LOANS & MORTGAGES CHANNEL
Mortgage Amortization Calculator
Generate a complete monthly or yearly mortgage interest amortization schedule.
Calculator Variables
Calculation Overview
Generate a full monthly amortization schedule for your mortgage to see how much goes to principal vs. interest.
Mathematical Model & Formula
M = P * [r(1+r)^n] / [(1+r)^n - 1]
Calculates the amortization rate needed to bring the balance to exactly zero over the mortgage term.
Variables Defined:
- M: Monthly mortgage payment
- P: Starting loan balance
Worked Example Scenario
Scenario: A 30-year, $240,000 mortgage at 6.5%.
- r = 0.065 / 12 = 0.005417
- n = 360
- Compute mortgage factor.
Result: Monthly payment is $1,517.
Frequently Asked Questions
What is amortization?
The systematic scheduling of regular loan payments to steadily pay off both interest and principal over a fixed timeframe.