Start Comparing

# Principal and Interest Calculator (Amortization)

Updated on 30 June, 2022

### How much of your mortgage is going toprincipal and interest?

The InfoChoice Principal and Interest Calculator makes it easy to see how much of your mortgage repayment is going towards principal and interest every month.

Just enter the loan amount, term length, interest rate and any repayments to get a complete breakdown of where your mortgage payments are going. The principal and interest rates calculator also shows you how much principal versus interest has been paid to date, so you can see how much equity you've built up.

As you can see, most of your home loan repayment goes towards interest rates in the early years of your home loan, as the principal balance is paid off over time.

#### Can't see the calculator?

JavaScript may be disabled on your browser. Please enable JavaScript to view the calculator.

## Principal and Interest Calculator FAQs

#### How is principal and interest calculated?

Home loan repayments, like credit card debt repayments, repay both your principal loan amount and the interest that is added onto the principal amount each month, unless you have chosen an interest-only home loan. Interest-only home loan repayments do not repay any of the principal loan amount. If you choose a principal and interest home loan, your repayments will pay down the the prinicpal loan amount each month, plus the interest, so your repayments will be higher than an interest-only mortgage.

#### How is principal and interest split in monthly loan repayments?

How much of your home loan repayments are repaying the prinicpal loan amount and how much of your loan repayments are repaying the interest charged. These amounts will change over time as your home loan is repaid.

## Important Information to Note

#### Principal and Interest Calculator Assumptions

The Principal and Interest Calculator provides a schedule of your monthly repayments and shows you what portion goes towards interest and what portion goes toward paying off the principal amount borrowed.

Once finished you can keep a permanent record by printing each page of the schedule. You will also be able to save the whole schedule to your computer by clicking on the save icon.

## Length of Month

All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month.

## Number of Weeks & Fortnights in a Year

One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

## Rounding of Amount of Each Repayment

In practice, repayments are rounded to at least the nearer cent. Note that the final repayment after the increase in repayment amount will be a partial repayment as required to reduce the loan balance to zero.

## Interest rate calculator for loan repayment

Monthly repayment is calculated in respect of the rounded loan amount and using interest rate entered, not including any interest rate buffer.

#### Disclaimer

The results from this Principal and Interest Calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change. This principal and interest rate calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. You should consider obtaining advice from a financial services licensee before making any financial decisions.

#### Home Loans

Mortgage Calculator : Calculate what your mortgage repayments will be and how they would fit into your budget by using our Mortgage Calculator

Stamp Duty Calculator : Calculate what your upfront or transfer costs are when buying property by using our Stamp Duty Calculator

Borrowing Power Calculator : Calculate the maximum loan amount you can borrow based on your income and expenses by using our How much can I borrow calculator

Home Loan Comparison Calculator : Calculate your home loan repayment options based on fixed vs variable home loan rates by using our Home Loan Comparison Calculator

Mortgage Extra Repayment Calculator : Calculate how quickly extra repayments can help pay off your home loan by using our Mortgage Extra Repayment Calculator

Lump Sum Repayment Calculator : Calculate how much lump sum payments on your mortgage can help you save by using our Lump Sum Repayment Calculator

Refinance Calculator : Calculate how much switching your home loan can help you save by using our Refinance Calculator

Split Loan Calculator : Calculate the benefits of having a split loan and experiment different split loan scenarios by using our Split Loan Calculator

Principal and Interest Calculator : Calculate the benefits of making principal payments off your mortgage by using our Principal and Interest Calculator

How Much Can I Borrow Calculator : Calculate your affordability based on the property location by using our How Much Can I Borrow Calculator

#### Savings & Term Deposits

Savings Calculator : Calculate how much interest your savings account can help you earn by using our Savings Calculator

Term Deposit Calculator : Calculate how much interest your term deposit can help you earn by using our Term Deposit Calculator

Income Tax Calculator : Calculate how much income tax you would potentially pay based on your current income and how it compares to the previous year by using our Income Tax Calculator

#### Credit Cards & Personal Loans

Credit Card Calculator : Calculate how  long it will take to pay off your credit card by using our Credit Card Calculator

Personal Loan Repayment Calculator : Calculate how much your repayments would be based on the personal loan amount you're looking to borrow by using our Personal Loan Repayment Calculator

Car Loan Calculator : Calculate how much your  car loan repayments would be based on the amount you're borrowing for your car by using our Car Loan Calculator