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Mortgage Amortization Calculator
An amortisation schedule shows how each mortgage payment is split between interest and principal and how your balance falls over time.
An amortization schedule is the mortgage with its mask off: every payment split between interest and principal, and the balance walking down to zero. This calculator builds that schedule so you can see when the loan truly starts shrinking.
How to use this calculator
- Enter the loan amount, interest rate and term.
- Press calculate to see the monthly payment and the schedule by year.
What the schedule teaches
In the early years most of each payment is interest; the principal slice grows slowly, then fast. That is why extra payments early in the loan are so powerful: they cut the balance that later interest is charged on. It is also why moving house in the first few years often means you have paid a lot and reduced the loan very little.
Frequently asked questions
What is amortization?
Spreading a loan into fixed payments over a term, with each payment covering interest due and part of the principal, so the balance reaches zero exactly at the end.
Why does the interest share fall over time?
Interest is charged on the current balance. As the balance falls, the interest falls, so more of the fixed payment is left for principal.
Can I see the effect of extra payments?
Yes, add an extra monthly amount if the tool offers it, or compare the balance at a given year against a shorter-term run to see the same effect.