Mortgage amortization calculator
This mortgage amortization calculator builds the full payment schedule and shows how much of every payment goes to principal and how much to interest.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,129.60 | $18,107.88 | $276,870.40 |
| 2 | $3,339.22 | $17,898.26 | $273,531.18 |
| 3 | $3,562.86 | $17,674.62 | $269,968.32 |
| 4 | $3,801.47 | $17,436.01 | $266,166.85 |
| 5 | $4,056.06 | $17,181.42 | $262,110.79 |
| 6 | $4,327.69 | $16,909.79 | $257,783.10 |
| 7 | $4,617.53 | $16,619.95 | $253,165.57 |
| 8 | $4,926.77 | $16,310.71 | $248,238.80 |
| 9 | $5,256.72 | $15,980.76 | $242,982.08 |
| 10 | $5,608.79 | $15,628.69 | $237,373.29 |
| 11 | $5,984.41 | $15,253.07 | $231,388.88 |
| 12 | $6,385.19 | $14,852.29 | $225,003.69 |
| 13 | $6,812.85 | $14,424.63 | $218,190.84 |
| 14 | $7,269.11 | $13,968.37 | $210,921.73 |
| 15 | $7,755.93 | $13,481.55 | $203,165.80 |
| 16 | $8,275.35 | $12,962.13 | $194,890.45 |
| 17 | $8,829.56 | $12,407.92 | $186,060.89 |
| 18 | $9,420.89 | $11,816.59 | $176,640.00 |
| 19 | $10,051.82 | $11,185.66 | $166,588.18 |
| 20 | $10,725.05 | $10,512.43 | $155,863.13 |
| 21 | $11,443.30 | $9,794.18 | $144,419.83 |
| 22 | $12,209.68 | $9,027.80 | $132,210.15 |
| 23 | $13,027.40 | $8,210.08 | $119,182.75 |
| 24 | $13,899.86 | $7,337.62 | $105,282.89 |
| 25 | $14,830.77 | $6,406.71 | $90,452.12 |
| 26 | $15,823.98 | $5,413.50 | $74,628.14 |
| 27 | $16,883.75 | $4,353.73 | $57,744.39 |
| 28 | $18,014.49 | $3,222.99 | $39,729.90 |
| 29 | $19,220.97 | $2,016.51 | $20,508.93 |
| 30 | $20,508.93 | $729.27 | $0.00 |
Why early years are interest-heavy
On a 30-year mortgage at 6.5%, about 86% of the first payment is interest. The balance falls slowly at first and faster later, which is why you still owe about 94% of the loan after five years. The yearly view shows this clearly, and the balance chart makes the curve visible.
Using the schedule
Use it to see the balance on a given date if you plan to sell or refinance, to estimate the interest paid in a given tax year, and to see the effect of an extra monthly payment. Enter an extra amount in the calculator and the schedule updates to show the shorter loan.
$280,000 loan: 15-year vs 30-year
On a $280,000 mortgage, a 30-year loan at 6.5% costs $1,769.79 a month in principal and interest and $357,125 in total interest. A 15-year loan at a rate about 0.6 points lower costs $2,347.70 a month, $577.91 more, but cuts the interest to $142,586, saving $214,539. The right choice depends on whether the higher payment fits your budget with room to spare.
| Loan | Principal & interest | Total interest | Total paid |
|---|---|---|---|
| 10-year at 5.9% | $3,094.53 | $91,344 | $371,344 |
| 15-year at 5.9% | $2,347.70 | $142,586 | $422,586 |
| 20-year at 5.9% | $1,989.89 | $197,572 | $477,572 |
| 30-year at 6.5% | $1,769.79 | $357,125 | $637,125 |
What each 6.5% ± 1 point does to the payment
A one-point change in your mortgage rate moves the payment on $280,000 by roughly $188.01 a month and the lifetime interest by about $67,684 over 30 years. That is why it pays to compare several lenders on the same day.
| Rate | Principal & interest | Total interest | Difference vs 6.5% |
|---|---|---|---|
| 5.5% | $1,589.81 | $292,331 | −$64,794 |
| 6% | $1,678.74 | $324,348 | −$32,777 |
| 6.5% | $1,769.79 | $357,125 | +$0 |
| 7% | $1,862.85 | $390,622 | +$33,497 |
| 7.5% | $1,957.80 | $424,809 | +$67,684 |
Down payment and PMI on a $350,000 home
With less than 20% down, lenders charge private mortgage insurance (PMI), commonly 0.3% to 1.5% of the loan per year. This page assumes 0.6%. PMI usually ends when you reach 80% of the home's original value, which you can reach sooner with extra payments.
| Down payment | Loan amount | PMI / month | Total monthly payment |
|---|---|---|---|
| 5% ($17,500) | $332,500 | $166.25 | $2,713.71 |
| 10% ($35,000) | $315,000 | $157.50 | $2,594.34 |
| 20% ($70,000) | $280,000 | $0.00 | $2,215.62 |
What income does a $350,000 home need?
Lenders often look at a front-end ratio of about 28% of gross income for housing costs. A total payment of $2,215.62 implies a gross income near $95,000 a year, and lenders also weigh your other debts, which usually must keep total payments under about 36% to 43% of income.
Year one is interest-heavy: $18,108 of interest against $3,130 of principal repaid, which is why extra payments early on have the most effect.
How fast you build equity
Equity here is the home price minus the loan balance, assuming the price stays flat. Appreciation, if any, would add to it.
| After | Loan balance | Principal repaid | Equity (flat value) |
|---|---|---|---|
| 5 years | $262,111 | $17,889 | $87,889 |
| 10 years | $237,373 | $42,627 | $112,627 |
| 15 years | $203,166 | $76,834 | $146,834 |
| 20 years | $155,863 | $124,137 | $194,137 |
Frequently asked questions
What is amortization?
Spreading a loan into equal payments over its term, with each payment covering interest first and then reducing principal.
How much of my payment is interest?
Early on, most of it. At 6.5% on a 30-year loan, about 86% of the first payment is interest.
What is the monthly payment on a $280,000 mortgage?
At 6.5% over 30 years, principal and interest on $280,000 is $1,769.79. With the estimated tax, insurance, HOA and PMI above, the total comes to about $2,215.62 a month.
What is included in a monthly mortgage payment?
Principal and interest are the loan itself. Many lenders also collect property tax and homeowners insurance in escrow, and charge PMI if your down payment is under 20%. HOA dues are paid separately.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.