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Amortization Calculator
Amortization Calculator
Calculate your monthly payment and see how principal, interest,
and your remaining loan balance change over time.
Loan Results
Monthly Payment
$0.00
Loan Amount
$0.00
Total Interest
$0.00
Total Payment
$0.00
| Year |
Principal Paid |
Interest Paid |
Remaining Balance |
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Calculate your loan to see the amortization schedule.
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About the Amortization Calculator
The Numelios Amortization Calculator shows how a fixed-rate loan can
be paid down over time. It breaks scheduled payments into principal
and interest and helps estimate the remaining loan balance throughout
the repayment period.
An amortization schedule can help borrowers understand why interest
makes up a larger share of many early loan payments and how principal
repayment gradually increases as the balance declines.
How Loan Amortization Works
With a standard fixed-rate amortizing loan, the scheduled principal
and interest payment generally remains the same while the amount
allocated to principal and interest changes over time.
Interest = Remaining Balance × Periodic Interest Rate
Principal = Scheduled Payment − Interest
The principal portion reduces the outstanding balance. Interest
for the following period is then calculated using the new,
lower balance.
Amortization Example
Consider a $300,000 mortgage with a
6.5% fixed interest rate and a
30-year term.
Loan Amount
$300,000
Interest Rate
6.5%
Loan Term
30 years
Payments
360 monthly
Early payments generally contain more interest and less principal.
As the balance falls, the interest portion decreases and more of
each scheduled payment goes toward principal.
Principal vs. Interest
Principal
Principal is the amount borrowed. The principal portion of
each payment reduces the remaining loan balance.
Interest
Interest is the borrowing cost charged on the outstanding
principal balance according to the loan's interest rate.
Remaining Balance
The remaining balance is the unpaid principal after scheduled
and eligible additional principal payments have been applied.
Total Interest
Total interest represents the accumulated interest paid over
the repayment period under the assumptions used.
Why Do Early Mortgage Payments Include More Interest?
Interest is calculated using the outstanding balance. Near the
beginning of a mortgage, the balance is close to the original loan
amount, so the interest charge is relatively high.
As principal is repaid, the outstanding balance decreases. That
generally reduces the interest charged each month and allows a larger
share of the scheduled payment to reduce principal.
How Loan Term Affects Amortization
A longer repayment term generally produces a lower required monthly
payment because repayment is spread across more payments. However,
the borrower may pay substantially more interest over the full term.
A shorter term generally requires a higher monthly payment but pays
principal down faster and may substantially reduce total interest.
Use the
Mortgage Calculator
to compare monthly payment estimates for different rates and terms.
How Extra Payments Affect an Amortization Schedule
Additional payments applied directly to principal can reduce the
outstanding balance faster. Because future interest is calculated
using a smaller balance, this may shorten the repayment period and
reduce total interest.
Use the
Mortgage Payoff Calculator
to explore how additional principal payments may affect payoff time
and estimated interest savings.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule shows scheduled loan payments over
time and typically identifies the amount allocated to principal,
interest, and the remaining balance after each payment.
Why does the principal portion increase over time?
As the outstanding balance declines, less interest is generally
charged each period. With a fixed scheduled payment, more of the
payment can therefore be applied to principal.
Does amortization include property taxes and insurance?
Loan amortization generally describes principal and interest.
Property taxes, homeowners insurance, mortgage insurance, HOA
fees, and other housing expenses are separate unless a specific
calculator explicitly includes them.
Can I change an amortization schedule with extra payments?
Additional principal payments can reduce the balance faster
and may change the effective payoff date and total interest paid.
Loan terms and servicer procedures should be checked before
making additional payments.
What happens with a shorter loan term?
A shorter term usually increases the required monthly payment
but pays down principal more quickly and can reduce total
interest compared with a longer term at the same rate.
This calculator is provided for informational and educational purposes only.
Results are estimates based on the values entered and may differ from an
actual lender or loan servicer amortization schedule.