Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and view a full amortization schedule. Includes property tax, insurance, PMI, and extra payment analysis.
Aquesta calculadora encara no s'ha traduït al Català.
De moment mostrem la versió en Anglès mentre acabem la traducció.
Loan Details
USD
%
USD
%
30 years
Taxes & Insurance
USD
USD
Not required (20%+ down payment)
Repayment method
yr
Interest-only years before principal repayment begins. 0 = none.
USD
USD
USD
Monthly Payment (P&I)
$1,438.92
Total Interest
$278,013
Total Loan Cost
$518,013
Payoff Date
Aug 2056
360 payments
Amortization Schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
1 | $17,267 | $2,947 | $14,320 | $237,053 |
2 | $17,267 | $3,129 | $14,138 | $233,924 |
3 | $17,267 | $3,322 | $13,945 | $230,602 |
4 | $17,267 | $3,527 | $13,740 | $227,075 |
5 | $17,267 | $3,744 | $13,523 | $223,331 |
6 | $17,267 | $3,975 | $13,292 | $219,355 |
7 | $17,267 | $4,221 | $13,047 | $215,135 |
8 | $17,267 | $4,481 | $12,786 | $210,654 |
9 | $17,267 | $4,757 | $12,510 | $205,897 |
10 | $17,267 | $5,051 | $12,216 | $200,846 |
11 | $17,267 | $5,362 | $11,905 | $195,484 |
12 | $17,267 | $5,693 | $11,574 | $189,791 |
13 | $17,267 | $6,044 | $11,223 | $183,747 |
14 | $17,267 | $6,417 | $10,850 | $177,330 |
15 | $17,267 | $6,813 | $10,455 | $170,518 |
16 | $17,267 | $7,233 | $10,034 | $163,285 |
17 | $17,267 | $7,679 | $9,588 | $155,606 |
18 | $17,267 | $8,152 | $9,115 | $147,454 |
19 | $17,267 | $8,655 | $8,612 | $138,798 |
20 | $17,267 | $9,189 | $8,078 | $129,609 |
21 | $17,267 | $9,756 | $7,511 | $119,853 |
22 | $17,267 | $10,358 | $6,909 | $109,496 |
23 | $17,267 | $10,996 | $6,271 | $98,499 |
24 | $17,267 | $11,675 | $5,592 | $86,825 |
25 | $17,267 | $12,395 | $4,872 | $74,430 |
26 | $17,267 | $13,159 | $4,108 | $61,271 |
27 | $17,267 | $13,971 | $3,296 | $47,300 |
28 | $17,267 | $14,833 | $2,435 | $32,467 |
29 | $17,267 | $15,747 | $1,520 | $16,720 |
30 | $17,267 | $16,719 | $548 | $1 |
Aquesta calculadora és només per a finalitats informatives. No constitueix assessorament financer.
Mortgage calculator. Monthly payment, total interest, and amortization schedule.
A mortgage calculator estimates your full monthly payment — principal, interest, property tax, insurance and PMI — for any home price, rate and term. It also builds a complete amortization schedule showing how each payment splits between interest and principal over the life of the loan.
What Is a Mortgage?
A 400,000-dollar home bought with 20% down borrows 320,000 dollars, and at 6.5% over 30 years that loan costs about 2,023 dollars a month in principal and interest. Add roughly 400 dollars in property tax and 150 dollars in homeowners insurance and the real payment is closer to 2,573 dollars a month. Stretched across 360 payments, the interest alone reaches about 408,141 dollars — more than the amount borrowed. That gap between the sticker price and what the house truly costs is exactly what a mortgage calculator makes visible before you sign.
A mortgage is a loan used to buy real estate, with the property itself as collateral. In the United States the 30-year fixed-rate loan is by far the most common, though 15-year and 20-year terms are popular with buyers who want to clear the debt faster. Payments follow French amortization: you pay the same fixed amount every month, and each payment is split between interest (the cost of borrowing) and principal (the balance you still owe). Early on, most of the payment is interest because the balance is large; over time the split flips and more of each payment reduces the principal. That gradual shift is the amortization curve.
Your monthly housing cost is more than principal and interest. Lenders bundle in property taxes and homeowners insurance through an escrow account, and if your down payment is under 20% they add private mortgage insurance (PMI). Together these four pieces — principal, interest, taxes and insurance — are called PITI, and PITI is the number that actually leaves your bank account each month. A payment estimate that shows only principal and interest can understate the true cost by hundreds of dollars.
One honest caveat: this is an estimate for planning, not lending advice. Your real quote depends on your credit score, the lender, and local tax and insurance rates, and closing costs are separate from the payment shown here. Use the calculator to compare scenarios — a bigger down payment, a shorter term, a lower rate — and see how each one changes the monthly payment and the total interest.
How to Use the Mortgage Calculator
This mortgage calculator does the amortization math for you — enter the details of your purchase and read the full payment. Here is what each field means:
1. Home price. The purchase price of the property, for example 400,000 dollars. This is not the loan amount — your down payment comes off the top first.
2. Down payment. The cash you pay upfront, entered as a percentage or a dollar amount. Put 20% down on a 400,000-dollar home and you borrow 320,000 dollars; put 10% down and you borrow 360,000 dollars and trigger PMI.
3. Interest rate. Your annual rate as a percentage, such as 6.5% or 7%. Even a quarter-point difference moves the total interest by thousands over 30 years.
4. Loan term. How long you have to repay, usually 30, 20 or 15 years. A shorter term raises the monthly payment but cuts the total interest sharply.
5. Property tax and homeowners insurance. Your annual amounts, which the calculator divides by 12 and adds to the payment. Roughly 400 dollars a month in tax and 150 dollars in insurance are typical on a 400,000-dollar home.
6. PMI. Applied automatically when the down payment is under 20%, and removed automatically once the balance drops to 80% of the home's value.
The calculator returns your monthly PITI (principal, interest, taxes and insurance), the total interest over the life of the loan, and a month-by-month amortization schedule. For a 400,000-dollar home with 20% down at 6.5% over 30 years, it shows about 2,023 dollars in principal and interest, a full PITI near 2,573 dollars a month, and roughly 408,141 dollars in interest across the term. When you read the results, do not stop at the principal-and-interest figure — the PITI is what you actually pay, and the total interest is what the loan truly costs.
Mortgage Payment Formula
- = Monthly payment, principal and interest only
- = Principal loan amount (home price minus down payment)
- = Monthly interest rate (annual rate divided by 12)
- = Total number of monthly payments (years multiplied by 12)
This is the French amortization formula, the standard used by virtually every mortgage lender in the United States. It produces a fixed monthly payment that stays constant for the life of the loan, with each payment covering the interest due that month and the rest chipping away at the balance until it reaches zero on the final payment.
To use it by hand, convert the annual rate to a monthly rate by dividing by 12, then raise one plus that monthly rate to the number of payments. Take a 300,000-dollar home bought with 20% down: you borrow 240,000 dollars, and at 7% over 30 years the monthly rate is 0.0058333 and there are 360 payments.
That 1,596.73 dollars is principal and interest only. Over the 360 payments the interest adds up to about 334,818 dollars — more than the amount borrowed — which is why even a small rate cut or a steady overpayment saves so much.
The full monthly payment adds the escrow pieces on top: one-twelfth of the annual property tax, one-twelfth of the annual insurance, and PMI when the down payment is under 20%.
On that 300,000-dollar home, adding 300 dollars a month in tax and 125 dollars in insurance brings the PITI to about 2,022 dollars a month. PMI, when it applies, typically runs 0.5% to 1.5% of the loan amount per year and drops off automatically once you reach 20% equity.
PITI Scenarios at a Glance (30-Year Fixed)
| Home price | Down | Rate | P&I / mo | PMI / mo | PITI / mo | Total interest |
|---|---|---|---|---|---|---|
| $400,000 | 20% | 6.5% | $2,022.62 | $0 | $2,572.62 | $408,140.64 |
| $400,000 | 10% | 6.5% | $2,275.44 | $150 | $2,975.44 | $459,164 |
| $300,000 | 20% | 7% | $1,596.73 | $0 | $2,021.73 | $334,817.84 |
| $400,000 + 300/mo extra | 20% | 6.5% | $2,022.62 | $0 | $2,572.62 | $269,695.73 |
Real Mortgage Examples: Down Payment, PMI, and Extra Payments
$400,000 home with 20% down (no PMI)
Put 20% down on a 400,000-dollar home and you borrow 320,000 dollars. At 6.5% over 30 years the principal-and-interest payment is 2,022.62 dollars a month. Add about 400 dollars in monthly property tax and 150 dollars in homeowners insurance and the full PITI comes to 2,572.62 dollars a month — with no PMI, because the 20% down payment clears that requirement. Across all 360 payments the interest totals 408,140.64 dollars — more than the amount borrowed — so the home listed at 400,000 dollars ends up costing about 808,141 dollars once you add three decades of interest. This is the everyday baseline: a fifth down, a 30-year fixed rate, and a full monthly payment that runs several hundred dollars above the principal-and-interest figure lenders often quote first.
$400,000 home with 10% down (PMI applies)
A buyer who puts only 10% down on the same 400,000-dollar home borrows 360,000 dollars instead of 320,000. At 6.5% over 30 years the principal-and-interest payment rises to 2,275.44 dollars, and because the down payment is under 20%, the lender adds private mortgage insurance — about 150 dollars a month here. With 400 dollars in property tax and 150 dollars in insurance on top, the full PITI reaches 2,975.44 dollars a month, roughly 403 dollars more than the 20%-down buyer pays. Total interest climbs to 459,164 dollars. The PMI is not permanent, though: it drops off automatically once the balance falls to 80% of the home's value, so this buyer stops paying it partway through the loan and the payment steps down.
Adding $300 a month saves over $138,000
Take the 400,000-dollar home with 20% down — a 320,000-dollar loan at 6.5% over 30 years — and add 300 dollars to every monthly payment. The base principal-and-interest stays at 2,022.62 dollars, but the extra 300 dollars goes straight to the balance, so it shrinks faster each month. Total interest falls from 408,140.64 dollars to 269,695.73 dollars — a saving of about 138,445 dollars — and the loan clears years ahead of schedule. The extra payment does its heaviest work in the early years, when the balance is largest and most of each scheduled payment still goes to interest. This is the single strongest reason to run the numbers: a steady overpayment you barely feel each month can erase roughly a third of the total interest over the life of the loan.
A smaller home at a higher rate: $300,000 at 7%
Not every purchase is a 400,000-dollar home. Buy a 300,000-dollar home with 20% down and you borrow 240,000 dollars; at 7% over 30 years the principal-and-interest payment is 1,596.73 dollars a month. Add 300 dollars in property tax and 125 dollars in insurance and the full PITI is 2,021.73 dollars a month — almost exactly what the principal and interest alone would cost on the larger 400,000-dollar home. Total interest over the term is 334,817.84 dollars. The comparison shows why the rate and the loan size matter as much as the price: a smaller loan at a higher rate can still carry a lighter monthly payment, and the total interest — not the sticker price — is the figure that tells you how expensive the borrowing really is.
Common Mortgage Mistakes to Avoid
- Judging affordability by the principal-and-interest figure alone. The payment a lender quotes first is often just principal and interest. On a 400,000-dollar home with 20% down at 6.5%, that is 2,022.62 dollars a month — but the full PITI, with property tax and insurance, is 2,572.62 dollars. Ignoring the escrow pieces understates the real payment by 550 dollars a month here. Always budget from the PITI, not the principal-and-interest number.
- Forgetting that PMI is temporary. Private mortgage insurance is charged only while your down payment leaves you under 20% equity. By federal law (the Homeowners Protection Act) the lender must cancel it automatically once the balance reaches 78% of the original value, and you can request removal at 80%. This calculator drops PMI automatically at 80% loan-to-value, so do not assume the higher early payment lasts the whole 30 years — and if your home has appreciated, a new appraisal can end PMI even sooner.
- Choosing a 30-year term for the low payment without seeing the interest. A 30-year term gives the smallest monthly payment, which is why most buyers pick it — but it is also the most expensive way to borrow. On a 320,000-dollar loan at 6.5%, the 30-year term generates about 408,141 dollars in interest, more than the amount borrowed. A shorter term or a steady overpayment cuts that sharply: adding 300 dollars a month to the same loan saves about 138,445 dollars in interest. Look at the total interest, not just the payment, before committing to the longest term.
- Leaving out HOA dues, maintenance, and utilities. Even a full PITI is not the whole cost of ownership. Homeowners association (HOA) dues, repairs, maintenance and utilities sit on top of the mortgage payment and can add hundreds of dollars a month, especially in condos and planned communities. A common rule of thumb is to set aside about 1% of the home's value each year for maintenance alone — roughly 4,000 dollars a year on a 400,000-dollar home. The calculator estimates the loan and escrow; keep a separate cushion for everything else.
- Confusing the home price with the loan amount. The loan is the home price minus your down payment, not the price itself. A 400,000-dollar home with 20% down is a 320,000-dollar loan; with 10% down it is a 360,000-dollar loan that also triggers PMI. Entering the full purchase price as the loan amount overstates every result — subtract the down payment first, then read the payment.
- Not shopping the rate. Lenders do not all quote the same rate, and the gap compounds over 30 years. Even a quarter-point difference on a 320,000-dollar loan changes the total interest by thousands of dollars. Compare the APR — which folds in most lender fees — from at least three or four lenders, including credit unions and online lenders, before you lock a rate.
- Ignoring extra payments and refinancing. Two levers cut a mortgage's cost without changing the home you buy. Adding a fixed amount to the principal every month — even 100 or 300 dollars — shortens the term and saves tens of thousands in interest, because the extra goes straight to the balance. And when market rates fall roughly a percentage point below your own, refinancing can be worth the closing costs (typically 2% to 5% of the loan); work out the break-even point in months before you decide.
Frequently Asked Questions About Mortgages
How much house can I afford on a $100,000 salary?
A common guideline is the 28/36 rule: spend no more than 28% of gross income on housing. On a 100,000-dollar salary that is about 2,333 dollars a month for the full payment. For comparison, the PITI on a 400,000-dollar home with 20% down at 6.5% is 2,572.62 dollars a month — just above that budget — while a 300,000-dollar home at 7% comes to 2,021.73 dollars, comfortably within it. Lenders also check your total debt-to-income ratio (the 36 in the rule), so car loans and student debt lower what you qualify for.
What is PMI and when can I remove it?
Private mortgage insurance (PMI) applies when your down payment is under 20%. It protects the lender, not you, and typically costs 0.5% to 1.5% of the loan per year, about 150 dollars a month on a 360,000-dollar loan. It cancels automatically at 78% equity.
What is the difference between a fixed-rate and an adjustable-rate mortgage (ARM)?
A fixed-rate mortgage keeps the same interest rate for the entire term, so your principal-and-interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower introductory rate for a set period — commonly 5, 7 or 10 years — then adjusts periodically with a market index. A 5/1 ARM, for example, is fixed for 5 years and then adjusts annually. ARMs can pay off if you expect to sell or refinance before the first adjustment, but they carry the risk of higher payments if rates rise.
How does amortization work on a mortgage?
Amortization is paying off a mortgage through equal monthly payments, each split between interest and principal. Early on, most of the payment is interest because the balance is large. On a 240,000-dollar loan at 7%, the first month's 1,596.73-dollar payment is about 1,400 dollars interest and only 196.73 dollars principal. Over time the split flips, and in the final years almost the entire payment reduces the balance. An amortization schedule shows this breakdown for every payment.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a much higher monthly payment but saves heavily on total interest, because you borrow for half as long. A 30-year loan keeps the payment low and cash flow flexible. To see the size of the tradeoff: a 320,000-dollar loan at 6.5% over 30 years generates about 408,141 dollars in interest — and simply adding 300 dollars a month to that 30-year loan cuts the interest to 269,695.73 dollars. If you cannot commit to the 15-year payment, overpaying a 30-year loan captures much of the same saving with the freedom to stop in a tight month. Neither is universally better; it depends on your budget and other goals.
What is escrow, and why is it part of my payment?
Escrow is a holding account your mortgage servicer uses to pay property taxes and homeowners insurance on your behalf. Part of each monthly payment goes into it, and the servicer pays the tax and insurance bills when they come due. Lenders require escrow because an unpaid tax lien or lapsed insurance policy puts their collateral at risk. Because it is recalculated each year from the actual bills, your total payment can change even on a fixed-rate loan.
Do extra mortgage payments really save money?
Yes, often dramatically. Adding 300 dollars a month to a 320,000-dollar loan at 6.5% over 30 years cuts the total interest from 408,140.64 dollars to 269,695.73 dollars — a saving of about 138,445 dollars — and clears the loan years early. The extra goes straight to principal, so less interest accrues on every payment that follows. Overpayments help most in the early years, when the balance is largest. Just confirm your lender charges no prepayment penalty.
What are typical closing costs when buying a home?
Closing costs usually run 2% to 5% of the purchase price. On a 400,000-dollar home, that is roughly 8,000 to 20,000 dollars, covering lender fees, title insurance, appraisal, prepaid taxes and insurance, and recording fees. They are separate from your down payment, so you need both in cash to close. Sellers sometimes agree to cover part of the closing costs in negotiation.
Is this mortgage calculator free and accurate?
Yes, the calculator is free to use and applies the standard French amortization formula lenders use, so the principal-and-interest payment and total interest are precise for the numbers you enter. It also adds property tax, insurance and PMI to show the full PITI, and drops PMI automatically at 80% loan-to-value. Treat the result as an estimate for planning, though: your real quote depends on your credit and the lender, and it excludes closing costs.
What down payment should I enter to avoid PMI?
Put at least 20% down to avoid PMI. On a 400,000-dollar home that is 80,000 dollars, leaving a 320,000-dollar loan with no mortgage insurance. With 10% down you borrow 360,000 dollars and pay about 150 dollars a month in PMI until the balance reaches 80% of the value.