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Category Mortgage & Loans

Loan Amount ($)

Interest Rate (%)

Loan Term (Years)

Extra Monthly Payment ($)

Monthly Payment$0.00

Total Interest$0.00

Payoff Date--

Amortization Schedule

Year	Month	Payment	Principal	Interest	Balance
Click Calculate to view schedule

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About

A mortgage is often the largest debt a consumer will ever take on. Understanding how it works is not just about knowing the monthly payment; it is about understanding the relationship between Principal and Interest. In the early years of a loan, the majority of your payment goes solely towards interest, enriching the bank. Only a small fraction reduces your actual debt.

This tool generates a precise Amortization Schedule, a table detailing every payment for the life of the loan. It reveals the tipping point - the exact date when your payments start covering more principal than interest. Crucially, this calculator includes an Extra Payment simulator. By adding even a small amount to the principal each month, you can drastically reduce the loan term and save tens of thousands in interest.

Formulas

The standard monthly mortgage payment M is calculated using the fixed-rate formula:

M = P r⋅(1+r)ⁿ(1+r)ⁿ − 1

Where:

P = Principal loan amount
r = Monthly interest rate (Annual Rate ÷ 12)
n = Total number of payments (Years × 12)

Remaining Balance Calculation:

To find the balance B after k payments:

B_k = P (1+r)ⁿ − (1+r)^k(1+r)ⁿ − 1

Reference Data

Frequency	Payments per Year	Interest Compounding	Use Case
Monthly	12	Monthly	Standard US Mortgages
Bi-Weekly	26	Semi-Annually / Monthly	Accelerated Payoff
Semi-Monthly	24	Monthly	Paychecks on 1st & 15th

Frequently Asked Questions

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

Extra payments go 100% towards the Principal balance (after current interest is satisfied). This reduces the base on which future interest is calculated. The result is a "snowball effect" that shortens the loan term and significantly reduces total interest paid.

Interest is calculated on the current outstanding balance. At the start, your balance is at its highest (e.g., $300,000), so the interest charge is maximum. As you slowly pay down the principal, the balance decreases, and the interest charge drops, allowing more of your fixed payment to go toward principal.

No. This tool calculates "Principal and Interest" (P&I) only. Taxes and insurance (often bundled into escrow) vary wildly by location and are added on top of the P&I figure shown here.