# 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