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Mortgage Calculator

Enter a home price, down payment, loan term, and interest rate to estimate your monthly payment — and optionally add property tax, insurance, PMI, and HOA fees for the full picture.

20.0% of home price

Monthly payment (Principal & Interest)

$2,022.62

Loan amount

$320,000.00

Total interest (life of loan)

$408,142.36

$320,000.00 principal vs. $408,142.36 interest over the life of the loan

Show year-by-year amortization
YearPrincipalInterestBalance
1$3,577$20,695$316,423
2$3,816$20,455$312,607
3$4,072$20,200$308,535
4$4,345$19,927$304,191
5$4,636$19,636$299,555
6$4,946$19,325$294,609
7$5,277$18,994$289,332
8$5,631$18,641$283,701
9$6,008$18,264$277,694
10$6,410$17,861$271,284
11$6,839$17,432$264,444
12$7,297$16,974$257,147
13$7,786$16,485$249,361
14$8,308$15,964$241,053
15$8,864$15,407$232,189
16$9,458$14,814$222,732
17$10,091$14,180$212,641
18$10,767$13,505$201,874
19$11,488$12,784$190,386
20$12,257$12,014$178,129
21$13,078$11,193$165,051
22$13,954$10,317$151,097
23$14,888$9,383$136,208
24$15,886$8,386$120,323
25$16,949$7,322$103,373
26$18,085$6,187$85,289
27$19,296$4,976$65,993
28$20,588$3,683$45,405
29$21,967$2,305$23,438
30$23,438$833$0

How a mortgage payment is calculated

A fixed-rate mortgage charges the same interest rate for the whole loan term, with a level monthly payment split between principal (paying down what you borrowed) and interest (the lender's charge for lending it). Early in the loan, most of each payment goes toward interest; later on, more goes toward principal — even though the total payment amount doesn't change.

The formula, in plain language

M = P × [r(1 + r)^n] / [(1 + r)^n − 1]

  • M — the monthly principal & interest payment
  • P — the loan amount (home price minus down payment)
  • r — the monthly interest rate (annual rate ÷ 12, as a decimal)
  • n — the total number of monthly payments (loan term in years × 12)

Worked example

Suppose you buy a $400,000 home with $80,000 down (20%), a 30-year term, at a 6.5% annual rate:

  • Loan amount: $400,000 − $80,000 = $320,000
  • Monthly interest rate: 6.5% ÷ 12 = 0.5417%
  • Number of payments: 30 × 12 = 360
  • Monthly principal & interest: $2,022.62
  • Total paid over 30 years: $728,142.36
  • Total interest paid: $408,142.36 — more than the loan amount itself

Try these exact numbers in the calculator above to see the full amortization schedule.

Frequently asked questions

What's included in a mortgage payment?+

The core payment is principal & interest (P&I) — what actually pays down the loan and compensates the lender. Many homeowners also pay property tax, homeowners insurance, and sometimes PMI or an HOA fee as part of the same monthly bill, often bundled together (commonly called PITI: Principal, Interest, Taxes, Insurance). This calculator lets you add those as optional extras to see the fuller monthly cost.

What is PMI and when does it go away?+

Private Mortgage Insurance (PMI) protects the lender, not you, and is typically required when your down payment is below 20% of the home's price. It's usually a monthly amount added to your payment, and lenders are generally required to let you request its removal once you reach 20% equity, and to remove it automatically around 22% equity. Rates vary by lender and credit profile, so this calculator asks you to enter your own PMI estimate rather than guessing one for you.

15-year vs. 30-year: what's the real difference?+

A shorter term means a higher monthly principal & interest payment but a much lower total interest cost, since you're borrowing the lender's money for less time. A 30-year loan spreads payments out and lowers the monthly amount, but you'll pay substantially more in total interest over the life of the loan. Try switching the loan term in the calculator above to see the difference for your own numbers.

Does this calculator account for closing costs or extra payments?+

No — it models a standard fixed-rate loan with level monthly payments only. It doesn't include one-time closing costs, origination fees, or the effect of extra principal payments, all of which can meaningfully change your real-world total. Treat the results as a payment and interest estimate, not a lender's official quote.

Is the interest rate fixed for the whole loan?+

This calculator assumes a fixed-rate mortgage — the same interest rate for every payment over the full term. It does not model adjustable-rate mortgages (ARMs), where the rate can change after an initial period.

Not financial advice. This calculator is provided for general educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Results are estimates based on the assumptions you enter and may not reflect actual returns, fees, or taxes. Consult a qualified financial professional before making decisions based on this information.