Know exactly what your home loan will cost before you sign. Our free mortgage payment calculator shows your monthly payment, including principal, interest, property tax, homeowners insurance and PMI, and builds a complete amortization schedule so you can see how every payment chips away at your balance.
Whether you are a first-time buyer comparing a 15-year and 30-year loan, or a homeowner wondering how much an extra $200 a month would save, this tool gives you the answer in seconds. No sign-up, no email required.
How to Use the Mortgage Calculator
- Enter the home price. Use the purchase price or the price range you are shopping in.
- Add your down payment. Enter it as a dollar amount or a percentage. Putting down less than 20% on a conventional loan usually means paying PMI.
- Choose your loan term. 30 years gives the lowest payment; 15 years costs far less in total interest.
- Enter the interest rate. Use the rate from your lender’s quote or Loan Estimate. Even 0.25% makes a visible difference.
- Add taxes, insurance and HOA (optional). Include annual property tax, annual homeowners insurance and monthly HOA dues for a realistic total.
- Try an extra payment (optional). Add a monthly or one-time extra amount to see your new payoff date and interest saved.
- Click Calculate. Review your monthly breakdown, then scroll to the amortization schedule. Export it as CSV or PDF to save or share with your lender.
What the Results Show
- Monthly payment: principal and interest, plus taxes, insurance, PMI and HOA when entered.
- Total interest paid over the life of the loan.
- Payoff date based on your start date.
- Amortization schedule: month-by-month and year-by-year views of interest, principal and remaining balance.
- Balance chart: how quickly your equity grows.
How Your Monthly Mortgage Payment Is Calculated
A fixed-rate mortgage payment comes from one standard formula. It sets a payment that stays the same every month and brings the balance to exactly zero on the final payment.
M = P × [ r(1 + r)n ] ÷ [ (1 + r)n − 1 ]
- M = monthly principal and interest payment
- P = loan amount (home price minus down payment)
- r = monthly interest rate (annual rate ÷ 12)
- n = number of payments (years × 12)
Worked Example
You buy a $400,000 home with 20% down ($80,000), so you borrow $320,000 at a 6.5% fixed rate for 30 years.
- r = 0.065 ÷ 12 = 0.0054167
- n = 30 × 12 = 360
- M = $2,022.62 per month for principal and interest
Over 360 payments you pay $728,142 in total, of which $408,142 is interest, more than the amount you borrowed.
What’s in a Full Payment: PITI
Your real monthly bill is usually higher than principal and interest. Lenders call the full amount PITI.
| Component | What it is | Typical cost |
|---|---|---|
| Principal | Pays down the loan balance | Grows each month |
| Interest | Lender’s charge for borrowing | Shrinks each month |
| Taxes | Property tax, often collected in escrow | Varies widely by county, roughly 0.3%–2.5% of home value a year |
| Insurance | Homeowners insurance, often in escrow | Varies by location and coverage |
| PMI | Private mortgage insurance when you put down under 20% on a conventional loan | Roughly 0.3%–1.5% of the loan a year |
| HOA dues | Paid to a homeowners association, usually not through escrow | $0 to several hundred a month |
In the example above, adding $4,800 a year in property tax and $1,800 in insurance raises the monthly payment from $2,022.62 to about $2,572.62. Always budget for the full PITI number, not just principal and interest.
What Is an Amortization Schedule?
An amortization schedule is a table that splits every mortgage payment into interest and principal and shows the balance left after each one. Your payment stays the same, but the mix inside it changes every month.
Each month, interest is charged only on the remaining balance. Early on the balance is large, so most of the payment goes to interest. As the balance falls, less goes to interest and more goes to principal, which speeds up the payoff.
The First Three Payments
Using the same $320,000 loan at 6.5% for 30 years ($2,022.62 a month):
| Payment | Interest | Principal | Remaining balance |
|---|---|---|---|
| 1 | $1,733.33 | $289.28 | $319,710.72 |
| 2 | $1,731.77 | $290.85 | $319,419.86 |
| 3 | $1,730.19 | $292.43 | $319,127.44 |
In month one, 86% of the payment is interest. Only $289 actually reduces what you owe.
The Loan Year by Year
| End of year | Interest paid that year | Principal paid that year | Remaining balance |
|---|---|---|---|
| 1 | $20,695 | $3,577 | $316,423 |
| 5 | $19,636 | $4,636 | $299,555 |
| 10 | $17,432 | $6,839 | $264,444 |
| 15 | $15,407 | $8,864 | $232,189 |
| 20 | $12,014 | $12,257 | $178,129 |
| 25 | $7,322 | $16,949 | $103,373 |
| 30 | $833 | $23,438 | $0 |
Three things stand out:
- The tipping point comes late. Principal does not overtake interest until payment 233, about 19.5 years into a 30-year loan.
- Equity builds slowly at first. After five years you still owe about $299,555, roughly 94% of the original loan.
- The last decade moves fast. The balance drops by more than $178,000 in the final 10 years.
This is why an amortization schedule matters: it shows how much equity you will have if you sell or refinance in 5 or 10 years, and where an extra payment does the most good.
How Extra Payments Shorten Your Mortgage
An extra $200 a month on the example loan saves $105,429 in interest and pays the house off 6 years and 7 months early. Every extra dollar goes straight to principal, so it stops future interest from being charged on that dollar.
| Scenario | Monthly P&I | Payoff time | Total interest |
|---|---|---|---|
| 30-year at 6.5%, no extra | $2,022.62 | 30 years | $408,142 |
| 30-year at 6.5%, +$200/month | $2,222.62 | 23 years 5 months | $302,714 |
| 15-year at 5.75%* | $2,657.31 | 15 years | $158,316 |
*15-year loans usually carry a lower rate than 30-year loans; 5.75% is an illustrative assumption. Plug in your own quotes to compare.
Use the extra payment field in the calculator to test your own numbers. Before you start, confirm with your lender that the loan has no prepayment penalty and that extra money is applied to principal.
7 Ways to Lower Your Monthly Mortgage Payment
- Make a bigger down payment. A smaller loan means a smaller payment, and reaching 20% removes PMI on conventional loans.
- Raise your credit score before applying. Better scores usually qualify for lower rates.
- Shop at least three lenders. Compare Loan Estimates side by side; rate and fees vary between lenders for the same borrower.
- Consider buying discount points. Paying points up front lowers the rate. Worth it only if you keep the loan past the break-even point.
- Remove PMI as soon as you can. Ask your lender to cancel it once you reach 20% equity; on conventional loans it ends automatically at 22% under federal rules.
- Appeal your property tax assessment if it looks too high compared with similar homes.
- Shop homeowners insurance yearly. A lower premium cuts the escrow part of your payment.
Biweekly Payments
Paying half your payment every two weeks means 26 half-payments, or 13 full payments, a year. That one extra payment trims several years off a 30-year loan. Check that your servicer applies biweekly payments as they arrive rather than holding them until month end.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Principal and interest come from the standard amortization formula using your loan amount, monthly interest rate and number of payments. Property tax, homeowners insurance, PMI and HOA dues are then added to get your full monthly cost.
Why does most of my early payment go to interest?
Interest is charged on the remaining balance, which is highest at the start. As you pay the balance down, the interest portion shrinks and the principal portion grows.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher payment but usually a lower rate and far less total interest. A 30-year loan keeps the payment lower and leaves more monthly flexibility. Run both in the calculator to see which fits your budget.
How much does PMI cost?
PMI on a conventional loan typically runs about 0.3% to 1.5% of the loan amount per year, depending on your credit score and down payment. It can be removed once you reach 20% equity.
Do extra payments really make a difference?
Yes. On a $320,000, 30-year loan at 6.5%, an extra $200 a month saves over $105,000 in interest and cuts more than six years off the loan.
Does this calculator include taxes and insurance?
Yes. Enter your annual property tax and homeowners insurance to see your full PITI payment, not just principal and interest.
Is this mortgage calculator free?
Yes. It is free, needs no sign-up, and runs in your browser. Your numbers are not stored.
Disclaimer: Results are estimates for planning only and are not a loan offer or financial advice. Your actual rate and payment depend on your lender, credit and location.