Mortgage calculator
Your full monthly housing payment, the total interest, and what an extra payment each month saves.
Result
- Monthly payment
- $2,547.62
- Principal & interest
- $2,022.62
- Property tax
- $400.00
- Home insurance
- $125.00
- Loan amount
- $320,000.00
- Down payment (20%)
- $80,000.00
- Total interest
- $408,140.64
- Total of loan payments
- $728,140.64
- Paid off
- in 30 years
Amortization schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $20,694.68 | $3,576.76 | $316,423.24 |
| 2 | $20,455.16 | $3,816.28 | $312,606.96 |
| 3 | $20,199.56 | $4,071.88 | $308,535.08 |
| 4 | $19,926.87 | $4,344.57 | $304,190.51 |
| 5 | $19,635.90 | $4,635.54 | $299,554.97 |
| 6 | $19,325.44 | $4,946.00 | $294,608.97 |
| 7 | $18,994.22 | $5,277.22 | $289,331.75 |
| 8 | $18,640.79 | $5,630.65 | $283,701.10 |
| 9 | $18,263.69 | $6,007.75 | $277,693.35 |
| 10 | $17,861.33 | $6,410.11 | $271,283.24 |
| 11 | $17,432.03 | $6,839.41 | $264,443.83 |
| 12 | $16,973.98 | $7,297.46 | $257,146.37 |
How this was calculated
Loan amount
Home price − down payment
$400,000.00 − $80,000.00 = $320,000.00
Monthly interest rate
r = annual rate ÷ 12
6.5% ÷ 12 = 0.541667% = 0.00541667
Number of payments
n = years × 12
30 × 12 = 360
Principal and interest
M = P × r ÷ (1 − (1 + r)^−n)
$320,000.00 × 0.00541667 ÷ (1 − 1.00541667^−360) = $2,022.62
Monthly payment
P&I + tax ÷ 12 + insurance ÷ 12 + PMI + HOA
$2,022.62 + $400.00 + $125.00 + $0.00 + $0.00 = $2,547.62
Total interest
Sum of each month's interest (balance × r, rounded to the cent)
360 payments → $408,140.64
What this calculation assumes
- A fixed interest rate for the whole term. Payments are made monthly, at the end of each month, starting next month.
- Interest each month is the remaining balance × (annual rate ÷ 12). The rate entered is the nominal annual rate, not the APR including fees.
- PMI is charged only when the down payment is under 20%, as a yearly percentage of the original loan, and stops once the balance reaches 80% of the home price.
- Property tax, insurance and HOA stay the same every year. In practice they usually rise.
- Extra payments go straight to principal, every month, from the first payment.
- Closing costs, points and lender fees are not included.
Estimates for information only. They are not financial advice, a loan offer or a guarantee of any return, rate or approval. Lenders and providers calculate with their own terms; check yours before you decide.
What goes into a monthly mortgage payment
Lenders quote principal and interest, but the amount that leaves your account each month is usually larger. Most US loans collect property tax and homeowners insurance into an escrow account with each payment, add private mortgage insurance (PMI) when the down payment is under 20%, and some homes carry a homeowners association (HOA) fee. Together these are often called PITI: principal, interest, taxes and insurance.
This calculator adds every part and shows each one on its own line, so you can see how much of the payment is the loan and how much is the house.
The formula
M = P × r ÷ (1 − (1 + r)^−n)
P is the loan amount (price minus down payment), r is the monthly rate (the annual rate divided by 12) and n is the number of monthly payments (years × 12). With a 0% rate the payment is simply P ÷ n.
Example: a $360,000 loan at 6.5% for 30 years has r = 0.065 ÷ 12 = 0.0054167 and n = 360, giving a principal and interest payment of $2,275.44. Add $400 of property tax, $125 of insurance and $150 of PMI and the monthly payment is $2,950.44.
How extra payments shorten the loan
Every extra dollar paid toward principal stops earning interest for the lender for the rest of the loan. Early in a 30-year mortgage most of each payment is interest, so a modest extra payment each month can take years off the term. Open Extra payments and the result shows the interest saved and the time saved side by side.
Use Pin & compare to keep one scenario on the tape while you try another: 30 years against 15, or 10% down against 20%.
Questions people ask
When does PMI stop?
On a conventional US loan you can ask the lender to cancel PMI once the balance reaches 80% of the home's original value, and it ends automatically at 78%. This calculator stops PMI in the month the balance first reaches 80% of the price you entered.
Is the interest rate the same as the APR?
No. The interest rate sets the payment. The APR also spreads lender fees and points over the loan, so it is usually a little higher. Enter the interest rate to get the payment.
How much house can I afford?
A common guideline is that housing costs stay under about 28% of gross monthly income and all debt payments under about 36%, but lenders use their own limits. Use the monthly payment here against your own budget.
Why is so much of the early payment interest?
Interest each month is the balance times the monthly rate. The balance is largest at the start, so the interest part is largest then, and the principal part grows every month as the balance falls.