Enter your loan information to create a detailed amortization schedule by month or year.
What is an amortization schedule?
The process of repaying a loan with interest to the lender is described in an amortization schedule. Each payment is broken down in terms of how much is applied to the principal and how much is interest. The distribution between principal and interest varies over time so the amortization schedule specifically illustrates the changes.
Understanding an amortization schedule
The easiest way to understand an amortization schedule is through an example using a mortgage. Let's say you want to purchase a $100,000 home so the bank agrees to provide with a loan at a fixed interest rate of 5% for 15 years. To better understand how you will pay off the loan, you create an amortization schedule.
Since it is a 15 year loan, the amortization schedule shows you will have to make 180 payments (15 * 12 = 180). If there was no interest rate, determining your monthly payment be simple: $100,000 divided by 180 payments = $555.56 per month. But with a 5% interest rate, the monthly payment turns out to be $790.79 (determining the monthly payment requires a rather complex math formula).
Next you see that a portion of each payment is interest while the rest goes towards the loan's remaining balance. The distribution of these two amounts in each payment varies with the interest portion declining with each payment. Understanding how the interest is determined for each payment is not a tricky as it seems.
The 5% interest rate is an annual interest rate. To determine the monthly interest rate, it must be divided by 12. Then the monthly interest rate is multiplied by the remaining balance to determine how much interest needs to be paid. Here is the process for determining the first month's interest and portion that goes toward the loan's remaining balance.
Step 1. 5% annual interest rate / 12 = 0.42% monthly interest rate
Step 2. 0.42% * $100,000 = $416.67
Step 3. $790.79 - $416.67 = $374.13
This process is repeated for each payment until the loan is paid back in full. Since the remaining balance of the loan is decreasing, the amount of interest declines as well allowing the amount to pay off the loan to rise each month.
At the end of this loan, you will have not only paid back the $100,000, but also paid $42,342.85 in interest. To see this for yourself, return to the top of this page and press the Create button to see a complete amortization schedule.
If you’re ready to buy a home, you might wonder how to budget for your target home cost. Here’s a breakdown of what you might face monthly, in interest and over the life of a $150,000 mortgage.
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Monthly payments on a $150,000 mortgage
At a 4% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $716.12 a month, while a 15-year might cost $1,109.53 a month.
See your monthly payments by interest rate.
3.0% | 15 years | $1,035.87 |
3.0% | 30 years | $632.41 |
3.25% | 15 years | $1,054.00 |
3.25% | 30 years | $652.81 |
3.5% | 15 years | $1,072.32 |
3.5% | 30 years | $673.57 |
3.75% | 15 years | $1,090.83 |
3.75% | 30 years | $694.67 |
4.0% | 15 years | $1,109.53 |
4.0% | 30 years | $716.12 |
4.25% | 15 years | $1,128.42 |
4.25% | 30 years | $737.91 |
4.5% | 15 years | $1,147.49 |
4.5% | 30 years | $760.03 |
4.75% | 15 years | $1,166.75 |
4.75% | 30 years | $782.47 |
5.0% | 15 years | $1,186.19 |
5.0% | 30 years | $805.23 |
5.25% | 15 years | $1,205.82 |
5.25% | 30 years | $828.31 |
5.5% | 15 years | $1,225.63 |
5.5% | 30 years | $851.68 |
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Your total interest on a $150,000 mortgage
On a 30-year mortgage with a 4% fixed interest rate, you’ll pay $107,805.27 in interest over the life of your loan. That’s about two-thirds of what you borrowed in interest.
If you instead opt for a 15-year mortgage, you’ll pay $49,715.96 in interest over the life of your loan — or about half of the interest you’d pay on a 30-year mortgage.
Amortization schedule
When you take out a mortgage, you agree to pay the principal and interest over the life of the loan. Your interest rate is applied to your balance, and as you pay down your balance, the amount you pay in interest changes.
Amortization means that at the beginning of your loan, a big percentage of your payment is applied to interest. With each subsequent payment, you pay more toward your balance.
Estimate your monthly loan repayments on a $150,000 mortgage at a 4% fixed interest with our amortization schedule over 15 and 30 years.
- 30-year loan
- 15-year loan
1 | $150,000.00 | $716.12 | $5,951.92 | $2,641.52 | $8,593.44 | $147,358.48 |
2 | $147,358.48 | $716.12 | $5,844.30 | $2,749.14 | $8,593.44 | $144,609.34 |
3 | $144,609.34 | $716.12 | $5,732.28 | $2,861.16 | $8,593.44 | $141,748.18 |
4 | $141,748.18 | $716.12 | $5,615.73 | $2,977.71 | $8,593.44 | $138,770.47 |
5 | $138,770.47 | $716.12 | $5,494.40 | $3,099.04 | $8,593.44 | $135,671.43 |
6 | $135,671.43 | $716.12 | $5,368.17 | $3,225.27 | $8,593.44 | $132,446.16 |
7 | $132,446.16 | $716.12 | $5,236.75 | $3,356.69 | $8,593.44 | $129,089.47 |
8 | $129,089.47 | $716.12 | $5,100.00 | $3,493.44 | $8,593.44 | $125,596.03 |
9 | $125,596.03 | $716.12 | $4,957.66 | $3,635.78 | $8,593.44 | $121,960.25 |
10 | $121,960.25 | $716.12 | $4,809.54 | $3,783.90 | $8,593.44 | $118,176.35 |
11 | $118,176.35 | $716.12 | $4,655.39 | $3,938.05 | $8,593.44 | $114,238.30 |
12 | $114,238.30 | $716.12 | $4,494.94 | $4,098.50 | $8,593.44 | $110,139.80 |
13 | $110,139.80 | $716.12 | $4,327.95 | $4,265.49 | $8,593.44 | $105,874.31 |
14 | $105,874.31 | $716.12 | $4,154.16 | $4,439.28 | $8,593.44 | $101,435.03 |
15 | $101,435.03 | $716.12 | $3,973.30 | $4,620.14 | $8,593.44 | $96,814.89 |
16 | $96,814.89 | $716.12 | $3,785.07 | $4,808.37 | $8,593.44 | $92,006.52 |
17 | $92,006.52 | $716.12 | $3,589.16 | $5,004.28 | $8,593.44 | $87,002.24 |
18 | $87,002.24 | $716.12 | $3,385.29 | $5,208.15 | $8,593.44 | $81,794.09 |
19 | $81,794.09 | $716.12 | $3,173.11 | $5,420.33 | $8,593.44 | $76,373.76 |
20 | $76,373.76 | $716.12 | $2,952.28 | $5,641.16 | $8,593.44 | $70,732.60 |
21 | $70,732.60 | $716.12 | $2,722.46 | $5,870.98 | $8,593.44 | $64,861.62 |
22 | $64,861.62 | $716.12 | $2,483.27 | $6,110.17 | $8,593.44 | $58,751.45 |
23 | $58,751.45 | $716.12 | $2,234.32 | $6,359.12 | $8,593.44 | $52,392.33 |
24 | $52,392.33 | $716.12 | $1,975.25 | $6,618.19 | $8,593.44 | $45,774.14 |
25 | $45,774.14 | $716.12 | $1,705.62 | $6,887.82 | $8,593.44 | $38,886.32 |
26 | $38,886.32 | $716.12 | $1,424.98 | $7,168.46 | $8,593.44 | $31,717.86 |
27 | $31,717.86 | $716.12 | $1,132.93 | $7,460.51 | $8,593.44 | $24,257.35 |
28 | $24,257.35 | $716.12 | $828.98 | $7,764.46 | $8,593.44 | $16,492.89 |
29 | $16,492.89 | $716.12 | $512.63 | $8,080.81 | $8,593.44 | $8,412.08 |
30 | $8,412.08 | $716.12 | $183.43 | $8,412.08 | $8,593.51 | $0.00 |
1 | $150,000.00 | $1,109.53 | $5,864.38 | $7,449.98 | $13,314.36 | $142,550.02 |
2 | $142,550.02 | $1,109.53 | $5,560.88 | $7,753.48 | $13,314.36 | $134,796.54 |
3 | $134,796.54 | $1,109.53 | $5,244.98 | $8,069.38 | $13,314.36 | $126,727.16 |
4 | $126,727.16 | $1,109.53 | $4,916.24 | $8,398.12 | $13,314.36 | $118,329.04 |
5 | $118,329.04 | $1,109.53 | $4,574.09 | $8,740.27 | $13,314.36 | $109,588.77 |
6 | $109,588.77 | $1,109.53 | $4,218.01 | $9,096.35 | $13,314.36 | $100,492.42 |
7 | $100,492.42 | $1,109.53 | $3,847.39 | $9,466.97 | $13,314.36 | $91,025.45 |
8 | $91,025.45 | $1,109.53 | $3,461.69 | $9,852.67 | $13,314.36 | $81,172.78 |
9 | $81,172.78 | $1,109.53 | $3,060.28 | $10,254.08 | $13,314.36 | $70,918.70 |
10 | $70,918.70 | $1,109.53 | $2,642.54 | $10,671.82 | $13,314.36 | $60,246.88 |
11 | $60,246.88 | $1,109.53 | $2,207.73 | $11,106.63 | $13,314.36 | $49,140.25 |
12 | $49,140.25 | $1,109.53 | $1,755.23 | $11,559.13 | $13,314.36 | $37,581.12 |
13 | $37,581.12 | $1,109.53 | $1,284.29 | $12,030.07 | $13,314.36 | $25,551.05 |
14 | $25,551.05 | $1,109.53 | $794.16 | $12,520.20 | $13,314.36 | $13,030.85 |
15 | $13,030.85 | $1,109.53 | $284.07 | $13,030.85 | $13,314.92 | $0.00 |
Jing Jun Ma is a tech and data expert with more than a decade of experience in digital marketing and programming. He wrangles data to make it useful for consumers facing a decision.
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