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.
Your Amortization Summary
|Monthly Principal & Interest||Number of Payments||Total Payments||Original Loan Amount|
Additional amortization information
This chart illustrates how balances decrease over time for a fixed rate mortgage.
This chart shows how payments are split between principal and interest payments over time.
|Month/Year||Payment Amount||Interest Paid||Principal Paid||