This amortization calculator will show how much of your calculated monthly payment will go to pay the principal and how much will go to pay the interest on your loan along with an amortization schedule.
Once you enter all the necessary information into the amortization calculator, it will yield several results
such as the monthly payment, total remaining balance, total principal and total interest paid.
To determine these results, the calculator uses these numbers:
Loan amount: The loan amount is the principal balance of your mortgage that you owe to the lender, not including interest.
Interest rate: This is a percentage of the loan amount borrowers must pay in addition to the cost of the mortgage.
Loan term: The loan term is the amount of time it will take to pay back the mortgage.
The monthly payment for your mortgage will initially cover the interest, and then slowly subtract the money you owe on your home loan over time. However, it's important to note that this doesn’t include other home expenses such as insurance, property taxes or utilities.
The total remaining balance is how much you still owe in order to pay off your home, while the total principal paid is the amount you borrowed. The total interest paid is determined by your interest rate and how much this stacks up every month.
The examples created by this calculator are estimates based on the information you have supplied and are for illustrative purposes only. Please note that financing may not be available for all scenarios. The advice of a professional should be consulted when buying a home or financing a mortgage loan.