Amortization is the process of paying off a debt with periodic payments or installments. Mortgages are an example of an amortizing loan. Usually, you pay a certain amount each month, with a percentage going to the principal and interest. As you pay down your loan and the balance shrinks, more of your payments go to reducing the principal rather than toward interest. This amortization calculator will show you how much of your monthly payment will go toward the principal and how much will go toward the interest.
A mortgage amortization calculator shows how much of your monthly mortgage payments goes toward principal (the money you borrowed), and how much goes toward interest.
Amortization is paying off a debt over time in equal installments. Part of each payment goes toward the loan principal, and part goes toward interest.
With a mortgage, the amount going toward principal starts out small, and gradually grows larger month by month. Meanwhile, the amount going toward interest declines month by month.
The amortization schedule calculator shows:
This means you can use the mortgage amortization calculator to:
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