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Mortgage Amortization Calculators

This page is a guide to mortgage amortization calculators. The intention here is to explain what mortgage amortization calculators are and how and why they are useful.

Summarizing Mortgage Amortization Calculators

A mortgage amortization calculator can help you to see the regular repayments you have to make against a mortgage loan based upon the mortgage amortization process.

Mortgage amortization calculators consider varying amounts of interest as well as the mortgage principal into each and every repayment, even though the total amount of each mortgage repayment is always the same.

Principal Benefits of  Mortgage Amortization Calculators

A mortgage amortization calculator can show you the total amount that goes towards the interest and the amount that actually goes towards amortizing the principal in each monthly (or bi-weekly) payment. A mortgage amortization schedule is a chart highlighting these amounts throughout the term of the mortgage loan in date order.

Calculating Amortization: How Mortgage Amortization Calculators Calculate?

Mortgage amortization calculators use three main factors to calculate how your monthly or bi-weekly mortgage payments amortize your mortgage principal.

  • The mortgage loan amount
  • The rate of interest
  • The number of amortization periods (i.e. the term of your mortgage agreement in years)

The basic formula used to calculate the mortgage amortization schedule, ergo the monthly payments is:

Balance of Mortgage Loan Principal [(Annual Interest Rate (1 + Annual Interest Rate), ((1 + Annual Interest Rate) n – 1))

This formula may reasonably seem to be quite confusing to non-mathematicians, so that’s why a mortgage amortization calculator or mortgage amortization schedule can be so useful. The formula above can provide the basis for mortgage amortization calculations: although variances can be found according to whether your mortgage rate is fixed or adjustable, mortgage amortization calculators will likely use this rule as a base.

FinanceGecko.com Mortgage Amortization Amortization Calulators

In the future we intend to publish our own online mortgage amortization calculators for you to use free of charge. We also aim to publish free mortgage amortization excel schedules for you to download and use as and when you like!