Mortgage Calculator
A mortgage payment has two parts: principal and interest on the loan, and the escrow items your lender collects alongside it. Enter the home price, down payment, rate and term to see the full monthly cost and how the balance falls each year.
Enter your figures below. Results update as you type.
Total monthly payment$2,572.62
| Monthly | Total | |
|---|---|---|
| Mortgage payment | $2,022.62 | $728,142.36 |
| Property tax | $400.00 | $144,000.00 |
| Home insurance | $150.00 | $54,000.00 |
| Total out of pocket | $2,572.62 | $926,142.36 |
- Principal & interest 79%
- Property tax 16%
- Home insurance 6%
- Home price
- $400,000.00
- Loan amount
- $320,000.00
- Down payment
- $80,000.00
- Total of 360 mortgage payments
- $728,142.36
- Total interest
- $408,142.36
- Paid off in
- 30 yr 0 mo
Total cost of the home
| Loan amount | $320,000.00 | 31.8% |
|---|---|---|
| Down payment | $80,000.00 | 8.0% |
| Total interest | $408,142.36 | 40.6% |
| Property tax | $144,000.00 | 14.3% |
| Home insurance | $54,000.00 | 5.4% |
- Total over 30 yr 0 mo
- $1,006,142.36
- Loan pay-off date
- Nov 2056
Monthly vs. bi-weekly payments
Monthly
$2,022.62Payment each month
Nov 2056Pay-off date
$408,142.36Total interest
Bi-weekly
$1,011.31Payment every two weeks
Dec 2050Pay-off date
$314,145.80Total interest
Bi-weekly saves $93,996.57 in interest and ends the loan 5 yr 11 mo sooner.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,576.72 | $20,694.69 | $316,423.28 |
| 2 | $3,816.26 | $20,455.15 | $312,607.02 |
| 3 | $4,071.84 | $20,199.57 | $308,535.17 |
| 4 | $4,344.54 | $19,926.87 | $304,190.63 |
| 5 | $4,635.50 | $19,635.91 | $299,555.13 |
| 6 | $4,945.95 | $19,325.46 | $294,609.18 |
| 7 | $5,277.19 | $18,994.22 | $289,331.98 |
| 8 | $5,630.62 | $18,640.80 | $283,701.37 |
| 9 | $6,007.71 | $18,263.70 | $277,693.66 |
| 10 | $6,410.06 | $17,861.36 | $271,283.60 |
| 11 | $6,839.35 | $17,432.06 | $264,444.26 |
| 12 | $7,297.39 | $16,974.02 | $257,146.86 |
| 13 | $7,786.11 | $16,485.30 | $249,360.75 |
| 14 | $8,307.56 | $15,963.85 | $241,053.19 |
| 15 | $8,863.94 | $15,407.48 | $232,189.25 |
| 16 | $9,457.57 | $14,813.84 | $222,731.68 |
| 17 | $10,090.96 | $14,180.45 | $212,640.72 |
| 18 | $10,766.77 | $13,504.64 | $201,873.95 |
| 19 | $11,487.84 | $12,783.57 | $190,386.11 |
| 20 | $12,257.20 | $12,014.21 | $178,128.90 |
| 21 | $13,078.09 | $11,193.32 | $165,050.81 |
| 22 | $13,953.96 | $10,317.46 | $151,096.86 |
| 23 | $14,888.48 | $9,382.93 | $136,208.38 |
| 24 | $15,885.59 | $8,385.83 | $120,322.79 |
| 25 | $16,949.47 | $7,321.94 | $103,373.32 |
| 26 | $18,084.61 | $6,186.80 | $85,288.71 |
| 27 | $19,295.77 | $4,975.64 | $65,992.94 |
| 28 | $20,588.05 | $3,683.37 | $45,404.89 |
| 29 | $21,966.86 | $2,304.55 | $23,438.03 |
| 30 | $23,438.03 | $833.39 | $0.00 |
- Balance
- Interest paid
- Total paid
How the Mortgage calculation works
M = P x i / (1 - (1 + i)^-n) where i = annual rate / 12 and n = number of monthly payments
P is the amount borrowed: the home price minus your down payment. The formula gives the fixed principal-and-interest payment; property tax, home insurance and HOA dues are then added as one-twelfth of their yearly cost.
Early payments are mostly interest. On a 30-year loan at 6.5%, about 86% of the first payment is interest, and the split only reaches half-and-half around year 19. Use the amortization calculator to see every year in detail.
What goes into a mortgage payment
Lenders describe the monthly payment with the shorthand PITI: principal, interest, taxes and insurance. The first two repay the loan. The second two are collected by the lender into an escrow account and passed on to your county and your insurer when the bills fall due.
- Principal: the part of each payment that reduces what you owe.
- Interest: the lender's charge for the month, calculated on the remaining balance.
- Property tax: set by your local government, usually 0.5% to 2% of the home's value a year.
- Home insurance: required by the lender for as long as you have the loan.
- PMI: private mortgage insurance, normally added when the down payment is under 20%.
- HOA dues: paid to a homeowners association where one exists. These are billed separately, not through escrow.
How the interest rate changes the payment
A small difference in rate is a large difference in cost over 30 years. On a $320,000 loan, each half point adds roughly $100 to $110 a month and about $37,000 to $39,000 in total interest.
| Rate | Monthly principal & interest | Total interest over 30 years |
|---|---|---|
| 5.5% | $1,816.92 | $334,093 |
| 6.0% | $1,918.56 | $370,682 |
| 6.5% | $2,022.62 | $408,142 |
| 7.0% | $2,128.97 | $446,428 |
| 7.5% | $2,237.49 | $485,495 |
How the loan term changes the payment
A shorter term raises the monthly payment and cuts the interest dramatically, because the balance is paid down faster and there are fewer months for interest to accrue. The figures below use the same $320,000 at 6.5%; in practice 15-year loans usually carry a lower rate as well, which widens the gap.
| Term | Monthly principal & interest | Total interest |
|---|---|---|
| 10 years | $3,633.54 | $116,024 |
| 15 years | $2,787.54 | $181,758 |
| 20 years | $2,385.83 | $252,600 |
| 30 years | $2,022.62 | $408,142 |
How the down payment changes the payment
Every dollar you put down is a dollar you do not borrow. On a $400,000 home at 6.5% over 30 years:
| Down payment | Loan amount | Monthly principal & interest | Total interest |
|---|---|---|---|
| 5% | $380,000 | $2,401.86 | $484,669 |
| 10% | $360,000 | $2,275.44 | $459,160 |
| 20% | $320,000 | $2,022.62 | $408,142 |
| 25% | $300,000 | $1,896.20 | $382,633 |
Below 20% down, most conventional loans also add PMI, which this table leaves out. Work out the cash you need at closing with the down payment calculator.
Fixed and adjustable rates
A fixed-rate mortgage keeps the same rate and the same principal-and-interest payment for the whole term. An adjustable-rate mortgage (ARM) starts with a fixed period, commonly 5, 7 or 10 years, and then resets at intervals based on a market index. ARMs usually start lower than fixed loans and carry the risk that payments rise later. This calculator models fixed-rate loans.
What lenders look at
Approval depends mainly on your credit score, your down payment and your debt-to-income ratio: your monthly debt payments divided by your gross monthly income. Many lenders look for housing costs under 28% of income and total debt under 36%, though some loan programs allow more. Check yours with the debt-to-income calculator.
Ways to pay less interest
- Pay a little extra each month. Adding $200 to the $2,022.62 payment above ends the loan 6 years and 7 months early and saves $105,428 in interest. Try it in the extra payment field.
- Choose a shorter term if the payment fits your budget.
- Improve your credit score before applying; better scores are offered lower rates.
- Compare several lenders. Rates and fees vary, and the APR is the figure that lets you compare offers fairly.
- Refinance if rates fall far enough to cover the closing costs within the time you expect to stay.
For the year-by-year picture of where each payment goes, see the amortization calculator or read how mortgage amortization works.
Frequently asked questions
How much house can I afford?
A common lender guideline is that housing costs stay under 28% of gross monthly income and total debt under 36%. Check your own figures with the debt-to-income calculator.
Does this include PMI?
Only if you enter it. Private mortgage insurance usually applies when the down payment is under 20% and typically costs 0.3% to 1.5% of the loan per year. Enter your yearly estimate in the PMI field to include it.
Do bi-weekly mortgage payments save money?
Yes, if your lender applies them as they arrive. Paying half the monthly amount every two weeks adds up to 26 half-payments, or 13 full payments, a year instead of 12. The extra payment goes to principal. The comparison under the calculator shows the pay-off date and interest for both schedules. Ask your servicer first: some hold the half-payments until a full one has built up, and some charge a fee for a bi-weekly plan.
Is a 15-year or 30-year mortgage better?
A 15-year loan has a higher payment but a lower rate and far less total interest. A 30-year loan keeps the payment low and leaves room in the budget. Run both terms here and compare the total interest line.
How do I calculate a mortgage payment by hand?
Use M = P x i / (1 - (1 + i)^-n), where P is the loan amount, i is the yearly rate divided by 12 and n is the number of monthly payments. For $320,000 at 6.5% over 30 years, i is 0.0054167 and n is 360, which gives $2,022.62 a month before taxes and insurance.
How is mortgage interest calculated each month?
Multiply the balance you still owe by the yearly rate and divide by 12. On a $320,000 balance at 6.5%, the first month's interest is $1,733.33. The rest of the payment reduces the balance, so the interest charge is a little smaller every month.
How do I calculate mortgage insurance (PMI)?
PMI is quoted as a yearly percentage of the loan, usually between 0.3% and 1.5%. Multiply the loan by the rate and divide by 12: 0.5% on a $380,000 loan is $1,900 a year, or $158.33 a month. On conventional loans it can be removed once you owe 80% of the home's original value.
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