Calculators / Amortization Calculator
Amortization Calculator
See where every payment goes. Watch your balance fall year by year and see how much interest you could save, then get pre-approved in one day.
$350,000 · 6.5% · 30 YEARS$2,212
Monthly principal and interest
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Yes. Is Closer Than You Think.
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See Where Your Money Goes
Your schedule shows how each payment splits between interest and principal. The cards below use the $350,000 example further down this page.
MONTHLY PAYMENT$2,212
Your principal and interest payment.
Principal
$316The part that lowers your balance.
Interest
$1,896The part that pays the lender.
Remaining balance
$349,684What you owe after each payment.
Total interest
$446,406The full interest cost over the life of the loan.
Payoff date
30 yearsWhen your balance reaches zero.
How We Build Your Schedule
Each month we charge interest on your balance. The rest of your payment lowers the balance.
THE FORMULAMonthly interest = Balance × Rate ÷ 12Principal paid = Payment − Interest
Rate = your annual interest rate. Payment = your fixed monthly principal and interest.
01
Loan Amount
What you borrow.
02
Interest Rate
Your annual rate.
03
Loan Term
Years to repay.
04
Start Date
Shows the payoff date.
05
Extra Payment (optional)
See how added principal speeds your payoff.
See a Schedule in Action
Borrowing $350,000 at 6.5% over 30 years? Load it and see the split.
| Item | Example |
|---|---|
| Monthly payment | about $2,212 |
| First payment: interest | about $1,896 |
| First payment: principal | about $316 |
| Interest paid in year 1 | about $22,635 |
| Total interest over 30 years | about $446,406 |
What Changes Your Schedule
Interest Rate
A lower rate means less interest each month.
Loan Term
A shorter term builds equity faster and costs less interest.
Extra Payments
Added principal cuts interest and shortens your loan.
Loan Amount
A smaller balance means smaller payments.
Payment Timing
Paying early in the month trims interest slightly.
The questions buyers ask most
Straight answers to what buyers search before they talk to a lender.
INTEREST=$1,896of $2,212
EARLY PAYMENTS
Why Is So Much of My Early Payment Interest?
Interest is charged on your balance, and your balance is highest at the start. In the example, $1,896 of your first $2,212 payment is interest. Over time the split flips toward principal.
- First payment: about $1,896 interest
- First payment: about $316 principal
- Year 1: about $22,635 in interest
- Over time, more of each payment goes to principal
BUILDING EQUITY
How Fast Do I Build Equity?
Slowly at first, then faster. After 5 years on the example loan your balance is about $327,638. After 15 years it is about $253,957.
| After | Balance (30-year at 6.5%) |
|---|---|
| 1 year | $346,088 |
| 5 years | $327,638 |
| 10 years | $296,716 |
| 15 years | $253,957 |
SHORTER TERMS
What Does a Shorter Term Do?
It raises your payment and cuts your interest sharply. A 15-year loan at 5.75% costs about $173,158 in interest. The 30-year example costs about $446,406.
15-YEAR AT 5.75%$173,158
Total interest
30-YEAR AT 6.5%$446,406
Total interest
Compare a 30-Year and a 15-Year Loan
Both loans borrow $350,000. The 30-year loan uses 6.5%. The 15-year loan uses 5.75%.
| Item | 30-year at 6.5% | 15-year at 5.75% |
|---|---|---|
| Monthly payment | $2,212 | $2,906 |
| Balance after 1 year | $346,088 | $334,853 |
| Balance after 5 years | $327,638 | $264,777 |
| Balance after 10 years | $296,716 | $151,245 |
| Balance after 15 years | $253,957 | $0 |
| Total interest | $446,406 | $173,158 |
Examples are for illustration and do not determine eligibility. Rates vary by loan, credit and market.
Amortization Calculator FAQs
Quick answers to the questions borrowers ask most about amortization.
Have a question? Ask us.
Our loan officers will walk you through your numbers, no pressure and no obligation.
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What is amortization?
It is how your loan is paid off in equal payments over time. Each payment covers interest first, then principal.
Why does my balance drop slowly at first?
Interest takes a larger share of early payments. As your balance falls, more of each payment goes to principal.
How do extra payments help?
They go straight to principal. You pay less interest and finish sooner. Try our Additional Payment Calculator.
Does this include taxes and insurance?
This calculator shows principal and interest. Use our Mortgage Calculator for your full monthly payment.
Can I see the full month-by-month schedule?
Yes. Scroll the schedule or view it by year.
Is a calculator the same as pre-approval?
A calculator gives an estimate. Pre-approval checks your income, credit and assets. We can pre-approve you in one day.
Keep Planning Your Loan
Run the Numbers.
Find Your Yes.
Estimate payments, see your costs and compare your options with every Austin Capital Mortgage calculator.
Loan amount$380,000
5% down30 yr
Rate (example)6.5%
$3,202/mo
P&I $2,402Taxes $600
This calculator provides estimates for informational purposes only. It is not a loan offer, pre-approval or commitment to lend. Actual rates, payments, mortgage insurance and eligibility depend on credit, income, property and program guidelines. Equal Housing Lender.
Estimates exclude taxes, insurance and mortgage insurance.
Equal Housing Opportunity · Austin Capital Mortgage, a brand of Aspire Home Loans, LLC, NMLS #1955132. The Earned Equity Program is offered through a correspondent relationship with Arrive Home™ LLC.
For informational purposes only; not a commitment to lend, an offer of credit, or legal or tax advice. A buyer does not hold title to the home at origination; title transfers upon payoff or refinance.
Qualification is subject to underwriting approval; program terms and availability are subject to change. Not available in Alaska or New York.
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