Free Tool

Mortgage Amortization Calculator

See how every payment splits between interest and paying down your loan, month by month and year by year, and how extra payments can shorten the loan and cut your interest.

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Extra payments (optional)
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Paid on each anniversary, like a tax refund or bonus.

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When do I reach 20% equity?
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Shows when your balance reaches 80% and 78% of the price, when conventional mortgage insurance can come off. Based on the original price, not future home value.

Monthly principal and interest
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Total interest$0
Total of all payments$0
Payoff date-
Principal vs interest paid each year
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Year 1Year 30

Principal and interest only. Taxes, insurance and mortgage insurance are not included; use the payment calculator for the full monthly payment.

Send your numbers to Sarah or call (619) 254-4067

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Amortization schedule

Tap a year to see its 12 months.

YearPrincipalInterestExtraBalance

How amortization works

With a fixed-rate mortgage your principal and interest payment stays the same every month, but what it pays for changes. Interest is charged on the balance you still owe, so early payments go mostly to interest. As the balance shrinks, more of each payment goes to principal, and the loan pays down faster each year.

Any extra payment goes straight to principal. That lowers the balance the next month's interest is charged on, which is why even small extra payments early in the loan can save a lot of interest and shorten the loan by years.

Amortization questions

What is a mortgage amortization schedule?

It is a table showing every payment over the life of the loan, how much of each goes to interest and to principal, and the balance left after each payment. It shows how your equity grows and when the loan will be paid off.

Why do early mortgage payments go mostly to interest?

Interest each month is calculated on the remaining balance, which is highest at the start. On a 30-year loan at around 7%, well over three quarters of each payment in the first year goes to interest. The split shifts toward principal every month as the balance falls.

Is it better to pay extra monthly or once a year?

Both help, and paying earlier saves slightly more interest because the balance drops sooner. Monthly extra payments are easy to automate, while a yearly payment from a tax refund or bonus can work better for irregular income. Before paying extra, make sure you keep an emergency fund and confirm with your servicer that the extra amount goes to principal.

Does paying extra lower my monthly payment?

No. On most mortgages, extra payments shorten the loan and reduce total interest, but the required monthly payment stays the same. Some servicers offer a recast, where you pay a large lump sum and the payment is recalculated lower for a small fee.

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Sarah Baraz is based in San Antonio and licensed in Texas, Florida and California. Educational estimate only. This is not a loan offer, rate quote or commitment to lend. Actual schedules can differ slightly because of rounding, payment dates and how your servicer applies extra payments. The example rate is Freddie Mac's Primary Mortgage Market Survey national average for the week shown and is not available to every borrower.