Mortgage Amortization Calculator

Calculate your complete mortgage payment schedule with detailed breakdown of principal, interest, and optional extra payments to save on interest

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Your Mortgage Summary

$2,528 /month

Loan Amount

$320,000
Principal borrowed

Total Interest

$409,699
Over loan term

Total of Payments

$729,699
Principal + Interest

Payoff Date

Mar 2056
360 payments

Monthly Payment Breakdown

Principal & Interest $2,022
Property Tax $400
Home Insurance $100
PMI $0
Total Payment $2,522

Loan Summary

Down Payment $80,000
Down Payment % 20%
Interest Rate (APR) 6.5%
Payoff Time 30 years
Total Cost $809,699

Balance Over Time

Payment Breakdown

Amortization Schedule

Month Payment Principal Interest Extra Payment Balance

Understanding Mortgage Amortization

What is Amortization?

Amortization is the process of spreading out a loan into a series of fixed payments over time. Each payment covers both the principal amount borrowed and the interest on the loan. In the early years of a mortgage, a larger portion of each payment goes toward interest, while later payments increasingly go toward the principal.

This calculator helps you visualize exactly how each payment is applied, allowing you to see the true cost of your mortgage over its entire term.

How Interest is Calculated

Mortgage interest is calculated based on the remaining principal balance. The formula used is:

Monthly Interest = Remaining Balance × (Annual Rate ÷ 12)

This means that as your principal decreases over time, so does the interest portion of each payment, allowing more of your payment to go toward building equity.

Benefits of Extra Payments

Making extra payments on your mortgage can significantly reduce the total interest paid and shorten your loan term. Even small additional amounts can make a big difference:

  • Save thousands in interest over the life of the loan
  • Build equity faster
  • Pay off your mortgage years earlier
  • Reduce financial stress and increase security

PMI Explained

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. It protects the lender if you default on the loan.

PMI typically costs between 0.5% to 1% of the entire loan amount annually. Once you reach 20% equity in your home, you can request to have PMI removed, potentially saving hundreds of dollars each year.

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Estimated Payment: $2,528/mo