📊Mortgage Amortization Calculator
See your complete payment schedule with detailed breakdown of principal, interest, and remaining balance for every payment.
Why Use This Calculator?
See Where Every Dollar Goes
$300k loan @ 6.5% for 30 years: Payment 1 = $1,896 total ($598 principal + $1,298 interest). Payment 180 (year 15) = $1,896 ($969 principal + $927 interest). Payment 360 = $1,896 ($1,886 principal + $10 interest). Amortization schedule shows exact principal/interest split every month. Track equity building month by month.
Calculate Total Interest Paid
$300k @ 6.5% for 30 years = $382,633 total interest ($682,633 total paid). 15-year = $151,984 interest savings. Extra $100/month = save $35,942 interest, finish 3.7 years early. Amortization calculator quantifies impact of every extra payment. See lifetime cost vs monthly cost.
Project Equity Growth Timeline
$300k loan year 1 = $7,182 principal paid (equity built). Year 5 = $8,847/year. Year 10 = $11,376/year. Year 15 = $14,726/year. Year 30 = $22,752/year. Equity builds slowly early, accelerates later. Calculator shows when you'll reach 20% equity (PMI removal), 50% equity (safer refinance position).
Plan Extra Payment Strategy
$300k loan: Extra $200/month = payoff in 22.7 years (7.3 years early), save $77,884 interest. One extra payment/year = payoff in 25.4 years, save $38,191. $10k lump sum year 5 = save $27,143 interest, finish 2.1 years early. Calculator models any extra payment scenario.
Compare Loan Terms Side-by-Side
$300k @ 6.5%: 30-year = $1,896/month, $382,633 interest. 15-year = $2,613/month, $170,382 interest (save $212,251). 20-year = $2,242/month, $238,055 interest. 25-year = $2,031/month, $309,393 interest. Amortization shows full payment breakdown for each term, helping choose optimal length.
Determine Refinance Break-Even Point
Currently payment 84 (year 7) on $300k @ 7%. Balance: $271,387. Refinance to 5.5% for 23 years = save $218/month. Closing costs $6,000 ÷ $218 = 27.5 month break-even. Amortization shows current balance, remaining term, allows accurate refinance comparison. Staying 3+ years = refinance worth it.
Step-by-Step Guide
Enter Your Loan Amount and Terms
Input principal ($300,000), interest rate (6.5%), and term (30 years). These drive entire amortization schedule. Loan amount = home price - down payment. Use exact rate from lender, not estimate. Term typically 15, 20, or 30 years for mortgages.
Example:
Example: $400k home - $80k down = $320k loan @ 6.75% for 30 years
Review First Payment Breakdown
$300k @ 6.5%: First payment $1,896 = $598 principal + $1,298 interest. Interest = $300k × 6.5% ÷ 12 = $1,625. Principal = $1,896 - $1,625 = $271. Remaining balance: $299,729. Early payments heavily weighted to interest because balance is highest. This is normal amortization.
Example:
Example: Payment 1 on $320k @ 6.75% = $2,076 ($598 principal, $1,478 interest)
Identify Halfway Point Transition
$300k loan @ 6.5% for 30 years: Payment 180 (year 15) = crossover where principal ($969) exceeds interest ($927) for first time. Balance: $204,874 (68% paid). First half of loan: paid $136,453 total ($95,126 principal + $95,126 interest). Second half accelerates - pays remaining $204,874 principal + $95,126 interest.
Example:
Example: Year 15 = halfway through payments, but only 31.7% of principal paid
Calculate Total Interest Over Life
$300k @ 6.5% for 30 years: 360 payments × $1,896 = $682,560 total paid. $682,560 - $300,000 principal = $382,560 total interest. Interest is 127.5% of original loan amount. Lower rate (5.5%) = $313,749 interest (save $68,811). Shorter term (15-year) = $170,382 interest (save $212,178).
Example:
Example: $320k @ 6.75% for 30y = $426,414 interest (133.3% of principal)
Determine When PMI Drops Off
$300k loan on $320k home (6.25% down). PMI drops at 78% LTV = $249,600 balance. Amortization schedule shows balance hits $249,583 at payment 85 (year 7, month 1). PMI $150/month × 85 months = $12,750 total PMI paid. Can request removal at 80% LTV ($256k balance) = payment 72 (year 6) with 2 years on-time payments.
Example:
Example: 5% down = ~7 years until automatic PMI removal at 78% LTV
Model Extra Principal Payments
$300k @ 6.5%: Standard payoff = 360 months. Extra $100/month = 315.3 months (26.3 years, save 3.7 years + $35,942 interest). Extra $200/month = 282 months (23.5 years, save 6.5 years + $62,341). One annual extra payment = 305 months (save 4.6 years + $38,191). Every extra dollar saves $3.20 in interest.
Example:
Example: $50/month extra on $300k @ 6.5% = save $18,429 interest, finish 1.8 years early
Identify Refinance Timing Opportunity
Year 10 (payment 120), balance $247,531. Market rate drops to 5% from your 7%. Refinance $247,531 for 20 years @ 5% = new payment $1,634 vs current $1,995 (save $361/month). But paid $164,469 interest in first 10 years. New loan pays $144,699 interest over 20 years. Total: $309,168 vs staying at 7% ($479,400). Save $170,232 by refinancing.
Example:
Example: After 7 years @ 7%, refinance $271k to 5.5% for 23y, save $218/month
Project Equity for Future Borrowing
$300k loan on $350k home. Year 5: $268,581 balance + $20k appreciation = $401,531 equity (21.2%). HELOC available up to 85% LTV = $297,500 - $268,581 = $28,919 borrowing power. Year 10: $247,531 balance + $40k appreciation = $142,469 equity (36.5%), $83,919 HELOC available. Amortization + appreciation = borrowing capacity.
Example:
Example: Year 8 equity: $300k - $257k balance + $30k appreciation = $73k (24.3%)
Calculate 15-Year vs 30-Year Comparison
$300k @ 6.5%: 30-year = $1,896/month × 360 = $682,560 total. 15-year = $2,613/month × 180 = $470,382 total. Save $212,178 (31% total cost reduction) but payment $717 higher (37.8% more monthly). Need extra $8,604/year budget room for 15-year. If affordable, 15-year saves massive interest.
Example:
Example: $320k @ 6.75%: 30y = $2,076/month, 15y = $2,841 (save $227,566 interest)
Track Progress Against Amortization Schedule
Print year 1 schedule. After payment 12, verify loan statement balance matches amortization ($296,799 expected). If actual balance higher = payments not applied correctly. If lower = you made extra payments (good!). Check annually to ensure lender applied payments properly. Discrepancies indicate escrow issues or payment errors.
Example:
Example: After 3 years, balance should be $287,424; if $290k, investigate extra charges
Expert Tips & Strategies
Front-Loaded Interest is Normal, Not a Scam
$300k @ 6.5%: Payment 1 = 68.5% interest ($1,298) vs 31.5% principal ($598). Math: $300k balance × 6.5% ÷ 12 = $1,625 monthly interest. This feels unfair but it's how loans work - interest charged on remaining balance. As balance decreases, interest decreases, principal increases. By year 20, only 32% goes to interest.
One Extra Payment per Year = Massive Savings
$300k @ 6.5%: Regular = $382,560 interest over 360 months. Add one $1,896 extra payment annually = $305,378 interest over 305 months, save $77,182 + finish 4.6 years early. Trick: pay half your mortgage every 2 weeks (26 half-payments = 13 full payments/year = 1 free payment). Autopilot savings.
Target Extra Payments at Principal, Not Escrow
$2,200 monthly payment = $1,896 P&I + $200 taxes + $100 insurance. Sending $2,400 doesn't help unless specified "extra $200 to principal." Otherwise lender holds in suspense or applies to escrow. Always indicate "principal only" on extra payments. Even better: separate principal-only check with memo.
Early Loan Years = Bad Time to Refinance
Year 2 of $300k @ 6.5%: balance $292,423, paid $17,577 principal + $28,075 interest. Refinance to 30-year restarts amortization = another 30 years front-loaded interest. Only refinance if rate drops 1%+ or switching to 15-year term. Refinancing years 1-5 usually costs more long-term despite lower rate.
Amortization Shows When to Refinance Out of PMI
$300k loan, 5% down ($315,789 home), PMI $175/month. Amortization shows 80% LTV ($252,631 balance) reached at payment 80 (year 6.7). Refinance then into conventional no-PMI loan, eliminate $175/month. $3k refinance costs ÷ $175 = 17 month break-even. Refinancing at year 7 = 23 years PMI-free savings ($48,300).
Use Amortization to Decide: Extra Payments vs Investing
$300k @ 6.5%: Extra $200/month saves $62,341 interest (guaranteed 6.5% return). Same $200 invested @ 8% = $219,803 after 30 years (beats mortgage by $157,462). But 6.5% guaranteed (mortgage) vs 8% assumed (stocks = risky). Safe play: extra payments. Aggressive play: invest. Balanced: split $100/$100.
Year 15 = Crossover Point to Track
Payment 180 (year 15) = first time principal ($969) exceeds interest ($927). Milestone: you're finally building equity faster than paying interest. Next 15 years will pay $204,874 principal + only $136,453 interest (reverse of first 15 years). This crossover = psychological win, validates long-term homeownership commitment.
Recasting vs Refinancing When Making Lump Sum Payment
$300k @ 6.5%, year 5, balance $268,581. Inherited $50k. Option 1: Pay lump sum, keep same payment ($1,896) = finish 12.3 years early. Option 2: Recast ($218,581 balance @ 6.5% over remaining 25 years) = new payment $1,468 (save $428/month). Recast costs $150-500 vs refinance $3k-6k. Lower payment without new loan.
Common Mistakes to Avoid
✓ Better approach: $300k loan, year 5, expecting ~$75k equity (25% paid). Actually: $268,581 balance = $31,419 equity (10.5% paid) + home appreciation. Amortization is front-loaded - first 10 years pays only 17.5% principal. Don't expect linear equity growth. Year 1 = 2.4% paid, Year 30 = 6.3% paid. Check schedule to set realistic expectations.
✓ Better approach: Year 3 @ 7%, balance $291k. Rate drops to 6.75%, refinance for $4k costs. Saves $44/month. Break-even: 91 months (7.6 years). But amortization restarts - paying years 1-3 front-loaded interest again. Total cost: $4k + lost progress. Only refinance if rate drops 0.5-1%+ or moving to shorter term.
✓ Better approach: Paying extra $500 randomly (twice a year) vs $83.33 extra every month (same $1,000/year). Random = $27,431 interest saved, 2.3 years early. Monthly = $28,887 saved, 2.4 years early. Small difference, but consistent monthly reduces compound interest more effectively. Autopay extra amount monthly beats sporadic large payments.
✓ Better approach: $300k loan, PMI $150/month. Amortization shows 80% LTV reached at payment 72 (year 6). PMI auto-cancels at 78% LTV (payment 85). Waiting = 13 extra months × $150 = $1,950 wasted. Track amortization, request cancellation at 80% LTV with 2 years good payment history. Get appraisal if home appreciated faster.
✓ Better approach: Took 30-year ($1,896/month) over 15-year ($2,613) planning to "pay extra to make it 15-year." Never paid extra = $382,560 interest vs 15-year's $170,382. Lost $212,178. 30-year flexibility only works with discipline. If you can afford 15-year payment, take 15-year rate (usually 0.5% lower) + forced paydown.
✓ Better approach: Paying extra $500/month to mortgage @ 6.5% while carrying $15k credit card @ 22%. Credit card costs $3,300/year interest. $500/month to mortgage saves $90,875 over 30 years (6.5% return). $500/month to credit card pays it off in 3 years, saves $3,300/year forever. Pay high-interest debt first, then mortgage.
✓ Better approach: Signed up for "biweekly payment plan" with $6.95/transaction fee. $1,896 ÷ 2 = $948 every 2 weeks × 26 = $24,648/year (vs $22,752 monthly = 12 × $1,896). 13th payment saves $38,191 interest. But fees: $6.95 × 26 = $180.70/year × 30 = $5,421 total. Just add 1/12 to monthly payment ($1,896 + $158 = $2,054) = same result, no fees.
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Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a complete table showing every payment over the life of your loan. For each payment, it breaks down how much goes to principal vs. interest, your remaining balance, and cumulative amounts paid. Early in the loan, most of your payment goes to interest; later, more goes to principal. This schedule helps you see exactly when you'll build equity and how much interest you'll pay over time.
Why does so much go to interest at first?
In the early years, your loan balance is highest, so you pay more interest (interest = balance × rate). As you pay down the balance, interest charges decrease, and more of each payment goes to principal. For example, on a $300K loan at 6.5%, your first payment might be $600 principal and $1,625 interest, but by year 15, it's reversed. This is called front-loaded interest and is normal for fixed-rate mortgages.
When will I start building equity?
You build equity with every payment (equity = home value - loan balance), but it accelerates over time. In the first year, you might build only $7,000-10,000 in equity on a $300K loan, but by year 15, you're building $15,000-20,000 per year as more of each payment goes to principal. Home appreciation also builds equity. Making extra principal payments accelerates equity building significantly.
How can I pay off my mortgage faster?
The most effective strategies are: (1) Make extra principal payments - even $100-200/month can cut years off your loan; (2) Make biweekly payments instead of monthly (26 half-payments = 13 full payments per year); (3) Make one extra payment per year; (4) Apply windfalls (bonuses, tax refunds) to principal; (5) Refinance to a shorter term when rates drop. Always specify extra payments are for principal only.
Should I pay extra on my mortgage or invest?
This depends on your interest rate and risk tolerance. Paying extra guarantees a return equal to your mortgage rate (e.g., 6.5%). Investing in stocks historically returns ~10% but with risk and volatility. General advice: (1) Pay off high-interest debt first (credit cards); (2) Get employer 401(k) match; (3) Build emergency fund; (4) Then choose between extra mortgage payments (guaranteed, safe) or investing (higher potential return, more risk). Many people do both.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.