Ever wondered how your mortgage balance actually reduces with each payment? Or how much of your monthly payment is going toward interest vs capital?
Our Mortgage Amortization Calculator breaks it all down for you, year by year.
Whether you’re just starting out with a mortgage, reviewing your finances, or planning to make overpayments, this tool gives you a clear picture of how your loan is paid off over time.
See exactly how your mortgage balance decreases over time with detailed payment schedules
This calculator shows how your mortgage balance decreases over time. Early payments are mostly interest, while later payments pay down more principal.
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Balance: £250,000
Interest rate: 4.5%
Term: 25 years
Monthly payment: ~£1,390
In year 1, you pay:
~£9,900 in interest
~£6,800 in capital
By year 10, your payments are more balanced. By year 20, most of your payment goes to capital.
Want to accelerate that? Add a monthly overpayment of £100, and knock 2 years off your mortgage while saving over £10,000 in interest.
Dan and Priya want to borrow an extra £20,000 for home improvements. The calculator shows how that affects their monthly payment and total interest, so they can budget with confidence.
Ellie is looking at two new mortgage deals — one with a fee, one without. Using the calculator, she sees that even with a £999 fee, the lower interest rate saves her money within 18 months.
A: Interest is charged on the outstanding balance, which is highest at the start. That’s why your first few years are interest-heavy.
A: No interest-only mortgages don’t reduce the capital. This calculator is for repayment mortgages. Ask us if you want to compare the two.
A: Overpayments reduce your balance sooner, which reduces interest faster, and brings your mortgage term down. The calculator shows exactly how much.
A: Use the calculator to run each deal side-by-side — same balance, different rates or terms — and see which one costs less over time.
A: Yes — amortization is just a fancy word for repayment breakdown. You’ll see a year-by-year or month-by-month view of how your mortgage decreases.
Use our free Mortgage Amortization Calculator now to understand where your money’s going — and how to pay off your loan faster.
More clarity. Better planning. Smarter payments.
