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Amortization

Amortization is the gradual reduction of a debt over a given period. Our amortization calculator will amortize (show the reduction) your debt (such as a mortgage) and display your payment breakdown of interest paid, principal paid, and loan balance over the life of the loan.

It comes as a surprise to some that most of your initial payments on a loan are used to pay interest. For example, in a 30-year mortgage over 83% of your payments are used to pay down interest in the first year, while only 3% of your payments are used to pay down interest in the final year. This is the primary reason why little equity is built in the first few years of a mortgage.

Calculate

1. Loan Amount

The amount of money borrowed

ex. $500,000

2. Interest Rate

Interest rate used to calculate amortized monthly mortgage payments

ex. 6.125%

3. Number of Years

Typical Real Estate loans are calculated using a 30 or 15 year amortization schedule.

ex. 30

Your Amortization Summary

Total Interest Paid	Monthly Principal & Interest	Number of Payments	Total Payments
Base Calculations	-	-	-

Original Loan Amount
Use calculator above to find loan amount needed

Additional Amortization Information

This chart illustrates how balances decrease over time for a fixed rate mortgage.

This chart shows how payments are split between principle and interest payments over time.

Your full amortization schedule

Month/Year	Payment Amount	Interest Paid	Principal Paid		Mortgage Balance
Use calculator above to see your full amortization schedule