Amortization schedule
The formula
How it works
See how a mortgage is paid off year by year, with each payment split between interest and principal. Early payments are mostly interest; as the balance falls, more of each payment builds your equity.
FAQ
When do I start paying more principal than interest?
It depends on the rate and term, but on a typical 30-year mortgage the crossover — where principal exceeds interest in a payment — happens somewhere past the one-third mark of the loan. The schedule shows exactly when.
How does the down payment affect the schedule?
A larger down payment means a smaller loan, so every payment covers more principal and less interest, and the total interest over the mortgage drops. The calculator uses your down payment to set the starting loan balance.
Why does my balance barely move in the first few years?
Interest is charged on the full remaining balance, so when the loan is largest the interest portion of each payment is largest too. As the balance slowly shrinks, more of each fixed payment goes toward principal instead.
Does a shorter loan term always mean a bigger payment?
Usually yes, since the same loan amount is repaid over fewer months, but the total interest paid drops sharply because the balance is cleared faster. A 15-year term often costs far less in interest than a 30-year term at the same rate.
What happens if I make an extra principal payment?
Any extra amount applied to principal reduces the balance immediately, so every future payment in the schedule recalculates with less interest owed. This calculator shows the standard schedule, but the same logic explains why overpayments save so much.
Why do two loans with the same rate have different schedules?
The loan amount and term both shape the schedule — a bigger loan or a longer term means more total interest and a slower shift toward principal, even at an identical rate. The amortization table makes those differences visible year by year.
Does the schedule include property taxes or insurance?
No, it only covers principal and interest on the loan itself. Many homeowners pay taxes and insurance through an escrow account, which adds to the total monthly cost but does not appear in this amortization breakdown.
About the mortgage amortization calculator
This calculator builds a full amortization schedule for a mortgage, showing how each year’s payments are divided between interest and principal and how the balance and your equity change over time. It is one thing to know your monthly payment; the schedule reveals the story behind it — how slowly the balance falls at first, how much interest you pay in total, and when your equity really starts to build.
How to use it
Enter the home price, your down payment percentage, the interest rate and the loan term. The calculator works out the loan amount and monthly payment, then lays out a year-by-year table of the principal and interest paid and the remaining balance. For example, a $350,000 home with 20% down at 6% over 30 years has a $280,000 loan and a payment of about $1,679, with most of the early payments going to interest.
The formula
The payment is set by the amortization formula, , where is the loan amount (price minus down payment), is the monthly rate and is the number of payments. Each month the interest is the balance times ; the rest of the payment reduces the principal. As the balance shrinks, the interest portion falls and the principal portion grows, even though the payment stays constant.
Where it is used
Homeowners use the schedule to understand how their equity builds, to see the true lifetime interest cost, and to plan overpayments. Buyers use it to compare loan terms and down payments before committing. Lenders provide amortization schedules with mortgage statements, and the interest column matters at tax time in places where mortgage interest is deductible.