Mortgage Calculator

A software calculator to evaluate and compare various mortgage offers.

Using an Amortization Schedule

What is an Amortization Schedule?

An Amortization Schedule is a table, which lists all mortgage payments over the loan term, along with the structure of each payment. The payment structure changes over time: the interest portion decreases while the principal portion increases. It also shows the gradual decrease of the loan balance until it reaches zero at the end of the term.

In Mortgage Calculator, the Amortization Schedule table has the following columns:

• Payment # – the payment number within the loan term;
• Date – the date on which the payment is due;
• Payment – the amount you are to pay. This is the sum of the interest and the principal;
• Interest – the interest portion of the payment;
• Principal – the principal portion of the payment;
• Balance – the loan balance, which is the amount of principal you are to repay.

Totals

At the top of the Amortization Schedule, there are three values: Total payment, Total interest and Effective interest rate:

• Total payment is the sum of total interest and the loan amount.
• Total interest is the amount of interest you pay over the whole loan term.
• Effective interest rate is the interest rate actually applied to your loan.

The effective interest rate is the nominal interest rate (the value specified in mortgage properties on the left) affected by any discount points and by the interest compounding interval. Some banks charge interest more often than once a year – in this case, the effective rate will be higher than nominal.

Subtotals for a range of payments

You may want to see the totals for a specific period – a month, several months, or several years. To do this, select adjacent rows by holding the Shift + Mouse-click or Shift+Arrow keys. The yellow bar below the selection will show the totals for the selected range of payments. Here is an example:

You can also calculate the totals for a number of separate payments. To do this, select non-adjacent rows by pressing Ctrl while Mouse-clicking on the required rows: