Mortgage Calculator
Calculate your monthly mortgage payment and full cost breakdown
Amortization Schedule
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 🏠 Calculate above to see your schedule | ||||
How to Use the Mortgage Calculator
Enter your home price, down payment percentage, loan term, and interest rate to see your estimated monthly payment. Include annual property tax and insurance for a complete monthly housing cost.
How Monthly Payments Are Calculated
Monthly payments are split between principal (reducing your debt) and interest (the lender's fee). Early payments are mostly interest — this gradually shifts toward principal over the life of the loan.
How Much Down Payment Do I Need?
20% down avoids private mortgage insurance (PMI) and reduces monthly payments. Many lenders accept 3–5% for first-time buyers, though this increases your total interest paid.
Currency Support
Switch between USD, EUR, GBP, and PLN using the selector. All values and symbols update automatically.
Mortgage Payments, Explained Properly
Built and verified by Andrius R. · Updated June 2026
A mortgage payment looks like one number, but it's really four: principal, interest, taxes, and insurance — often abbreviated PITI. The calculator above handles all four. What it can't do is decide what's sensible for you, so this guide walks through the trade-offs that actually move the numbers.
A complete worked example
Home price $350,000, down payment 20% ($70,000), loan amount $280,000, rate 6.5%, term 30 years.
Monthly rate r = 0.065 ÷ 12 = 0.005417. Number of payments n = 360.
M = 280,000 × [0.005417 × (1.005417)360] ÷ [(1.005417)360 − 1] = $1,769.79 per month.
Over 30 years you pay roughly $357,100 in interest — more than the original loan. That's not a scam; it's what 6.5% compounded over three decades costs.
30-year vs 15-year: the real comparison
Same $280,000 loan at 6.5%:
| Term | Monthly payment | Total interest | Difference |
|---|---|---|---|
| 30 years | $1,769.79 | ~$357,100 | — |
| 15 years | $2,439.10 | ~$159,000 | saves ~$198,100 |
The 15-year loan costs $669 more per month but cuts total interest by more than half. (In practice 15-year loans usually also carry a slightly lower rate, so the real-world saving is even bigger.) The catch: that higher payment is mandatory. If your income is variable, a 30-year loan with voluntary extra payments gives you the same destination with an escape hatch.
What an extra $200 a month actually does
Take the same 30-year loan and add $200/month toward principal. The loan is paid off in 22 years 9 months instead of 30, and total interest drops from ~$357,100 to ~$255,800 — a saving of roughly $101,300 for $200 a month. Extra payments early in the loan matter most, because that's when your balance (and therefore your interest charge) is highest.
Why early payments are mostly interest
Each month, interest is charged on the remaining balance. In month one of the example above, the interest charge is 280,000 × 0.005417 ≈ $1,517 — so of your $1,769.79 payment, only about $253 reduces the debt. By the final years the ratio flips. This is why the amortization table above looks so lopsided at the start, and why selling or refinancing within a few years means you've barely touched the principal.
The costs the headline payment hides
- PMI — with less than 20% down, US lenders typically add private mortgage insurance of roughly 0.3–1.5% of the loan per year until you reach ~20% equity.
- Property tax — commonly 0.5–2.5% of home value per year depending on location, usually escrowed into the monthly payment.
- Homeowners insurance — required by every lender; varies widely with location and rebuild cost.
- Closing costs — typically 2–5% of the loan amount, paid upfront. On a $280,000 loan that's $5,600–$14,000 before you own anything.
- Maintenance — a common planning rule is 1% of home value per year. Not part of the mortgage, but very much part of the cost of owning.
Common mistakes to avoid
- Shopping by monthly payment alone. A longer term always lowers the payment and always raises the total cost. Compare total interest, not just the monthly figure.
- Maxing out what the lender approves. Approval is based on gross income; your life runs on net income. A widely used guideline is keeping total housing costs under 28% of gross income.
- Ignoring rate differences that look small. On this example loan, the difference between 6.5% and 7.0% is about $93/month — roughly $33,500 over the full term. Getting quotes from 3+ lenders is the highest-paid hour of work most buyers will ever do.
- Forgetting that extra payments must be flagged as principal-only. Otherwise some servicers apply them to next month's payment, which saves you nothing.
From the Blog
// Quick Tips
Use sliders for quick estimates or type exact values in the fields below each slider.
// 20% Rule
20% down avoids PMI, saving money every month and reducing total interest.
// Fixed vs Variable
Fixed rates are predictable. Variable rates start lower but can increase over time.
// Shorter Term
15-year mortgages have higher monthly payments but far less total interest paid.