Mortgage & Loan Repayment Calculator with Amortisation
Calculate monthly mortgage and loan payments, total lifetime interest, early payoff savings, and detailed annual amortisation schedules.
Annual Amortization Schedule (First 10 Years)
| Year | Starting Balance | Principal Paid | Interest Paid | Ending Balance |
|---|
💡 The Front-Loaded Amortization Trap
In the first 5 years of a standard 30-year mortgage at 6.5%, over 80% of every monthly payment goes toward bank interest rather than building your equity. Adding even \$100 to \$200 per month directly to principal in early years shaves years off the loan and saves tens of thousands in compounding interest.
About this tool
How to use it
- Enter your total loan principal amount, annual interest rate (APR %), and loan term in years.
- Select your payment frequency (Monthly or Bi-Weekly) and enter any planned extra principal payments.
- Click 'Calculate Mortgage & Loan Repayment' to see exact installment costs and lifetime interest.
- Inspect the annual amortization schedule to see how much of each year's payment goes toward principal versus interest.
Why it matters
Standard mortgages use compounding amortization formulas where early installments pay predominantly interest. Calculating how extra principal accelerates debt reduction enables homeowners and borrowers to save tens of thousands in financing fees and retire debt years ahead of schedule.
When to use it
Use this calculator when shopping for home mortgages, evaluating refinance offers, estimating auto loans, or budgeting extra monthly payments to eliminate personal debt.
Good to know
Formula used: M = P [r(1 + r)^n] / [(1 + r)^n - 1], where P is principal, r is periodic interest rate, and n is total payment periods.
Common questions
How does extra principal payment shorten my mortgage?
Because interest is calculated on remaining loan balance, every extra dollar paid directly reduces the principal. This prevents future interest from compounding on that portion for the remaining life of the loan.
What is the advantage of bi-weekly mortgage payments?
Paying half your monthly mortgage payment every two weeks results in 26 bi-weekly payments per year—equivalent to 13 full monthly payments. That one extra payment per year can shave 4 to 6 years off a 30-year mortgage.
Does this calculation include property taxes and home insurance?
This tool calculates pure loan principal and interest (P&I). For complete escrow totals (PITI), add your local annual property taxes and homeowners insurance divided by 12.
What is an amortization schedule?
An amortization schedule is a complete chronological table detailing each installment, tracking the exact breakdown between interest paid to the lender and principal applied to your home equity.