📅 Mortgage Amortization Calculator
Early mortgage payments are mostly interest because interest is charged on the full balance. This calculator shows the monthly payment and then walks through the first twelve payments so you can see the split between interest and principal in year one.
For the complete month-by-month schedule of the whole loan, use the full amortization calculator.
How to use this calculator
Enter the loan amount, annual rate and term to get the monthly payment and a breakdown of how much of the first year goes to interest versus principal.
- Type the Loan amount.
- Enter the Annual interest rate.
- Pick a Loan term of 30, 20, 15 or 10 years.
- Press Calculate to see the payment and the year-one split.
Frequently asked questions
Why is the first year mostly interest?
Interest is charged on the outstanding balance, which is largest at the start. Each payment first covers that interest, and only the remainder reduces the balance.
What does the year-one snapshot show?
The twelve payments added up and split: how many dollars went to interest and how many actually reduced the loan balance in the first year.
Can you give an example?
A $240,000 loan at 6.5% over 30 years has a monthly payment of about $1,516.96. In year one roughly $15,521 goes to interest and only about $2,683 to principal.
Where is the full schedule?
This is a snapshot tool. For the complete month-by-month table of the whole loan, use the full amortization calculator.