How to use the mortgage amortization calculator
- Enter the loan amount, the interest rate and the loan term in years.
- Pick the first payment date, usually the first of the month about a month after closing.
- Enter the home value at purchase and your PMI rate if you put down less than 20%. Leave the value blank if there's no PMI.
- Add property tax and home insurance per year to include the escrow part of the payment.
- Optionally add extra principal each month.
- Read the payment, then scroll through the yearly summary and the monthly schedule.
How the schedule is built
The principal and interest payment stays fixed for the life of the loan. Early on, most of it is interest; each month the balance falls a little, so a little more goes to principal. PMI is charged as a yearly percentage of the original loan, split into monthly amounts. Under the federal Homeowners Protection Act, a lender must end borrower-paid PMI on a conventional loan once the balance is scheduled to reach 78% of the home's original value, and you can ask for it to be cancelled at 80%. The calculator stops PMI once the balance falls to 78%.
Worked example
The defaults are a $360,000 loan on a $400,000 home (10% down) at 6.5% for 30 years, with 0.5% PMI, $4,400 property tax and $1,500 insurance a year:
- Monthly rate: 0.065 ÷ 12 = 0.0054167, and n = 360
- Principal and interest: 360,000 × 0.0054167 ÷ (1 − 1.0054167^−360) = $2,275.44
- PMI: 360,000 × 0.005 ÷ 12 = $150.00
- Escrow: (4,400 + 1,500) ÷ 12 = $491.67
- First-year payment: 2,275.44 + 150.00 + 491.67 = $2,917.11
- Payment 1: $1,950.00 interest and $325.44 principal, leaving $359,674.56
- PMI stops after 109 payments, when the balance first falls below 78% × 400,000 = $312,000. It costs $16,350 in total.
- Over 30 years you pay $459,160.16 of interest
With $200 extra a month the payment becomes $3,117.11, PMI ends after 75 payments instead of 109, and the loan is paid off in 23 years 11 months, 6 years 1 month early.
Reading the schedule
The yearly summary adds up each 12 payments: principal, interest, PMI, tax and insurance, and the balance at the end of the year. The monthly schedule lists every payment with its date, so you can see exactly where you'll be at any point, for example when you plan to sell or refinance. The chart shows the shift from interest to principal over the years; on the default loan, principal doesn't overtake interest until payment 233.
| Year | Principal | Interest | Balance at year end |
|---|---|---|---|
| 1 | $4,023.81 | $23,281.53 | $355,976.19 |
| 5 | $5,214.94 | $22,090.40 | $336,999.52 |
| 10 | $7,211.31 | $20,094.03 | $305,194.05 |
| 20 | $13,789.35 | $13,515.98 | $200,395.02 |
| 30 | $26,367.78 | $937.56 | $0.00 |
This calculator is built for home loans: dated monthly rows, PMI and escrow. For any other fixed-rate loan, the general amortization calculator gives a yearly schedule.
Frequently asked questions
When does PMI come off my mortgage?
On a conventional loan, PMI ends automatically when your balance is scheduled to reach 78% of the home's original value, and you can ask to cancel it at 80% if your payments are current. Extra principal payments get you there sooner. See how to get rid of PMI for the details.
Why does so little of my payment go to principal at first?
Interest is charged on the balance, which is largest at the start. On a $360,000 loan at 6.5%, the first month's interest is $1,950, leaving only $325.44 of the $2,275.44 payment for principal.
Does my payment change over time?
The principal and interest part doesn't on a fixed-rate loan. The escrow part changes when your property tax or insurance changes, and the total drops when PMI ends. Your lender reviews escrow once a year.
Why does my lender's schedule differ slightly?
Lenders round each month's interest to the cent and adjust the last payment, and some count interest by days. Your first payment may also include interim interest from the closing date. Totals should still match within a few dollars.
Related calculators
- Amortization Calculator — Loan amortization schedule by year, with the payoff date and what an extra monthly payment saves.
- Mortgage Calculator — Your full monthly housing cost, including property tax, insurance, PMI and HOA fees.
- Mortgage Payoff Calculator — See how extra payments, a lump sum or biweekly payments cut years and interest off your mortgage.
- Refinance Calculator — Whether refinancing pays off: new payment, monthly savings, break-even month and lifetime interest.
Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.