1. What is a Mortgage Payment Table?

Definition: This calculator shows the amortization schedule for a mortgage, breaking down each payment into interest and principal components.

Purpose: It helps borrowers understand how their payments are applied and how the loan balance decreases over time.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( I_k \) — Interest portion of payment k
• \( P_k \) — Principal portion of payment k
• \( B_k \) — Remaining balance after payment k
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( M \) — Fixed monthly payment amount

3. Importance of Amortization

Details: Understanding amortization helps borrowers see how much interest they'll pay over the loan term and how extra payments can reduce total interest.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate, and loan term in years. The calculator will show the monthly payment and full amortization schedule.

5. Frequently Asked Questions (FAQ)

Q1: Why does early interest seem higher?
A: Early payments have higher interest because the balance is larger; more of each payment goes toward principal as the balance decreases.

Q2: How can I pay less interest?
A: Make extra principal payments or choose a shorter loan term to reduce total interest paid.

Q3: What's the difference between rate and APR?
A: The rate is the interest charged, while APR includes fees and other loan costs for a true cost comparison.

Q4: Can I see the effect of extra payments?
A: This version shows the standard schedule. For extra payments, use our Advanced Mortgage Calculator.

Q5: Why does my last payment sometimes differ?
A: Final payments may adjust slightly due to rounding in the amortization calculations.