Mortgage Amortization Calculator

What is mortgage amortization calculator?

An amortization calculator is used to settle on the broken up payment due to a loan based on the amortization process.

This calculator is generally used to adjust the loan amount until the monthly payments fit into the budget and also can vary the interest rate to check what a better rate makes in the kind of home or car loan one can afford to take. It also calculates the exact dollar amount which goes to the interest and the principal out of each individual payment.

Formula:

This calculation arrives at the periodic payment amount assuming that the first payment depends on the full payment period in to the loan.

The annuity formula is:

A  = P (i(1+i)^n/(1+i)^n-1)
Where
A = periodic payment
P = amount of the principal subtracting the down payments
I = periodic interest rate
N = total number of payments
N means for a 30 year loan N = 30 *12 = 360

For the interest case if the interest is specified as x% APR then dividing by 12 is the appropriate means of determining the interest rate monthly. Or else APR should be calculated then that rate is to be divided by 12.

Compounded interest rates:

When the compounding period is same as the payment period then interest I can be calculated using the formula

I = (1+iannual / c)^c/p -1
Where c is the number of periods per year and p is the number of payments made per year.

Example:

If a person X takes an amortization loan amount of $300,000 at the rate of  8.5% interest for 30 years then the loan amount which he has to pay monthly is $2306.76

The monthly average interest is $530426.56
Total interest is $1473.41

For the above example, mortgage amortization payment schedule


Sl. No.

Month

Principal paid

Interest paid

Loan balance

1

April 2010

181.74

2125

299818.26

2

May 2010

183.03

2123.71

299635.23

3

June 2010

184.32

2122.42

299450.91

4

July 2010

185.63

2121.11

299265.28

5

August 2010

186.94

2119.8

299078.33

6

September 2010

188.27

2118.47

298890.06

7

October 2010

189.6

2117.14

298700.46

8

November 2010

190.95

2115.79

298509.52

9

December 2010

192.3

2114.44

298317.22

10

January 2011

193.66

2113.08

298123.56

11

February 2011

195.03

2111.71

297928.53

12

March 2011

196.41

2110.33

297732.11

13

April 2011

197.8

2108.94

297534.31

14

May 2011

199.21

2107.53

297335.1

15

June 2011

200.62

2106.12

297134.49

16

July 2011

202.04

2104.7

296932.45

17

August 2011

203.47

2103.27

296728.98

18

September 2011

204.91

2101.83

296524.07

19

October 2011

206.36

2100.38

296317.71

20

November 2011

207.82

2098.92

296109.88

21

December 2011

209.3

2097.45

295900.59

22

January 2012

210.78

2095.96

295689.81

23

February 2012

212.27

2094.47

295477.54

24

March 2012

213.77

2092.97

295263.76

25

April 2012

215.29

2091.45

295048.48

26

May 2012

216.81

2089.93

294831.66

27

June 2012

218.35

2088.39

294613.31

28

July 2012

 219.9

2086.84

294393.92

29

August 2012

221.45

2085.29

294171.96

30

September 2012

223.02

2083.72

293948.94

31

October 2012

224.6

2082.14

293724.34

32

November 2012

226.19

2080.55

293498.14

33

December 2012

227.8

2078.95

293270.35

34

January 2013

229.41

2077.33

293040.94

35

February 2013

231.03

2075.71

292809.91

36

March 2013

232.67

2074.07

292577.24

37

April 2013

234.32

2072.42

292342.92

38

May 2013

235.98

2070.76

292106.94

39

June 2013

237.65

2069.09

291869.29

40

July 2013

239.33

2067.41

291629.96

41

August 2013

241.03

2065.71

291388.93

42

September 2013

242.74

2064

291146.11

43

October 2013

244.45

2062.29

290901.74

44

November 2013

246.19

2060.55

290655.55

45

December 2013

247.93

2058.81

290407.62

46

January 2014

249.69

2057.05

290157.94

47

February 2014

251.46

2055.29

289906.48

48

March 2014

256.84

2053.5

289141.38

49

April 2014

255.03

2051.71

289398.21

50

May 2014

256.84

2049.9

289141.38

51

June 2014

258.66

2048.08

288882.72

52

July 2014

260.49

2046.25

288622.23

53

August 2014

262.33

2044.41

288359.9

54

September 2014

264.19

2042.55

288095.71

55

October 2014

266.06

2040.68

287829.65

56

November 2014

267.95

2038.79

287561.7

57

December 2014

269.85

2036.9

287291.86

58

January 2015

271.76

2034.98

287020.1

59

February 2015

273.68

2033.06

286746.62

60

March 2015

275.62

2031.12

286470.8

61

April 2015

277.57

2029.17

286193.23

62

May 2015

279.54

2027.2

285913.69

63

June 2015

281.52

2025.22

285632.17

64

July 2015

283.51

2023.23

285348.66

65

August 2015

285.52

2021.22

285063.14

66

September 2015

287.54

2019.2

248775.49

67

October 2015

289.58

2017.16

284486.01

68

November 2015

291.63

2015.11

284194.38

69

December 2015

293.7

2013.04

283900.68

70

January 2016

295.78

2010.96

283604.91

71

February 2016

297.87

2008.87

283307.03

72

March 2016

299.98

2006.76

283007.05

73

April 2016

302.11

2004.63

282704.94

74

May 2016

304.25

2002.49

282400.7

75

June 2016

306.4

2000.3

282094.3

76

July 2016

308.57

1998.17

281785.72

77

August 2016

310.76

1995.76

281474.96

78

September 2016

312.96

1993.78

281162.01

79

October 2016

315.18

1991.56

280846.83

80

November 2016

317.41

1989.33

280529.42