Mortgage Amortization Calculator
View your complete payment schedule and see how extra payments save you money.
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📚 Understanding Mortgage Amortization
Amortization is the process of paying off a loan through regular payments over time. Each payment covers both interest (the cost of borrowing) and principal (the actual loan amount). Understanding your amortization schedule helps you see exactly where your money goes each month and how your loan balance decreases over time.
In the early years of a mortgage, most of your payment goes toward interest. As time passes, the balance shifts—more goes to principal and less to interest. This is why making extra principal payments early in your loan has such a dramatic effect on total interest paid.
Key amortization concepts:
- Principal portion: The part of each payment that reduces your loan balance
- Interest portion: The cost charged by the lender for borrowing
- Amortization schedule: A complete table showing every payment over the loan term
- Front-loaded interest: Why most interest is paid in early years
- Extra payments: Additional amounts that go directly to principal
This calculator shows your complete payment schedule and lets you see how extra payments can dramatically reduce your loan term and total interest paid.
🎯 How to Use This Calculator
Our mortgage amortization calculator provides a detailed view of your entire loan repayment schedule. Here's how to get the most from it:
- Enter your loan amount – This is the principal you're borrowing (home price minus down payment).
- Set your interest rate – Your annual interest rate from your lender or rate quote.
- Choose your loan term – Select 10, 15, 20, or 30 years to see how term affects payments.
- Set your start date – When you expect to close on your loan.
- Add extra payments – See how paying extra each month saves money and time.
- Toggle between views – Switch between yearly summary and monthly detail views.
The chart shows your loan balance decreasing over time, and if you add extra payments, you'll see a comparison showing how much faster you'll pay off the loan.
💪 The Power of Extra Payments
Why Extra Payments Work
When you make extra payments, 100% goes directly to principal. Since interest is calculated on your remaining balance, reducing the principal means less interest accrues. This creates a compounding effect—each extra dollar saves you multiple dollars in future interest.
Example: $300,000 Loan at 7% for 30 Years
Base payment: $1,996/month • Total interest: $418,527
With $200 extra/month: Pays off 6 years early, saves $89,000+ in interest
With $500 extra/month: Pays off 12 years early, saves $168,000+ in interest
Bi-Weekly Payments
Paying half your monthly payment every two weeks results in 26 half-payments (13 full payments) per year instead of 12. This extra payment annually can shave years off your loan without feeling like a significant sacrifice.
One-Time Payments
Using bonuses, tax refunds, or windfalls to make lump-sum principal payments can have a big impact, especially early in your loan when interest charges are highest. Ask your lender about applying payments to principal only.
❓ Frequently Asked Questions
Why does most of my payment go to interest at first?
Interest is calculated on your remaining balance. When you first start, you owe the full loan amount, so interest charges are highest. As you pay down the balance, less interest accrues, and more of each payment goes to principal. By the end of a 30-year loan, almost all of your payment is principal.
Is it better to refinance or make extra payments?
It depends on your current rate vs. available rates and closing costs. Use extra payments if rates haven't dropped significantly or if you want to avoid closing costs. Refinancing makes sense if you can get a notably lower rate (typically 0.5-1% or more lower) and plan to stay long enough to recoup closing costs.
Should I pay off my mortgage early or invest?
Compare your mortgage rate to expected investment returns. If your mortgage is at 3%, investing may yield higher returns. At 7%+, the guaranteed "return" from paying off debt is attractive. Also consider tax implications, emergency fund status, and peace of mind. Many people split the difference—some extra to mortgage, some to investments.
Do extra payments automatically go to principal?
Not always. Some lenders apply extra payments to future payments (principal + interest) instead of principal only. Contact your lender to confirm they'll apply extra amounts to principal. Many online payment systems have a "principal only" option. Always verify your statement to ensure extra payments are applied correctly.
What is the 15 vs 30-year trade-off?
A 15-year mortgage has higher monthly payments but a lower interest rate and dramatically less total interest. A 30-year offers lower payments and flexibility. Some borrowers take a 30-year for the lower required payment but make extra payments as if it were a 15-year—giving them flexibility if needed while still paying off early.
Can I switch between yearly and monthly views?
Yes! Use the toggle above the amortization table to switch between a yearly summary (great for the big picture) and monthly details (shows every individual payment). The monthly view is especially useful for tracking your first few years or seeing exactly when you'll cross milestone balances.
💡 Strategies for Paying Off Your Mortgage Faster
Round Up Payments
If your payment is $1,847, round up to $1,900 or $2,000. The extra $50-150/month adds up significantly over time without feeling like a burden.
Apply Windfalls
Tax refunds, work bonuses, and gifts are perfect for one-time principal payments. Even one extra payment per year can cut years off your loan.
Recast After Large Payments
After making a large lump-sum payment, ask your lender about recasting. This re-amortizes your loan with the lower balance, reducing your required monthly payment while keeping the same rate.
Set a Target Payoff Date
Use this calculator to find what extra payment amount gets you to a goal date—like paying off before retirement or before kids start college.