See your true monthly payment, and everything it pays for.
Enter your numbers once. Get the full picture: every dollar of your payment, how your balance falls month by month, when you build equity and drop PMI, and what the loan really costs over its life.
Your loan
Your loan at a glance
The numbers over time
Balance and equity
Where each year's money goes
Each bar is one year of payments. Early on almost all of it is interest; the split flips as the balance falls.
Key milestones
Same loan, different terms
| Term | Monthly (P&I) | Total interest | Total paid | vs 30 years |
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Pay it off faster
Full amortization schedule
Click any year to open its twelve payments. Balances assume no extra payments.
| Date | Payment | Principal | Interest | Interest to date | Balance |
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How mortgages work
How to Calculate Your Mortgage Payment
Your monthly mortgage payment is determined by three key factors: the loan amount (principal), the interest rate, and the loan term. The standard amortization formula M = P[r(1+r)^n] / [(1+r)^n - 1] divides your total obligation into equal monthly payments that cover both principal and interest. On a typical $280,000 loan at 6.75% over 30 years, this formula produces a monthly payment of approximately $1,816.
Understanding Mortgage Amortization
Amortization is the process of spreading your loan into a series of fixed payments over time. In the early years of a 30-year mortgage, roughly 70-80% of each payment goes toward interest rather than principal. As the loan matures, this ratio gradually reverses, and more of each payment reduces your outstanding balance. Reviewing an amortization schedule helps you understand exactly how much equity you build with every payment.
Fixed-Rate vs Adjustable-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) typically offers a lower initial rate for 5, 7, or 10 years before adjusting annually based on market indexes. ARMs can save money if you plan to sell or refinance before the adjustment period, but they carry the risk of significantly higher payments if rates rise.
How Down Payment Affects Your Monthly Cost
A larger down payment directly reduces your loan amount, lowering both your monthly payment and total interest paid over the life of the loan. Putting down at least 20% also eliminates the need for Private Mortgage Insurance (PMI), which typically costs 0.5% to 1.5% of the loan amount annually. For example, increasing your down payment from 10% to 20% on a $350,000 home saves roughly $175 per month in PMI alone.
Common questions
How is my monthly mortgage payment calculated?
Your monthly payment is calculated using the loan amount, interest rate, and term with the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly rate, and n is the number of payments.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly less total interest. A 30-year mortgage offers lower payments and more flexibility. Choose based on your monthly budget and long-term financial goals.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI typically costs 0.5%-1.5% of the loan amount annually and can be removed once you reach 20% equity.
Does this calculator include property taxes and insurance?
This calculator focuses on principal and interest. Property taxes, homeowners insurance, and PMI are additional costs that vary by location. Use the total as a baseline and add those expenses for a complete picture.
How does the interest rate affect total cost?
Even a small rate difference has a large impact. On a $300,000 loan over 30 years, a 0.5% rate increase adds roughly $30,000 in total interest. Shopping for the best rate is one of the most valuable things you can do.
Estimates for planning only. Property tax, insurance and PMI vary by lender and location, and taxes and insurance usually change over time. Confirm exact figures with your lender before you commit.