Amortization Schedule
| # | Payment Date | Payment | Principal | Interest | Balance |
|---|
What is an MTG amortization calculator?
An MTG amortization calculator (mortgage amortization calculator) helps you break a home loan into month-by-month payments. Instead of only showing one monthly payment number, it shows exactly how much of each payment goes to principal and how much goes to interest over time.
This matters because mortgages are front-loaded with interest. In the early years, a larger share of your payment goes to interest. Later, more goes to principal. Seeing that progression can help you plan refinancing, prepayments, and long-term savings goals.
How to use this mortgage calculator
- Loan Amount: Enter how much you are borrowing.
- Annual Interest Rate: Your note rate (not APR).
- Loan Term: Common choices are 15 or 30 years.
- Extra Monthly Payment: Optional prepayment to reduce payoff time and total interest.
- Start Month: Used to project payment dates in the amortization schedule.
When you click Calculate Amortization, you get a payment summary and a full monthly table with running balance.
Why amortization is important for homeowners
1) Understand the real cost of borrowing
The mortgage principal is only part of what you pay. Interest can be substantial across decades. A clear amortization schedule tells you your true borrowing cost.
2) See the impact of extra payments
Even small extra principal payments can save thousands in interest and shorten your mortgage term. This calculator shows those differences instantly.
3) Support refinance decisions
If you are considering refinancing, compare your current schedule with a new one. Focus on interest savings, closing costs, and breakeven timing.
Mortgage payment formula (principal & interest)
The monthly principal-and-interest payment is typically:
M = P × r / (1 - (1 + r)^-n)
- M = monthly mortgage payment
- P = loan principal
- r = monthly interest rate (annual rate / 12)
- n = total number of monthly payments
If rate is 0%, payment is simply principal divided by total months.
Tips to pay off your mortgage faster
- Round up your monthly payment.
- Make one extra principal payment per year.
- Apply bonuses or tax refunds to principal.
- Switch from monthly to biweekly strategies (if supported by your lender).
- Avoid extending your term unless needed for cash flow.
Common mistakes to avoid
- Comparing loans only by monthly payment.
- Ignoring total interest over the full term.
- Confusing APR with note rate when modeling amortization.
- Forgetting that taxes/insurance/HOA are separate from P&I.
Frequently asked questions
Does this include property tax and insurance?
No. This calculator focuses on principal and interest amortization only.
Can I model extra principal payments?
Yes. Enter any monthly extra payment to estimate interest savings and a faster payoff date.
Is this accurate for fixed-rate mortgages?
Yes, for fixed-rate assumptions. Adjustable-rate loans require rate-change scenarios.