Mortgage Amortization Calculator
Calculate your mortgage amortization schedule with our free calculator. See how payments break down between principal and interest over the life of your loan.
Category: Financial
Frequently Asked Questions
What is mortgage amortization?
Mortgage amortization is the process of paying off your mortgage loan through regular payments over time. Each payment is split between principal and interest, with more interest being paid at the beginning of the loan term and more principal being paid toward the end.
How is an amortization schedule calculated?
An amortization schedule is calculated by determining how much of each payment goes to interest and how much goes to principal. Interest is calculated based on the current principal balance, and the remainder of the payment reduces the principal. As the principal decreases, less interest is charged, and more of each payment goes toward paying down the principal.
Why does my amortization schedule show more interest at the beginning of my loan?
Your amortization schedule shows more interest at the beginning because interest is calculated based on the outstanding principal balance. Since the principal balance is highest at the start of the loan, the interest portion of each payment is also highest. As you pay down the principal over time, the interest portion decreases and more of each payment goes toward reducing the principal.