Interest starts with the balance
Each month's interest is based on the unpaid principal. A larger early balance creates a larger interest charge.
Freddie Mac amortization guidanceMortgage schedule
Mortgage Amortization Calculator
See where the scheduled principal-and-interest payment goes as the loan balance declines. The annual schedule keeps the payment, remaining interest, year-end balance, and estimated payoff date in one readable view.
Payment schedule
Follow the balance from the next payment to payoff
Review how each year divides scheduled payments between principal and interest.
Amortization summary
Scheduled principal and interest over the remaining term.
Monthly payment
$1,896.20
Scheduled principal and interest
Total remaining interest
$382,633
Across 30 years
Estimated payoff
Add a first payment month
360 scheduled payments
Total principal and interest
$682,633
Excludes taxes, insurance, fees, and dues
Annual payment schedule
Year-end totals make the principal shift easier to scan.
| Year | Principal | Interest | Ending balance |
|---|---|---|---|
| 1 | $3,353 | $19,401 | $296,647 |
| 2 | $3,578 | $19,177 | $293,069 |
| 3 | $3,817 | $18,937 | $289,252 |
| 4 | $4,073 | $18,681 | $285,179 |
| 5 | $4,346 | $18,409 | $280,833 |
| 6 | $4,637 | $18,118 | $276,196 |
| 7 | $4,947 | $17,807 | $271,249 |
| 8 | $5,279 | $17,476 | $265,970 |
| 9 | $5,632 | $17,122 | $260,338 |
| 10 | $6,009 | $16,745 | $254,328 |
| 11 | $6,412 | $16,343 | $247,916 |
| 12 | $6,841 | $15,913 | $241,075 |
| 13 | $7,299 | $15,455 | $233,776 |
| 14 | $7,788 | $14,966 | $225,987 |
| 15 | $8,310 | $14,445 | $217,677 |
| 16 | $8,866 | $13,888 | $208,811 |
| 17 | $9,460 | $13,294 | $199,351 |
| 18 | $10,094 | $12,661 | $189,257 |
| 19 | $10,770 | $11,985 | $178,487 |
| 20 | $11,491 | $11,263 | $166,996 |
| 21 | $12,261 | $10,494 | $154,735 |
| 22 | $13,082 | $9,673 | $141,653 |
| 23 | $13,958 | $8,797 | $127,695 |
| 24 | $14,893 | $7,862 | $112,803 |
| 25 | $15,890 | $6,864 | $96,912 |
| 26 | $16,954 | $5,800 | $79,958 |
| 27 | $18,090 | $4,665 | $61,868 |
| 28 | $19,301 | $3,453 | $42,567 |
| 29 | $20,594 | $2,161 | $21,973 |
| 30 | $21,973 | $781 | $0 |
Planning estimate
This model assumes a fixed-rate, fully amortizing mortgage and that extra amounts are applied directly to principal. Confirm payment-crediting rules and any prepayment penalty with the loan servicer.
How amortization works
The payment can stay level while its two parts keep changing
On a typical fixed-rate, fully amortizing mortgage, the scheduled principal-and-interest payment is designed to retire the balance by the end of the term. What changes is how much of each payment goes to interest and how much reduces principal.
Principal is what remains
After scheduled interest is covered, the rest of the principal-and-interest payment reduces the balance.
The balance changes the next month
Because principal was reduced, the next interest calculation starts from a slightly smaller amount.
The pattern reverses over time
The interest share generally declines while the principal share rises, even though the scheduled payment remains level.
Use the schedule
A balance projection is useful when a decision has a date attached
The schedule becomes more practical when you connect it to a question: how much might still be owed when you move, when could PMI become reviewable, or how much interest remains if the loan is kept to maturity?
This schedule intentionally excludes PITI
Taxes, homeowners insurance, mortgage insurance, and HOA dues affect the monthly household cost, but they do not pay down the loan balance. Keeping them outside the amortization table makes the principal-interest relationship clear.
Planning a future sale
Find the projected balance near the expected sale year, then remember that the actual net proceeds also depend on selling costs and the property's value.
Reviewing refinance timing
Compare the projected balance and remaining term with a refinance proposal. Restarting a loan can lower a payment while extending the debt.
Watching equity grow
Scheduled principal reduction increases ownership in the home, but market value changes independently and is not projected by this calculator.
Checking the official record
Use the mortgage statement for the actual balance. The calculator is a planning model and does not know the servicer's payment history or adjustments.
Calculation transparency
The schedule repeats the same calculation one month at a time
The estimate uses a fixed-rate, fully amortizing loan model. It does not copy a lender statement; it projects the remaining balance from the inputs supplied and makes the calculation sequence visible.
- 1
Calculate the scheduled payment
The remaining balance, annual interest rate, and number of monthly payments determine the level principal-and-interest payment.
- 2
Calculate each month's interest
The prior month's balance is multiplied by the annual rate divided by 12. The rest of the scheduled payment reduces principal.
- 3
Carry the new balance forward
Each principal amount is subtracted before the following month's interest is calculated. Annual rows add the twelve monthly results.
- 4
Keep outside costs separate
Property taxes, insurance, mortgage insurance, HOA dues, fees, and servicing adjustments are excluded because they do not amortize the loan principal.
Worked example
First year of a $300,000 remaining balance
This illustration uses the calculator's fixed-rate schedule and rounds displayed dollar amounts to the nearest dollar.
Assumptions
- Remaining balance
- $300,000
- Interest rate
- 6.50%
- Time remaining
- 30 years
- Payments modeled
- 12 months
Estimated result
- Monthly principal and interest
- $1,896.20
- Principal paid in year one
- $3,353
- Interest paid in year one
- $19,401
- Balance after year one
- $296,647
The example shows why the early payment is interest-heavy. Your servicer's statement remains the source of truth for the actual balance and payment history.
Clear up the details
Common questions
Why is more interest paid at the beginning of a mortgage?
Interest is calculated from the outstanding principal balance. That balance is largest near the beginning, so more of a level principal-and-interest payment goes to interest. As principal falls, the interest portion generally falls and the principal portion rises.
Does the amortization payment include taxes and insurance?
No. This schedule isolates principal and interest. Property taxes, homeowners insurance, mortgage insurance, HOA dues, and other ownership costs are separate from the loan amortization shown here.
Why might my statement differ slightly from the calculator?
A statement can reflect the loan's exact payment dates, rounding method, adjustments, fees, late payments, or payment application history. Use the servicer's records for the official balance and payoff amount.
Can I use the calculator for an existing mortgage?
Yes. Enter the current principal balance, note rate, remaining years, and next payment month. This produces a forward-looking schedule for the debt that remains rather than recreating the original loan from closing.