How it works
How this tool works.
A mortgage payment looks like one flat number, but underneath it the mix shifts every month. Early on, most of the payment is interest on a large balance; as the balance shrinks, more of the same payment goes to principal. Seeing that shift laid out by year is the fastest way to understand why the first years of a loan build equity slowly and the last years build it fast.
This calculator takes the loan amount, interest rate, and term, computes the fixed monthly principal & interest payment, and simulates the loan month by month. It rolls the results into a compact year-by-year schedule — principal paid, interest paid, and the remaining balance — so you can see exactly where any year of the loan stands. It is arithmetic on your inputs, not a quote or an offer.
Enter the loan amount, then set the interest rate and term with the sliders.
The tool computes the fixed monthly principal & interest payment from the standard amortization formula.
It then walks the loan month by month — interest accrues on the remaining balance, the rest of the payment reduces principal — and rolls each year into one row.
Read the table to see principal paid, interest paid, and the balance left at the end of every year of the term.