generally, early in the schedule, the majority of each payment is typically allocated toward interest, with a smaller portion going to the principal balance. As the loan matures, more of each payment begins going towards the principal. Amortization schedules are specifically designed to help you see how your payments are split and how long it will take to pay down the debt.
How do you use the amortization schedule calculator?
To use the mortgage amortization calculator, start by entering the purchase price of the property you’re interested in. Next, input your down payment size, loan term and expected interest rate. The mortgage amortization calculator can display the composition of your loan’s principal and interest as either a total breakdown or as a snapshot of specific time periods of your loan. To generate an amortization table, choose the “amortization” option and click "see table."
Why use an amortization calculator?
Using an amortization calculator might be helpful if you’re looking to manage or plan your loan payments more effectively. An amortization calculator provides a clear timeline for paying off a potential loan alongside a clear breakdown of how each payment contributes to the principal and interest. This might benefit your financial planning before taking out a loan, enabling you to see the impact of additional payments or the effects of different mortgage terms and make more informed financial decisions.
How do you calculate amortization on your own?
Amortization is relatively simple in concept but requires some number crunching. To create a simple amortization table yourself, start by listing each installment period. For each period, calculate the interest portion of the payment by applying your interest rate to the remaining loan balance. Subtract this interest amount from your total payment for the period to determine how much of it goes towards reducing the principal. Then subtract this principal amount from your remaining loan balance to see the new balance for the next period. Repeating this for each installment period provides a basic amortization table.
Amortization calculator FAQs
Yes, making extra payments towards your mortgage can change your amortization schedule. When you make an additional payment, it may go toward your principal balance, reducing it faster than scheduled. This increased reduction in principal decreases the amount of interest you owe over the life of the loan, potentially shortening the time it takes to pay off the loan and altering the original amortization schedule. Speak with your lender for clarity on how extra payments might factor into your specific amortization schedule.
Making extra payments toward your mortgage principal is one way to potentially reduce your mortgage amortization schedule. You may be able to do this by either increasing the amount of your regular payments or making additional payments. These extra payments could decrease the principal balance more quickly, reducing the total amount of interest paid and possibly shortening the overall term of the loan.
Loan that are fully amortizing are structured so that making all of your payments on schedule which completely pay off the loan by the end of its term.
