Mortgage Calculator with Amortization Schedule

Amortization is the process of paying off a mortgage (or any type of debt) over a period of time with equal payments. Each periodic payment consists of two portions, the amount which goes towards paying off the principal, and the other goes towards paying the interest on the loan. Since with each payment the amount of the loan principal becomes smaller, the amount of interest to be paid on the loan also decreases.

Over time, the portion of the payment going towards the principal grows, while the interest payment declines. An amortization schedule shows the breakdown of principal and interest payment for each payment period over the entire life of the loan.

Mortgage Calculator

Monthly Payment

Interest paid

Total amount paid

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Start Date

Estimated Payoff Date

Amortization Schedule

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How To Calculate Mortgage Payments

The formula to calculate mortgage payments requires the following information:

  • P = The principal loan amount
  • r = The monthly interest rate of the loan. The rate provided by your mortgage lender is an annual rate, so that number should be divided by 12 to give you the monthly rate. For example, if your mortgage loan interest rate is 7%, then your monthly rate would be 0.07/12=0.00583.
  • n = The number of payments required to pay off the loan. To get this number, multiply the number of years in your loan term by 12 (the number of months in one year). For example, a 15-year (fixed) mortgage would have 180 payments (15x12=180).

Once you have these numbers, use the following formula to calculate your monthly loan payment:M (your monthly payment) = P[r(1+r)^n/((1+r)^n)-1)]