Mortgage Calculator
Work out your monthly mortgage payment and see exactly where the money goes. Enter the home price, down payment, rate and term to get your payment, total interest, payoff date and a full amortization schedule — in any currency.
How your monthly mortgage payment is calculated
A mortgage payment usually has four parts, known together as PITI: Principal, Interest, Taxes and Insurance. The principal-and-interest part repays the loan itself and is fixed for a fixed-rate mortgage. It is found with the standard amortizing-loan formula M = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount you borrow, r is the monthly interest rate (the annual rate ÷ 12 ÷ 100) and n is the number of monthly payments (years × 12).
Property tax, home insurance and any PMI or HOA dues are then added on top. For example, a $240,000 loan at 6.5% over 30 years works out to about $1,517 a month in principal and interest, with roughly $306,000 of interest paid over the full term. Add taxes and insurance and the real monthly figure climbs further — which is why seeing the whole picture before you buy matters.
What an amortization schedule shows you
Amortization is the way a loan is paid down over time. Every month you pay the same total, but the split changes: at the start almost all of it is interest, because the balance is large. As the balance shrinks, more of each payment attacks the principal. The year-by-year schedule this calculator builds shows how much principal and interest you pay in each year and what balance remains — so you can see, for instance, that after five years of a 30-year loan you may still owe most of what you borrowed.
That front-loaded interest is also why extra payments early on are so powerful: a little extra principal in year one removes interest that would otherwise compound for decades.
How much house can you afford?
A common guideline is the 28/36 rule: aim to keep your total housing payment under about 28% of your gross monthly income, and all debt payments (including the mortgage) under about 36%. Lenders use similar ratios to decide what they will approve. Remember that owning a home also brings costs a mortgage calculator can't see — maintenance, repairs, utilities and closing costs — so leaving a margin below the maximum you qualify for is usually wise.
Ways to pay less interest overall
Four levers make the biggest difference. A larger down payment shrinks the loan and can remove PMI once you reach 20% equity. A shorter term (15 or 20 years) carries a higher monthly payment but a lower rate and dramatically less total interest. Extra principal payments — even one extra payment a year — can cut years off the loan. And refinancing to a lower rate can help if rates fall enough to outweigh the closing costs.
Fixed rate vs adjustable rate (ARM)
A fixed-rate mortgage keeps the same rate and principal-and-interest payment for the whole term, giving you certainty for budgeting — this calculator assumes a fixed rate. An adjustable-rate mortgage (ARM) starts with a lower fixed period and then moves with the market, so your payment can rise or fall later. ARMs can suit people who plan to move or refinance before the rate adjusts, but they carry the risk of higher payments down the line.
Frequently asked questions
How is a monthly mortgage payment calculated?
The principal-and-interest part uses M = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r the monthly rate (annual ÷ 12 ÷ 100) and n the number of months. Taxes, insurance, PMI and HOA are added on top.
What does PITI mean?
Principal, Interest, Taxes and Insurance — the four parts of a typical monthly payment. Taxes and insurance are often collected into an escrow account and paid by the lender on your behalf.
What is an amortization schedule?
A table showing how each payment splits between interest and principal over time. Early payments are mostly interest; later ones are mostly principal, until the balance reaches zero.
How much of a down payment do I need?
Many loans allow 3–5% down, but 20% or more avoids private mortgage insurance (PMI), lowers the loan amount and usually earns a better rate.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but a lower rate and far less total interest. A 30-year loan eases monthly cash flow but costs more overall. Compare both above.
How can I pay off my mortgage faster?
Make extra principal payments, pay biweekly, or refinance to a shorter term. Because early payments are mostly interest, extra principal early in the loan saves the most.