Mortgage Calculator
Calculate your monthly mortgage payments and view amortization schedule
Mortgage Summary
Amortization Chart
Amortization Schedule
| Year | Principal Paid | Interest Paid | Total Principal Paid | Total Interest Paid | Remaining Balance |
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Understanding Mortgages
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. Mortgages are typically long-term loans, with common terms ranging from 15 to 30 years.
Understanding Mortgage Payments
Mortgage payments typically consist of four components, often referred to as PITI: Principal (the amount borrowed), Interest (the cost of borrowing), Taxes (property taxes), and Insurance (homeowner's insurance and possibly mortgage insurance). Our calculator focuses on the principal and interest components, which form the base of your mortgage payment.
Amortization
Amortization refers to the process of paying off a debt over time through regular payments. In a typical mortgage, early payments are primarily interest, with a small portion going toward the principal. As time passes, more of each payment goes toward the principal, eventually leading to full ownership of the property.
Factors Affecting Mortgage Payments
Several factors influence your mortgage payment amount, including the loan amount (principal), interest rate, loan term, and payment frequency. A higher loan amount or interest rate increases payments, while a longer term reduces monthly payments but increases the total interest paid over the life of the loan.