Mortgage

Mortgage calculator

Your complete monthly payment — principal, interest, taxes, insurance, PMI, and HOA — with a full amortization schedule and exact savings from extra payments.

Loan Details
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$
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Monthly Costs
$
$
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%/yr
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Estimated monthly payment
$2,696.44/mo
Principal & Interest$2,171.44
Property Tax$375.00
Insurance$150.00
Loan amount$340,000
Total interest over life of loan$441,719
Payoff time30 yr 1 mo
Total of all P&I payments$781,719

Balance over time

NowYr 8Yr 15Yr 23Yr 30
Remaining balanceCumulative interest

Amortization schedule

YearPrincipalInterestBalance
Year 1$3,729$22,329$336,271
Year 2$3,982$22,075$332,289
Year 3$4,253$21,804$328,035
Year 4$4,543$21,515$323,493
Year 5$4,852$21,206$318,641
Year 6$5,182$20,875$313,459
Year 7$5,534$20,523$307,925
Year 8$5,911$20,146$302,014
Year 9$6,313$19,744$295,701
Year 10$6,743$19,315$288,958
Year 11$7,201$18,856$281,757
Year 12$7,691$18,366$274,066
Year 13$8,214$17,843$265,851
Year 14$8,773$17,284$257,078
Year 15$9,370$16,687$247,708
Year 16$10,008$16,050$237,700
Year 17$10,689$15,369$227,011
Year 18$11,416$14,642$215,596
Year 19$12,192$13,865$203,403
Year 20$13,022$13,035$190,381
Year 21$13,908$12,149$176,473
Year 22$14,854$11,203$161,619
Year 23$15,865$10,193$145,755
Year 24$16,944$9,113$128,811
Year 25$18,097$7,961$110,714
Year 26$19,328$6,729$91,386
Year 27$20,643$5,415$70,744
Year 28$22,047$4,010$48,696
Year 29$23,547$2,510$25,149
Year 30$25,149$908$0
Year 31$0$0$0

How this is calculated

Principal & interest use the standard fixed-rate formula: M = P × r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1), where P is the loan amount, r the monthly rate (6.60% ÷ 12), and n the number of payments. Taxes, insurance, and HOA are divided into monthly amounts and added on top. PMI is estimated at 0.6% of the loan per year and removed once your balance falls to 80% of the home price, matching how conventional lenders handle it. All math runs in your browser to the exact cent.

Common loan amounts

Complete Guide to Mortgage Calculations

Buying a home is one of the most significant financial decisions you'll ever make. Understanding exactly how your monthly payment is calculated is crucial for budgeting and comparing loan offers. This calculator breaks down the total cost of homeownership, not just the principal and interest.

The Mortgage Payment Formula

The core of your mortgage payment is the Principal and Interest (P&I). Lenders use a standard amortization formula to ensure your loan is paid off in exactly the specified number of years (e.g., 15, 20, or 30 years).

The formula used is:M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)

  • M: Total monthly payment
  • P: Principal loan amount
  • r: Monthly interest rate (annual rate divided by 12)
  • n: Number of payments (months)

This formula guarantees that in the early years of your loan, most of your payment goes toward interest. In the later years, the balance shifts, and you pay off the principal much faster. This is why making extra payments early on is so powerful.

Beyond Principal and Interest (PITI)

A realistic housing budget must account for "PITI" – Principal, Interest, Taxes, and Insurance. Our calculator includes:

  • Property Taxes: Usually collected by your local government to fund schools, roads, and services. Lenders often collect this monthly in an escrow account.
  • Homeowners Insurance: Required by lenders to protect the property against hazards like fire or theft.
  • HOA Fees: Homeowners Association dues for condos or planned communities.

Understanding Mortgage Insurance (PMI / LMI)

If your down payment is less than 20% of the home's purchase price, lenders typically require Mortgage Insurance. In the US, this is called Private Mortgage Insurance (PMI), while other regions may call it Lenders Mortgage Insurance (LMI).

This insurance protects the lender if you default on the loan, but you pay the premium. It usually costs between 0.3% and 1.5% of the loan amount annually. Once your loan balance drops to 80% of the home's value, this insurance is typically cancelled, lowering your monthly payment.

The Power of Extra Payments

Because of the way amortization works, adding even a small amount to your monthly payment can save you tens of thousands in interest and shave years off your loan. Any extra payment goes straight to the principal, reducing the balance that accrues interest the following month. Try entering $100 in the "Extra monthly payment" field to see the dramatic difference it makes.

Related calculators

Estimates are for educational purposes only and are not financial, tax, or lending advice. Actual rates, payments, taxes, and insurance vary by lender, credit profile, and location. Formulas used are shown on each page; verify final numbers with your lender or a licensed advisor.