Home Equity Loan Amortization Table: Payments and Balance

A home equity loan amortization table shows how each scheduled payment is divided between interest and principal, along with the remaining balance. Enter the loan amount, APR, and term below to estimate the fixed monthly payment and total interest; the table itself can be built by applying the payment breakdown month by month.

Formula

The calculator uses the standard fixed-payment loan formula. First, it calculates the monthly payment using the monthly rate and number of monthly payments:

Payment = P × r ÷ [1 − (1 + r)⁻ⁿ]

• P is the amount borrowed, in dollars.
• r is the monthly interest rate, calculated as APR ÷ 1,200. APR is entered as a percent per year.
• n is the term in months, calculated as years × 12.

The payment is rounded to the nearest cent. Estimated total interest is monthly payment × n − P. Since the total uses the rounded payment, the final scheduled payment may need a small adjustment in an actual lender schedule to bring the balance to exactly zero.

Worked Example

Using the calculator’s default inputs: a $20,000 loan, 8% APR, and a five-year term:

1. Monthly rate: 8 ÷ 1,200 = 0.0066667.
2. Number of payments: 5 × 12 = 60.
3. Payment: $20,000 × 0.0066667 ÷ [1 − (1.0066667)⁻⁶⁰] = $405.53 per month, rounded to cents.
4. Total of scheduled payments: $405.53 × 60 = $24,331.80.
5. Estimated total interest: $24,331.80 − $20,000 = $4,331.80.

The headline result is a monthly payment of $405.53. Small differences from a lender’s figures can arise from payment dates, day-count methods, rounding, or loan fees.

Assumptions

• The interest rate is fixed for the entire term.
• Payments are level, monthly, and made at the end of each monthly period.
• Interest is calculated monthly using APR ÷ 12.
• Fees, taxes, insurance, mortgage insurance, escrow, and any lender-specific adjustments are not included.

How to Read an Amortization Table

A full amortization table has one row for each payment. Common columns include the payment number or date, starting balance, payment amount, interest portion, principal portion, and ending balance. For a standard monthly schedule, the calculation proceeds as follows:

1. Calculate that month’s interest as the starting balance multiplied by the monthly rate.
2. Subtract the interest from the scheduled payment to find the principal portion.
3. Subtract principal paid from the starting balance to get the ending balance.
4. Use that ending balance as the next month’s starting balance.

In the example, first-month interest is approximately $133.33 ($20,000 × 0.0066667). Of the $405.53 payment, about $272.20 reduces principal, leaving an estimated balance of $19,727.80. Calculations shown to cents can cause tiny differences if the underlying schedule retains more decimal places.

Early in a level-payment loan, the balance is larger, so the interest part of each payment is larger. As the balance falls, less interest accrues and more of the same payment goes toward principal. This does not mean the interest rate itself is rising or falling.

Using the Estimate for a Home Equity Loan

A home equity loan is generally structured as a lump sum borrowed against home equity and repaid over an agreed schedule; the exact terms depend on the loan contract. Use the amount actually being borrowed as the principal, and enter the APR and term supplied in the lender’s written figures. Do not substitute a home’s estimated value or available equity for the loan amount.

This calculator estimates the regular principal-and-interest payment for a fixed-rate, fully amortizing loan. It does not calculate how much a homeowner may borrow, determine eligibility, or establish a lender’s actual costs. If the offered loan has a variable rate, deferred payments, a balloon payment, irregular payment dates, or fees added to the balance, this simple table will not reproduce the contract schedule.

Common Errors and Limits

• Entering APR as a decimal: Enter 8 for 8%, not 0.08. The formula converts the percentage to a monthly decimal rate.
• Confusing term and payment count: A five-year term means 60 monthly payments, not five payments.
• Expecting equal principal portions: The total payment is level in this model, but the principal and interest portions change each month.
• Treating total interest as every borrowing cost: It excludes fees and other charges not entered in the calculator.
• Assuming the final payment is identical: Real servicing calculations and cent rounding may alter the last payment slightly.

The amount paid each month can also depend on the contract’s payment date and how interest accrues between dates. A lender’s payment schedule or disclosure is the source for contract-specific figures. For a comparison between two hypothetical schedules, keep the amount borrowed and rate assumptions explicit; changing more than one input makes it harder to see which assumption explains the difference.

Frequently Asked Questions

What does a home equity loan amortization table show?
It lists scheduled payments and shows how much of each payment is interest and how much reduces principal, as well as the remaining balance after each payment.

How do I calculate the interest portion of a monthly payment?
Multiply the balance at the start of the month by the monthly interest rate. For an APR entered as a percent, the monthly rate in this estimate is APR divided by 1,200.

Why does the principal portion increase over time?
With a fixed payment and rate, the outstanding balance generally declines. A smaller balance produces less monthly interest, leaving more of the payment to reduce principal.

Does this calculator include closing costs or fees?
No. It estimates principal and interest only. Check the lender’s disclosed figures for fees and any other charges that apply to the specific loan.

Can I use this table for a home equity line of credit?
Not as a complete schedule. A line of credit may allow borrowing and repayment patterns or rate changes that differ from a fixed, fully amortizing lump-sum loan.

This result is an estimate; the lender’s disclosure gives the exact figures.

Related

• Amortization Table Annual Payments Calculator
• Amortization Table Calculator and Accounting Explained
• Amortization Table: Annual Schedule Calculator

in p | Loan amount | $ | 20000 | 1 | 100000000
in apr | Interest rate (APR) | % | 8 | 0.01 | 100
in yrs | Loan term | years | 5 | 0.0833 | 50
out pmt | Monthly payment | $ | round(p * (apr / 1200) / (1 - (1 + apr / 1200) ^ -(yrs * 12)), 2) | 2
out int | Total interest | $ | pmt * yrs * 12 - p | 2