Mortgage Amortization Calculator
About This Amortization Calculator
Our mortgage amortization calculator helps you understand how your loan balance changes over time. It shows you:
- Complete payment schedule over the life of your loan
- Breakdown of principal and interest for each payment
- Impact of extra payments on your loan term
- Total interest costs and payoff date
- Visual representation of your loan amortization
Understanding Loan Amortization
Early Years
- More of each payment goes to interest
- Slower equity building
- Higher interest costs
- Good time to start extra payments
Later Years
- More of each payment goes to principal
- Faster equity building
- Lower interest costs
- Accelerated loan payoff potential
Extra Payment Options
Monthly Extra Payments
- Regular additional principal reduction
- Consistent impact on loan term
- Easy to budget for
- Smaller amounts more manageable
Annual Extra Payments
- Good for bonuses or tax returns
- Larger lump sum reduction
- Once-a-year planning
- Significant interest savings
One-Time Extra Payments
- Perfect for windfalls
- Immediate impact on balance
- Flexible timing
- No ongoing commitment
Benefits of Extra Payments
Financial Benefits
- Reduce total interest paid
- Shorten loan term
- Build equity faster
- No prepayment penalties on most mortgages
- Flexibility to pay extra when possible
Strategic Considerations
- Compare with investment returns
- Maintain emergency savings
- Consider tax implications
- Check for prepayment penalties
- Balance with other financial goals
Reading Your Amortization Schedule
- Payment Date: When each payment is due
- Payment Amount: Regular monthly payment
- Principal: Amount that reduces your loan balance
- Interest: Cost of borrowing for that period
- Extra Payment: Additional principal reduction
- Balance: Remaining loan amount
Important Notes:
- Results are estimates based on regular, on-time payments
- Actual loan terms may vary by lender
- Extra payments must be designated as principal-only
- Check with your lender about prepayment policies
- Consider consulting a financial advisor for personalized advice