Amortization Schedule Calculator

Loan amortization is the process of paying off a loan through regular payments, where each payment covers both interest and principal. In the early months, most of each payment goes toward interest; over time, a larger share goes toward reducing the principal balance. The amortization schedule produced by this calculator shows the exact breakdown for every payment.

Because interest is calculated on the outstanding principal balance, which is highest at the start of the loan. A 300,000 dollar mortgage at 7% means the first month charges about 1,750 dollars in interest. As you make payments and reduce the balance, the interest portion of each payment shrinks while the principal portion grows.

Making extra principal payments reduces your outstanding balance faster, which reduces the interest charged on future payments. Even an extra 100 dollars per month on a 30-year mortgage can save tens of thousands of dollars and cut several years off the loan term. Enter a monthly extra payment in this calculator to see your specific savings.

Most US conventional conforming mortgages (Fannie Mae or Freddie Mac backed) do not have prepayment penalties. Some non-QM loans, hard money loans, or older mortgages may include prepayment penalty clauses in the first few years. Always check your loan documents before making large lump-sum payments. Auto loans typically do not have prepayment penalties.

A 15-year mortgage has higher monthly payments but builds equity much faster and costs significantly less in total interest. A 30-year mortgage has lower monthly payments and more flexibility but the total interest paid is often double or more. This calculator lets you compare both scenarios by adjusting the loan term.

Loan amortization is the gradual repayment of a loan through scheduled payments, each covering both interest and a portion of the outstanding principal. In the early years of a UK mortgage, interest makes up the larger portion of each payment. The amortization schedule shows the precise split for each payment throughout the loan term.

Interest is charged on the outstanding balance, which is highest at the start. On a 200,000 pound mortgage at 5%, the first payment includes roughly 833 pounds in interest. As payments reduce the balance, interest charges decrease and the capital repayment portion increases each month.

Most UK fixed-rate mortgages allow overpayments of up to 10% of the outstanding balance per year without an early repayment charge. Tracker and variable rate mortgages typically allow unlimited overpayments. Overpaying reduces your balance and interest faster. Check your specific mortgage terms or ask your lender before making large overpayments.

A repayment mortgage (capital and interest) amortizes fully over the term so the balance reaches zero at the end. An interest-only mortgage keeps the balance unchanged throughout the term, requiring a separate repayment vehicle (such as an ISA or endowment). This calculator models repayment mortgages. Use it to see how your balance reduces year by year.

UK mortgages typically have terms of 25-35 years, similar to the US. However, UK interest rate deals (fixed, tracker, or variable) are usually set for shorter periods (2, 5, or 10 years), after which borrowers remortgage. This calculator shows the full amortization over the entire term, regardless of deal period.

Loan amortization is the structured repayment of a loan through regular payments that cover both interest and principal. In the early years, interest makes up the larger share. ASIC Moneysmart provides a loan repayment calculator that shows this split for Australian home loans and personal loans.

Because interest is calculated on the remaining balance, which is at its highest at the start of the loan. On a 500,000 dollar home loan at 6%, the first payment may include around 2,500 dollars in interest. As the balance reduces through repayments, the interest component gradually shrinks.

Most Australian variable rate home loans allow unlimited extra repayments without penalty. Fixed rate loans typically restrict extra repayments to a set amount per year (often 10,000-20,000 dollars) before an early repayment cost applies. Making extra repayments reduces your balance and the interest you pay over the life of the loan significantly.

An offset account holds funds that reduce the balance on which interest is calculated. For example, if you have a 400,000 dollar loan and 50,000 dollars in a linked offset account, you only pay interest on 350,000 dollars. The loan term and payments remain the same, but the interest savings are significant. The amortization schedule changes dynamically as the offset balance changes.

A principal and interest (P and I) loan amortizes fully over the term, reducing the balance to zero. An interest-only loan keeps the balance unchanged during the interest-only period, then switches to P and I repayments on the remaining term, resulting in higher payments and more total interest. This calculator models P and I loans.

Loan amortization is the gradual repayment of a debt through scheduled payments covering both interest and principal. For a Canadian mortgage, the amortization period (typically 25 years) determines how long payments are spread over, while the term (typically 5 years) is the period of the current rate agreement. This calculator shows the full payment schedule.

Because interest is calculated on the outstanding principal, which is at its maximum at the start of the loan. Canadian mortgage interest is compounded semi-annually by law, which differs from US monthly compounding. The effective rate applied monthly is slightly lower than half the stated rate, but the principle that early payments are mostly interest still holds.

Yes. Canadian mortgages typically include prepayment privileges allowing lump-sum payments of 10-20% of the original principal per year and increases to regular payment amounts by a similar percentage. Exceeding these limits may trigger a prepayment charge. Check your mortgage contract for your specific privileges, as they vary by lender.

At the end of each term, you renew your mortgage at the current rate for a new term. The amortization period decreases with each renewal as principal is paid down. You can also switch lenders at renewal time, often without cost, to access a better rate. This calculator shows how much principal remains at any point in the amortization.

A 25-year amortization (the standard maximum for insured mortgages) results in higher monthly payments but significantly less total interest. A 30-year amortization (available only for uninsured mortgages with 20% or more down payment) reduces monthly payments but increases total interest paid. Use this calculator to compare the total cost of each option.