Mortgage Amortization & Interest Analyzer
Before committing to a home loan or large debt, understand the true long-term financial cost. This calculator generates a full amortization schedule, showing exactly how much of your monthly payment goes toward interest versus principal over the entire loan term.
Loan Details
Loan Summary
Full Amortization Schedule
| Month | Beginning Balance | Monthly Payment | Interest Paid | Principal Paid | Ending Balance |
|---|
Enter loan details above and click 'Analyze Mortgage Cost' to generate the full schedule.
The Power of Amortization: Why Interest is Front-Loaded
When you first take out a long-term loan, your bank charges interest on the entire principal balance. This is why, in the early years of your mortgage, a disproportionate amount of your monthly payment goes toward interest, while only a small amount reduces the principal balance.
Key Takeaways from the Amortization Schedule:
- **Tax Deductions:** The large interest payments in the early years are often tax-deductible, which is an important financial benefit of homeownership.
- **The Cost of Time:** Notice how extending the loan term (e.g., from 15 to 30 years) dramatically increases the **Total Interest Paid** (highlighted in red). A longer term means the bank collects interest on a larger balance for a longer period.
- **Accelerating Payoff:** Every extra payment you make toward the principal balance reduces the base on which the next month's interest is calculated. Reviewing the schedule can inspire strategies for early payoff.
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