Using the Mortgage Amortization Calculator
Early payments generally contain more interest because the outstanding balance is larger. As principal falls, more of the same payment goes toward the balance. This page summarizes the loan totals rather than displaying a row for every payment.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Amount borrowed
- 20000
- Annual interest rate (%)
- 6
- Term (months)
- 60
Example result
- Monthly payment
- 386.66
- Total payments
- 23,199.36
- Total interest
- 3,199.36
Method and assumptions
Fully amortizing loan with equal end-of-month payments, monthly interest and no fees, taxes, insurance or variable-rate changes. All amounts use the same currency.
Compare the whole borrowing commitment
When comparing loan scenarios, change one assumption at a time. First compare terms at the same rate and balance, then compare rates over the same term. This makes it easier to see why the monthly payment changes. Keep any upfront costs alongside the result so that a lower installment does not hide a more expensive agreement.
Common question
Will the payment stay the same for an adjustable-rate mortgage?
Only while the rate and repayment terms remain unchanged. This model holds the rate constant for the full period, so it cannot predict future resets.
Guide updated .