Home Loan Repayment Schedule Calculator and Guide

A home loan repayment schedule shows each regular payment and how it is divided between principal and interest, along with the balance remaining after each payment. Enter the loan amount, annual interest rate and term to estimate the monthly payment and total interest; this calculator assumes a fixed rate and monthly payments.

Formula

For a fully amortizing loan with a fixed annual percentage rate and equal monthly payments, the payment is calculated as:

Payment = P × r / (1 − (1 + r)−n)

• P is the principal, or amount borrowed, in dollars.
• r is the monthly interest rate as a decimal: APR ÷ 1,200. The APR input is expressed as a percentage per year.
• n is the total number of monthly payments: loan term in years × 12.

The monthly payment is rounded to cents. Estimated total interest is the rounded monthly payment multiplied by the number of payments, minus the original principal. This convention makes the displayed total follow the calculator’s stated payment; an actual final payment may differ because lenders can use more precise internal calculations or adjust the last installment.

Worked Example

Using the calculator’s default inputs—$20,000 borrowed, 8% APR and a 5-year term—there are 60 monthly payments. The monthly rate is 8 ÷ 1,200 = 0.0066667.

Substitute those values in the payment formula:

$20,000 × 0.0066667 ÷ [1 − (1.0066667)−60] = $405.53

The total of the rounded payments is $405.53 × 60 = $24,331.80. Subtract the $20,000 principal to estimate total interest: $4,331.80. The schedule would show how each of those payments is divided between interest and principal, and how the balance declines over time.

Assumptions

• The interest rate stays fixed for the full term.
• Payments are equal, made monthly, with the first payment one month after the loan begins.
• Interest accrues monthly at APR divided by 12.
• Fees, taxes, insurance, mortgage insurance, escrow deposits and other charges are not included.

How a Repayment Schedule Works

A repayment schedule, often called an amortization schedule, lays out the expected payment-by-payment path from the opening balance to repayment. Each row commonly lists the payment number or date, payment amount, interest charged, principal repaid and remaining balance. It is useful for understanding the loan’s structure, but it is an estimate unless it matches the lender’s contract and transaction history.

For a standard fixed-rate loan, interest for a period is calculated against the outstanding balance. Early in the schedule, that balance is large, so a larger share of the level payment goes to interest. As principal is paid down, interest charged each month generally falls and more of the same payment reduces principal. This changing split does not mean the contractual payment itself is increasing or decreasing.

A basic schedule can be calculated row by row: multiply the opening balance by the monthly rate to estimate interest; subtract that interest from the payment to find principal repaid; then subtract principal repaid from the opening balance. Repeat for each month. Small differences can appear at the end from rounding and the lender’s precise accrual method.

What Changes the Schedule

The loan amount, rate and term are the core inputs. Holding the other values constant, borrowing more increases the payment; a higher rate increases the interest portion and generally the payment; and a longer term spreads repayment across more months. A longer term can therefore produce a lower scheduled monthly principal-and-interest payment while increasing the total interest in this simplified fixed-rate comparison.

• Rate type: A variable or adjustable rate can change the payment or payoff path after a rate reset. This calculator does not model future changes.
• Payment timing: Paying at a different point in the interest period can affect accrued interest and the schedule.
• Extra principal: Additional principal payments can reduce the balance faster, but the effect depends on when they are credited and how the loan terms handle them.
• Fees and bundled costs: Closing costs, taxes, insurance and escrow amounts can affect cash due or the total housing payment without being part of this principal-and-interest calculation.

To create a more exact schedule, use the lender’s actual starting balance, rate, payment dates and rules for applying payments. The APR and interest rate are not always interchangeable in every disclosure or calculation; use the figure and method specified for the estimate you need, and confirm the contract terms with the lender.

Reading the Estimate and Common Mistakes

The monthly payment displayed here is principal and interest only. It is not necessarily the amount collected each month: a bill may include separate charges, and payment arrangements vary. Compare like with like when reviewing a lender’s payment breakdown. The calculator’s total interest is the sum implied by its rounded level payment, not a complete measure of every cost associated with borrowing.

• Enter the loan principal, not the home’s price, unless the entire price is being financed.
• Enter APR as a percentage, such as 8 for 8%, not as 0.08. The formula converts the annual percentage into a monthly decimal.
• Enter the term in years. A five-year term means 60 monthly payments in this calculator.
• Do not treat a rounded estimate as a lender’s payoff quote. Accrued interest, payment posting dates, fees and later account activity can change the exact amount.

A schedule is less reliable for loans with changing rates, irregular payments, interest-only periods, deferred payments, balloon payments or unusual compounding. It also does not show how an individual lender applies extra payments. Ask the lender or servicer for a transaction-level schedule when exact dates and balances matter.

Frequently Asked Questions

What is a home loan repayment schedule?
A repayment schedule is a timeline of payments that shows the interest and principal attributed to each installment and the outstanding balance after it is applied.

How do I calculate a monthly home loan payment?
Use the fixed-payment formula with the principal, monthly rate (APR divided by 1,200) and number of monthly payments (years multiplied by 12). This calculator performs that estimate and rounds the payment to cents.

Why does more of an early payment go to interest?
Interest is calculated on the balance outstanding for that period. The balance is usually highest near the start, so the interest share is initially larger; as principal falls, the interest share generally shrinks.

Does this estimate include taxes and insurance?
No. It estimates principal and interest only. Taxes, insurance, mortgage insurance, escrow and fees are not inputs and are not included in the results.

Will an extra payment change my schedule?
It may reduce principal faster if the lender applies it to principal, but the exact effect depends on payment timing and loan terms. The calculator does not include extra payments or predict how a lender will process them.

Why might my lender’s figures differ?
The lender may use a different starting balance, rate convention, accrual method, payment date, rounding approach or account activity. Use the lender’s disclosure and account-specific schedule for exact figures.

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

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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