Mortgage Loan Calculator with Amortization

The Amortization Mortgage Calculator is a professional, high quality calculator for generating a Mortgage Amortization Schedule that can help you estimate your monthly mortgage payments.

Amortization Mortgage Calculator

Why Use a Mortgage Amortization Calculator?

When you’re paying a mortgage, we all know that it can get a little confusing. There are a lot of terms used…principal, interest, fixed loans, etc. Even if you have some knowledge about mortgages, you really need to focus to get the whole picture.

One of the things that can help you put everything into perspective is something called amortization. When you understand this concept, you can get a better idea of how your mortgage is calculated and what exactly you’re paying when it comes to the principal and interest. Using tools like an amortization mortgage calculator can also help you save money in the long run. 


What is amortization?

Amortization is when a loan is spread out into a series of fixed payments. This process is used for loans for the home and automobiles. While your monthly payment remains the same, the distribution of your payment will change over time. With each payment, a portion goes towards the interest (what your lender gets paid for giving you the loan) and another portion towards reducing your loan balance (the loan principal).

At the beginning of your loan period, your interest costs are higher. So you’ll see more of your payment goes towards the interest than the principal loan payment. As time goes on, more of your payment will go towards the principal as the amount you’re paying in interest goes down.

How is amortization on a loan calculated?

Using a loan calculator with amortization is the best way to see the breakdown of your numbers. For many people, seeing the numbers is much easier than reading about them. 

Amortization on a loan is calculated by taking the total amount of the loan and multiplying it by the interest rate on the loan. If a loan has monthly payments, divide the answer by 12. This gives you your monthly interest amount. Subtract the interest from the total monthly payment. The remainder is what goes towards the principal.

You keep doing this process but start with the remaining principal balance from the previous month rather than the original amount of the loan. When you’re done breaking down your entire loan term, your principal should be zero.

While you could sit and do this for a 15 or 30-year mortgage, it’s much easier and faster to use an amortization mortgage calculator. You simply input the following:

  • Mortgage amount
  • Mortgage term in years or months
  • Interest rate per year

The calculator will then give you your monthly payments and tell you how much interest you’re paying on your loan once it is repaid in full.

How is a monthly mortgage calculated?

Calculating your monthly mortgage without the help of an online calculator can be confusing. It requires using a standard mathematical formula that may make you feel like you’re back in a high school algebra class.

The formula looks like this:

M= P[r(1+r)^n/((1+r)^n)-1)]

In this equation, M= the total monthly mortgage payment, P= the principal loan amount, and r=your monthly interest rate (the interest rate is given to you annually, so you’ll have to divide it by 12 to get the monthly rate), n=the number of payments over the loan’s lifetime. When you multiply the number of years in your loan by 12, you get the number of payments for your loan.

While you could sit and do the math if you’d like, you can also use online mortgage calculators and an amortization mortgage calculator to figure out your payments, as well as the interest.

What is the benefit of printing a mortgage amortization schedule?

An amortization schedule can be beneficial in several ways. It’s not only an easy way to see how much principal and interest you’ve paid, but you can also see how to shorten the length of the mortgage by making extra payments. You can even see how much you would need to pay every month if your goal is to pay off your mortgage in 20 years versus 30 years.

Having an amortization schedule also helps people decide if they can afford monthly payments and which payments are better for them. They can see whether lower payments are resulting in them paying more interest, which is something they probably won’t want to do.

Also, an amortization schedule allows people to compare lenders and decide whether a 15 or 30-year mortgage is best for them. Some people use this information to see whether it’s in their best interest to refinance a loan. With the numbers clearly laid out, you can see which payment schedule best fits your budget and lifestyle. 

An amortization schedule can even show you how much principal you will owe on a future date. By using a loan calculator with amortization, you can also figure out how much equity you have. Having all of this information at your fingertips can help you budget better and can help you become more financially sound.

This mortgage loan calculator is perfect for real estate agents, lenders, home owners, and future home owners. Generate an informative amortization schedule both on page & as a PDF report that can be emailed directly to your inbox.

Generate an informative amortization schedule both on page & as a PDF report that can be emailed directly to your inbox.

Generating and receiving a copy of the PDF amortization schedule can help you set better expectations when searching for a mortgage that works for you.

FICO® score at least 580 = 3.5% down payment.
FICO® score between 500 and 579 = 10% down payment.
MIP (Mortgage Insurance Premium ) is required.
Debt-to-Income Ratio < 43%.
The home must be the borrower’s primary residence.
Borrower must have steady income and proof of employment.

24 continuous months, or
The full period (at least 181 days) for which you were called or ordered to active duty, or
At least 181 days if you were discharged for a hardship, a reduction in force, or for convenience of the government, or
Less than 181 days if you were discharged for a service-connected disability

See additional requirements at the VA home loan programs page.

U.S. citizenship or permanent residency
Credit score of at least 640
Stable income
Generally 12 months of no late payments or collections
Adjusted household income is equal to or less than 115% of the area median income
Property serves as the primary residence and is located in a qualified rural area
Property is located in a USDA qualified rural area

Current United States Mortgage Rates

FHA Loan Purchase - 30 Year Fixed

1W Change 0.14%
1W Change 0.13%

Conventional Loan Purchase - 30 Year Fixed

1W Change 0.07%
1W Change 0.06%

VA Loan Purchase - 30 Year Fixed

1W Change 0.09%
1W Change 0.11%

See more mortgage rates on Zillow