See how a monthly mortgage payment splits into principal and interest year by year, plus the equity percentage built at each point along the schedule.
How to Use the Mortgage Amortization Calculator
Home price, down payment (as a dollar amount), rate, and term feed the schedule below — the loan amount is simply price minus down payment, and every row of the year-by-year table updates the moment any of the four change.
This isn't just another amortization table. Track a plain loan balance over time and you get principal, interest, and what's left owed — useful, but it doesn't answer the question a homeowner actually cares about: how much of the house do I actually own right now? This calculator adds that fifth column.
Equity % = (Home Price − Remaining Balance) ÷ Home Price × 100
Because the formula holds Home Price fixed at whatever you entered, it's tracking equity gained purely from paying down principal — no appreciation, no market movement. Real homes tend to gain value over time too, which would push actual equity higher than what's shown here; this table isolates the paydown component on its own.
The schedule highlights the first year equity crosses 20%, and that number isn't arbitrary. On a conventional loan carrying private mortgage insurance, 20% equity is generally the point a borrower can request PMI be removed — one of the more concrete financial milestones buried in a 30-year amortization schedule. This calculator flags when you'd reach it through principal paydown alone; it doesn't calculate a PMI premium itself, since conventional PMI rates depend on credit score and loan program in ways this table doesn't model.
A bigger down payment moves that milestone dramatically. Someone putting 20% down starts at that equity level on day one; someone putting 5% down might not cross it until year eight or nine on a standard fixed-rate schedule, purely from the compounding effect of early payments being interest-heavy.