Mortgage amortization calculator
Your amortization schedule will show you how much of your monthly mortgage payments you spend toward principal and interest.
See how your payments change over time for your 30 year fixed loan term
At year 0
30 year fixed loan term
- Remaining
- $240,000
- Principal Paid
- $0
- Interest Paid
- $0
Insights
We’ll share an interesting insight here for key milestones in your payoff schedule.
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The NerdWallet amortization calculator gives you a detailed view of your projected mortgage payment schedule. Let’s say this first: it can be an intimidating report. Row after row of payments, with details on the allocation of each payment to interest (a lot in the early years of the loan) and to principal (not so much, at first).
The graph above may tell the story best. A gentle arc that illustrates paying down the loan and another of rising principal paid.
By sliding the year markers left and right, you can easily see the progress of your mortgage payoff on any given date. You can also adjust the interest rate and loan term to see how a future refinance could change your financial situation. And you can explore possible benefits of making accelerated principal payments to reduce your home loan debt.
Other benefits of using our mortgage amortization calculator:
- Seeing when private mortgage insurance premiums might be eliminated. Once principal reduction — and property value appreciation — grow your home equity to 20% or more, you’ll likely have the chance to rid yourself of PMI payments.
- Determining when shortening your loan term (say from 30 years to 15, or 10) might make sense.
- Performing your own “countdown to loan payoff”.
The NerdWallet amortization calculator gives you a detailed view of your projected mortgage payment schedule. Let’s say this first: it can be an intimidating report. Row after row of payments, with details on the allocation of each payment to interest (a lot in the early years of the loan) and to principal (not so much, at first).
The graph above ma...
Mortgage amortization 101
The simple answer is: the lender gets paid first. In the early years of your mortgage, your monthly loan payment is heavily weighted to paying interest. Just a tiny reduction of the principal loan balance occurs with each payment at this stage. The rest of the payment often goes to insurance, taxes and other expenses wrapped into the monthly amount due.
As years pass, you’ll begin to see more of your payment going to principal — a greater amount is reducing the debt and less is being spent on interest.
No, loan amortizations are always the same: a representation of how a monthly payment is allocated among principal and interest. It’s just that mortgage amortizations are usually dealing with some pretty large numbers!
Probably not. The initial interest rate term would be represented well on an amortization schedule, but after the teaser interest rate term ends, it would be difficult to account for future interest rate adjustments.
Any amortization schedule on an ARM is really just an estimate and subject to substantial change.
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