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Mortgage Amortization Calculator
Break down a fixed-rate mortgage payment by payment. Enter your loan, rate and term, add any extra principal, then press Calculate to see your payment, total interest and how the balance falls each year.
Written by TopicDrill Editorial Team·Updated June 2026
Balance and interest over time
Balance Interest paid
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How amortization works
A fixed-rate mortgage uses a level payment, the same dollar amount every month, that is sized so the loan reaches exactly zero at the end of the term. Each payment first covers the interest due on the current balance, and whatever is left chips away at the principal.
Because the balance starts high, early payments are mostly interest and barely dent what you owe. As the principal falls the interest charge falls with it, so the principal share of each payment grows steadily until the loan is gone. The chart traces that crossover.
A worked example
Take a 300,000 dollar loan at 6.5 percent over 30 years. The monthly payment is about 1,896 dollars and you pay roughly 382,000 dollars of interest across the full term. Add just 200 dollars of extra principal a month and the loan clears about five years early while cutting tens of thousands from that interest bill.
Things to keep in mind
The schedule assumes a fixed rate and on-time payments, so an adjustable rate or a missed month would shift the numbers. For the official explainer on loan terms, see the CFPB loan options guide. To check whether a price fits your budget first, try our mortgage affordability calculator.
Frequently asked questions
What is mortgage amortization?
Amortization is the process of paying off a loan with a level payment that stays the same each month. Early on most of that payment is interest because the balance is large, and over time more of it goes to principal. By the final payment the loan reaches zero.
Why is so much of my early payment interest?
Interest is charged on the balance still owed, and the balance is highest at the start. With a 300,000 dollar loan at 6.5 percent, the first payment is roughly 1,625 dollars of interest and only a few hundred dollars of principal. As the balance shrinks the interest portion falls and the principal portion rises.
How do extra payments change the schedule?
Any amount paid above the scheduled payment goes straight to principal, which lowers the balance faster and cuts the interest charged in every month that follows. Even a modest extra each month can shorten the loan by years and save a large amount of interest, which this tool shows when you enter an extra figure.
Does this include taxes, insurance or PMI?
No. This calculator focuses on principal and interest only, so the schedule and totals reflect the loan itself. Property tax, homeowners insurance and mortgage insurance are real monthly costs but they do not amortize the loan, so they are handled separately in our affordability tool.
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