# Amortization Schedule Calculator

An amortization calculator can show you how your principal and interest are paid over the life of your loan.

## What Is An Amortization Schedule?

An amortization schedule is a table that shows homeowners how much money they will pay in principal (starting amount of the loan) and in interest over time. It shows the regular payment on your mortgage over the years and each payment is applied to the principal balance and interest.

• Determine how much is paid toward your principal balance or interest during any given payment.
• Calculate how much of your total principal balance and interest have been paid by a particular date.
• Show how much of your principal balance you owe on a given date.
• Determine how much time you can cut off your mortgage by making extra payments.

## How Do You Calculate Amortization?

Homeowners can calculate the amortization of their mortgage by plugging their information into an amortization calculator, which uses a formula to calculate your monthly mortgage payments

By using an amortization calculator, you can:

• Calculate principal and interest paid in any particular payment.
• Calculate the total principal and interest paid on a particular date.
• Calculate how much principal is owed now or in the future.

## How Do I Create A Loan Amortization Schedule?

Your loan amortization schedule tells you how much you need to make in monthly payments to pay off your mortgage within the term length of the loan. The key number when creating your loan amortization schedule is your monthly payment.

Your monthly payment is calculated by taking your current loan amount, mortgage term in years, interest rate per year and the state you reside in and inputting that information into the amortization schedule calculator.

## How To Use An Amortization Schedule Calculator

To use our amortization schedule calculator, you will need a few pieces of information, including the principal balance for your mortgage, your annual interest rate, the term of the mortgage and your state of residency. You can also enter additional payments to see how this affects your overall mortgage length.

• How much principal you owe now or will owe in the future.
• How much extra you need to pay in order to reduce mortgage length.
• How much equity you have.

## Amortization Calculator Results Explained

Once you enter all the necessary information into the amortization calculator, it will yield several results such as the monthly payment, total remaining balance, total principal and total interest paid.

To determine these results, the calculator uses these numbers:

• Loan amount: The loan amount is the principal balance of your mortgage that you owe to the lender, not including interest.
• Interest rate: This is a percentage of the loan amount borrowers must pay in addition to the cost of the mortgage.
• Loan term: The loan term is the amount of time it will take to pay back the mortgage.

The monthly payment for your mortgage will initially cover the interest, and then slowly subtract the money you owe on your home loan over time. However, it's important to note that this doesn’t include other home expenses such as insurance, property taxes or utilities.

The total remaining balance is how much you still owe in order to pay off your home, while the  total principal paid is the amount you borrowed. The total interest paid is determined by your interest rate and how much this stacks up every month.

## How Many Years Will Come Off My Mortgage By Paying Extra?

To see how many years you can take off your mortgage, try entering a shorter loan length in the amortization schedule calculator and see if the higher monthly payment fits in your budget, as it can save you in interest in the future. However, if the higher monthly payments aren’t affordable, you could consider making extra principal payments. Homeowners with 30-year mortgages will pay a lot more in interest than a 15-year mortgage since interest rates on shorter term loans are typically lower than long-term ones.

By making just one extra principal payment annually, you could take 5 years off a 30-year mortgage. You can also make extra payments if you have expendable income from a bonus or tax refund. On the other hand, if you’re facing financial hardship, you can resume the extra payment the following year.