Mortgage Calculator

A mortgage is likely the largest loan you will ever take on, and small differences in rate, term, or down payment translate into tens of thousands of dollars over the life of the loan. This calculator turns your inputs into a clear monthly payment and a full amortization schedule so you can see exactly where your money goes.

Inputs

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Results

Monthly Payment (P&I)

$2,129

Down Payment$80,000
Loan Amount$320,000
Total Interest$446,428
Total Cost$846,428

Amortization Schedule

MonthPaymentPrincipalInterestBalance
1$2,129$262$1,867$319,738
2$2,129$264$1,865$319,474
3$2,129$265$1,864$319,208
4$2,129$267$1,862$318,942
5$2,129$268$1,860$318,673
6$2,129$270$1,859$318,403
7$2,129$272$1,857$318,131
8$2,129$273$1,856$317,858
9$2,129$275$1,854$317,583
10$2,129$276$1,853$317,307
11$2,129$278$1,851$317,029
12$2,129$280$1,849$316,749

How to Use

  1. 1Enter the home price you are considering.
  2. 2Input your planned down payment as a percentage (20% avoids PMI).
  3. 3Enter the current interest rate from your lender or use today's average.
  4. 4Select your loan term — 30 years gives lower monthly payments, 15 years saves significant interest.
  5. 5Review the monthly payment and scroll down for the full amortization schedule.

What your monthly payment actually covers

The figure this calculator returns is your principal and interest (P&I) — the core of the loan repayment. Principal is the portion that reduces your outstanding balance; interest is the lender's charge for borrowing. In the early years of a 30-year loan, the overwhelming majority of each payment is interest, and only a sliver goes to principal. That ratio flips slowly over time, which is why building meaningful equity in the first few years is so gradual.

Your real-world housing payment is larger than P&I. Lenders typically collect property taxes and homeowners insurance in an escrow account, adding roughly $300–$800 per month depending on where you live. If your down payment is below 20%, private mortgage insurance (PMI) is added until you reach 20% equity. When you compare homes, always think in terms of the full PITI (principal, interest, taxes, insurance) payment, not just P&I.

How rate and term change the total cost

The interest rate has an outsized effect because it compounds monthly across hundreds of payments. On a $320,000 loan, moving from 7% to 6% lowers the monthly payment by roughly $210 and saves more than $75,000 in interest across 30 years. This is why locking a favorable rate — or refinancing when rates fall — matters so much.

The loan term is the other major lever. A 15-year mortgage carries a higher monthly payment but a lower rate and dramatically less total interest, because you are borrowing the money for half as long. A 30-year loan keeps monthly payments affordable but costs far more overall. Use the amortization schedule below to compare terms side by side and see how quickly the balance falls in each scenario.

Using the amortization schedule

Scroll to the amortization table to see every payment broken into principal, interest, and remaining balance. This view makes the power of extra principal payments obvious: an additional $150 per month applied directly to principal can shave years off a 30-year loan and eliminate a large chunk of interest, because every dollar of early principal reduction avoids all the future interest that dollar would have generated.

Frequently Asked Questions

What is included in the monthly payment?+

This calculator shows principal and interest (P&I) only. Your actual mortgage payment will also include property taxes, homeowners insurance, and possibly PMI — typically adding $300–$800/month.

What is PMI and how do I avoid it?+

PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It typically costs 0.5–1% of the loan annually. You can avoid it by putting at least 20% down.

Should I choose a 15-year or 30-year mortgage?+

A 15-year mortgage typically has a lower interest rate and saves tens of thousands in interest, but has higher monthly payments. A 30-year mortgage is more affordable month-to-month but costs more overall.

How does the amortization schedule work?+

Early payments are mostly interest with little principal reduction. Over time, more goes toward principal. This is called amortization — your equity builds slowly at first, then accelerates.

Can I pay off my mortgage early?+

Yes. Making extra principal payments reduces your balance faster, cuts interest costs, and shortens the loan term. Even $100 extra/month on a 30-year loan can save years of payments.

This calculator is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making real estate or financial decisions.