📊 View Amortization Schedule
| Year | Principal | Interest | Balance |
|---|
Understanding Interest
Mortgage: Monthly payments are calculated using the standard amortization formula where each payment covers both principal and interest. Early payments are interest-heavy, while later payments pay down more principal.
Compound Interest: Interest is calculated on the initial principal plus accumulated interest from previous periods. The more frequently interest compounds, the faster your money grows. Regular contributions amplify this effect significantly over time.
Frequently Asked Questions
What types of calculations does this tool support?
It calculates monthly mortgage payments using the amortization formula, compound interest growth with optional regular contributions, and shows a full payment or growth breakdown.
How is the monthly mortgage payment calculated?
Using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments.
What does compounding frequency mean?
It determines how often interest is added to the principal. Annual, quarterly, monthly, and daily compounding are available. More frequent compounding produces faster growth.
Can I use this for a personal loan or car loan?
Yes. Enter the loan amount, annual interest rate, and loan term to calculate any fixed-rate installment loan payment.
Does this tool send my data to a server?
No. All calculations run instantly in your browser. No financial data is transmitted anywhere.