Mortgage Amortization Calculator
Calculate your monthly mortgage payments with a detailed amortization schedule. See how much interest you’ll pay over the life of your loan and track principal vs. interest.
Step 1: Mortgage Details
Understanding Amortization
Amortization is the process of paying off a loan over time through regular payments. Each payment covers both interest and principal, with the interest portion decreasing over time as the principal balance reduces.
Step 2: Calculation Options
Mortgage Formula
Monthly Payment Calculation:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where: M = Monthly payment, P = Loan principal, i = Monthly interest rate, n = Number of payments
Mortgage Amortization Results
Monthly Mortgage Payment
Amortization Schedule
This table shows how each payment is split between principal and interest over the life of the loan.
| Payment Date | Payment | Principal | Interest | Total Interest | Balance |
|---|
Mortgage Calculation Formulas
Monthly Payment Formula
Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Monthly payment
P = Loan principal amount
i = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in years × 12)
Example: £250,000 loan at 4.5% for 30 years → M = £1,266.71
Interest Portion Calculation
Formula: Interest Payment = Remaining Balance × Monthly Interest Rate
Example: First payment on £250,000 loan at 4.5% → Interest = £250,000 × 0.00375 = £937.50
Principal Portion Calculation
Formula: Principal Payment = Monthly Payment – Interest Payment
Example: First payment: £1,266.71 – £937.50 = £329.21 principal
Remaining Balance Calculation
Formula: New Balance = Previous Balance – Principal Payment
Example: After first payment: £250,000 – £329.21 = £249,670.79
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