Mortgage Calculator
Work out what a home loan will cost each month. Enter the price, down payment, interest rate and term, add property tax, insurance and HOA dues if you know them, and see the payment breakdown, total interest and a year-by-year amortization schedule.
Result
- Principal & interest
- $2,022.62
- Property tax
- $300.00
- Home insurance
- $100.00
- Loan amount
- $320,000.00
- Down payment
- $80,000.00 (20%)
- Total interest over the term
- $408,142.36
- Total of all P&I payments
- $728,142.36
- Total tax, insurance & HOA over the term
- $144,000.00
- Payoff date
- November 3, 2056
| Year | Principal paid | Interest paid | Remaining balance |
|---|---|---|---|
| 1 | $3,576.72 | $20,694.69 | $316,423.28 |
| 2 | $3,816.26 | $20,455.15 | $312,607.02 |
| 3 | $4,071.84 | $20,199.57 | $308,535.17 |
| 4 | $4,344.54 | $19,926.87 | $304,190.63 |
| 5 | $4,635.50 | $19,635.91 | $299,555.13 |
| 6 | $4,945.95 | $19,325.46 | $294,609.18 |
| 7 | $5,277.19 | $18,994.22 | $289,331.98 |
| 8 | $5,630.62 | $18,640.80 | $283,701.37 |
| 9 | $6,007.71 | $18,263.70 | $277,693.66 |
| 10 | $6,410.06 | $17,861.36 | $271,283.60 |
What this mortgage calculator does
A mortgage is a loan secured by the home you buy, repaid in equal monthly instalments over a fixed term, most often 30 or 15 years. Each instalment contains interest on the remaining balance plus a slice of principal. This calculator computes that principal-and-interest payment, adds the recurring costs that lenders bundle into your bill (property tax, homeowners insurance and HOA dues), and shows how the balance falls year by year.
Mortgage payment formula
The monthly principal-and-interest payment for a fixed-rate loan is:
M = P × r ÷ (1 − (1 + r)−n)
- P = loan amount (price minus down payment)
- r = monthly interest rate (annual rate ÷ 12, as a decimal)
- n = number of monthly payments (years × 12)
Example: a $400,000 home with 20% down leaves a $320,000 loan. At 6.5% for 30 years, r = 0.065 ÷ 12 = 0.005417 and n = 360. The payment is 320,000 × 0.005417 ÷ (1 − 1.005417−360) = $2,022.62 per month. Over 30 years that adds up to $728,142 in payments, of which $408,142 is interest. Adding $3,600 a year in property tax and $1,200 in insurance brings the monthly bill to $2,422.62.
How to use this calculator
- Enter the purchase price and your down payment, either as dollars or as a percentage of the price.
- Type the annual interest rate you have been quoted and choose the loan term.
- Optionally add yearly property tax and insurance, and monthly HOA dues, to see the full housing payment.
- Read the breakdown and scroll the schedule to see how much principal you will have paid by any year.
Tips for lowering the cost
- Shorter term: a 15-year loan has a bigger payment but cuts total interest dramatically. Change the term above to compare.
- Extra principal: one additional payment a year on a 30-year loan typically shortens it by about four years.
- 20% down: avoids private mortgage insurance on conventional loans and lowers the balance that accrues interest.
- Shop the rate: a quarter-point difference on $320,000 is roughly $50 a month and $18,000 over 30 years.
The calculator assumes a fixed rate and equal monthly payments. It does not include PMI, closing costs or future changes in tax and insurance. For other borrowing, see the loan calculator or the auto loan calculator.
Frequently asked questions
What does PITI mean?
PITI stands for principal, interest, taxes and insurance: the four parts of a typical monthly mortgage payment. Principal and interest go to the lender; property tax and homeowners insurance are usually collected into an escrow account and paid on your behalf. HOA dues, if any, are paid separately but still count toward your housing cost.
How much house can I afford?
A common lender guideline is the 28/36 rule: keep your total housing payment (PITI) under 28% of your gross monthly income and all debt payments under 36%. On a $7,000 monthly income that is roughly $1,960 for housing. Lenders also look at your credit score, down payment and cash reserves.
Does a 15-year mortgage save money?
Yes, substantially. The monthly payment is higher because the balance is repaid in half the time, but far less interest accrues overall, and 15-year loans usually carry a lower rate. Try changing the term above to compare total interest for your numbers.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is largest at the start. On a $320,000 loan at 6.5%, the first payment includes about $1,733 of interest and only $289 of principal. As the balance falls, each payment shifts more toward principal, which is why extra payments early on save the most.
Do I need to pay PMI?
Private mortgage insurance is normally required on conventional loans when the down payment is below 20% of the price. It typically costs 0.3% to 1.5% of the loan amount per year and can be removed once you reach 20% equity. This calculator does not include PMI, so add it to the insurance field if it applies to you.