Amortization Calculator

What is the Amortization Calculator?

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A mortgage amortization Calculator is a table detailing regular mortgage payments over time. A portion of each payment counts towards principal and interest, and the mortgage amortization Calculator shows how much each component of your mortgage payment is used.

First, most of your payments go toward interest rather than principal. When your loan comes due, a loan amortization schedule is displayed. Most of your payments go toward principal repayment until the loan is fully paid off at the end of your term.

How to calculate amortization?

The repayment plan calculator shows:

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How much principal and interest is paid for a given payment.
How much principal and interest were paid in total on a given date.
How much you owe on the principal of your mortgage at any given time.
How much time you save by making one or more additional payments at the end of your mortgage.

This means you can use the Mortgage Amortization Calculator:

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Determine how much principal you owe now or how much you will owe later.
Determine how much you’ll need to pay each month to pay off your mortgage in 22 years instead of 30.
See how much interest you’ve paid over the life of your mortgage or in any given year, although this may vary depending on when the lender receives your payment.
Find out how much equity you have.

How do I calculate my monthly mortgage payment?

Here is the formula to manually calculate the monthly payment: M= P[r(1+r)^n/((1+r)^n)-1)]

M = total monthly repayments.

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P = Principal loan amount.

r = your monthly interest rate. The lender gives you the annual rate, so you need to divide that number by 12 (the number of months in a year) to get the monthly rate. If your interest rate is 5%, your monthly payment is 0.004167 (0.05/12 = 0.004167).

n = number of repayments over the loan term. Multiply the number of years in the loan term by 12 (the number of months in a year) to get the number of loan repayments. For example, a 30-year fixed-rate mortgage would have 360 payments (30×12=360).

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