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 |
