Amortization Calculator

See how much of your monthly payment may end up going toward the principal, and how much may end up as an interest payment over the life of the loan. Not all monthly mortgage payments are the same. You might be surprised to discover how much of your monthly payment goes straight to interest repayment during the first decade of your loan. Our amortization calculator breaks down how much interest and principal are covered with each payment.


Amortization Calculator Help

Amortization is the repayment of a mortgage loan through monthly installments of principal and interest for a duration of a set time period, usually a 30-year term. Use this calculator to understand your home repayment process. You can also use this calculator before you purchase a home to discover which payment term works better for your financial goals.

To use the calculator, enter the following information:

Loan Amount

Enter the amount of your home loan, not the purchase price of your house. You do not want to include your down payment in this section.

Loan Term

Choose from 15-year fixed, 30-year fixed, and 5/1 ARM. Your loan term will affect how much you pay in interest for the life of the loan.

Interest Rate

Fill in your exact interest rate for accurate calculations. Even a fraction of a percent will make a difference in how much you pay. If you haven’t purchased a home yet, keep the pre-filled rate in this box.

Advanced Report

This will show you how much of each monthly payment goes to interest and principal. The report will also show you the remainder of the loan for each year.

Does Your Amortization Schedule Fit Your Finance Goals?

The amortization calculator is a useful tool because it shows homeowners how much extra money they are paying towards interest for the life of their home loan. If you want to pay less for your house in the long run, you may choose to either pay more principal only payments on top of your monthly mortgage payment or refinance into a loan with better terms.

Refinancing your loan into one with a better interest rate and shorter loan term may save you money on your home purchase. Refinancing from a 30-year term to a 15-year term may increase your monthly payments, but it could also drastically cut the amount of money you pay towards interest each month and for the duration of the loan.

Is this the right money move for you? Let’s find out together! Contact Homestead Mortgage’s advisor today to discuss refinancing options, fees, and savings. Don’t have a home yet? Our mortgage experts can help you start the process of finding the best home loan for you.

You have questions, we have answers.

At Homestead Mortgage we lend where we live. That means that for us, you’re more than just a borrower, you’re our neighbor. We will help you find the right mortgage solution for your specific needs.