Amortization Calculator
Frequently Asked Questions
What is the difference between an amortization schedule and a simple loan calculator?
A simple loan calculator shows only your monthly payment. An amortization schedule shows every single payment across the entire loan term, breaking each one into principal and interest components and displaying the remaining balance after every payment — giving you a complete picture of your loan's life.
Why does so much of my early mortgage payment go to interest?
Interest is calculated on your outstanding balance each month. At the start, your balance is highest, so interest charges are highest. As each payment reduces the principal, the next month's interest is slightly less, leaving more of your fixed payment to reduce the balance — a compounding effect that accelerates near the end of the term.
How does making extra principal payments affect the amortization schedule?
Extra principal payments directly reduce your outstanding balance, which lowers the interest charged on every future payment. This shortens your loan term and reduces total interest paid. Even one extra payment per year on a 30-year mortgage can cut 4–6 years off the payoff date and save significant interest.
Can I use this calculator for auto loans and personal loans, not just mortgages?
Yes. The amortization formula is identical for any fixed-rate installment loan. Enter the loan amount, annual interest rate, and term in months or years — the calculator produces the same detailed schedule whether the loan is a mortgage, auto loan, student loan, or personal loan.
Does the monthly payment include property taxes and homeowner's insurance?
No. The amortization calculator shows only the principal and interest portion of your payment. Actual housing costs also include property taxes, homeowner's insurance, and possibly PMI. Add those figures separately after calculating your P&I payment to get your true total monthly housing expense.
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