What is a mortgage amortization schedule?

An amortization schedule is a table showing every payment over the life of your loan. It breaks down each payment into the interest portion and the principal portion, and shows the remaining balance after each payment. Early in the loan, most of each payment is interest. Over time, more goes toward principal.

How do extra payments affect amortization?

Extra payments go directly to reducing your principal balance, which reduces future interest charges. Even small extra monthly payments can shave years off your loan and save tens of thousands in interest. Our calculator shows you exactly how much time and money you save with extra payments.

Why do early mortgage payments have so much interest?

Mortgage interest is calculated on the outstanding balance each month. Early in the loan, your balance is high, so more of each fixed payment goes to interest. As you pay down the principal, the interest portion shrinks and more goes toward principal — this is how amortization works.

How is the monthly mortgage payment calculated?

The monthly payment is calculated using the formula M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of payments (years × 12). This ensures the loan is fully paid off at the end of the term.

Mortgage Amortization Calculator

🏠 Loan Details

Loan Amount $320,000

Interest Rate 6.81%

Loan Term 30 yrs

Extra Monthly Payment $0

📊 Summary

Monthly Payment

$2,100

$—

Total Interest

$—

Total Paid

Payoff Date —

📅 Amortization Schedule

Frequently Asked Questions

An amortization schedule is a complete table of every payment over your loan's life. Each row shows the payment number, payment amount, how much goes to interest, how much reduces principal, and the remaining loan balance. Early payments are mostly interest; later payments are mostly principal.

Every extra dollar you pay goes directly to reducing principal. A lower principal means less interest charged next month, and that compounding effect adds up significantly over time. Even $100/month extra on a $320,000 loan can shave 4+ years off a 30-year mortgage and save over $50,000 in interest.

Mortgage interest is charged on your outstanding balance. At the start, your balance is the full loan amount, so interest is at its highest. As you pay down principal over time, the interest portion shrinks and more of each payment reduces your balance — this is the math behind amortization.

Most modern mortgages do not have prepayment penalties, but some loans (especially certain adjustable-rate mortgages) may include them. Always check your loan documents for prepayment penalty clauses before making extra payments. For most conventional loans originated after 2014, prepayment penalties are restricted by federal law.

Disclaimer: Rates shown are for illustrative purposes only. Actual mortgage rates and payment schedules will vary. Consult a licensed financial advisor or mortgage professional before making mortgage decisions.

Mortgage Amortization Calculator

Frequently Asked Questions

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Mortgage Amortization Calculator

Frequently Asked Questions

What is a mortgage amortization schedule?

How do extra payments affect my amortization?

Why do early payments have so much interest?

Can I pay off my mortgage early without penalty?

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