Mortgage Calculator — Monthly Payment & Amortization

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Free Mortgage Calculator — Monthly Payment & Amortization
Calculate your exact monthly mortgage payment instantly. See how much goes to principal vs. interest each year, total interest over the life of the loan, and a full amortization schedule — all with the formula shown. No ads, no sign-up, no product pitches.Principal & interest breakdown
Year-by-year amortization
Formula always shown
No ads or sign-up

🏠 Enter Your Loan DetailsHome Price ($)Down Payment ($)Enter a down payment amountAnnual Interest Rate (%)Loan Term (Years)Monthly Payment—Total Interest Paid—Total Amount Paid—Monthly Payment Breakdown💰 Principal (Yr 1 avg)—💳 Interest (Yr 1 avg)—📐
Formula (Standard Amortization)
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] | P = loan amount, r = monthly rate, n = total payments
📊 Year-by-Year Amortization SummaryYearPrincipal PaidInterest PaidBalance Remaining
How to Use This Mortgage Calculator
1. Home Price — enter the full purchase price of the property.
2. Down Payment — enter the amount you plan to pay upfront. The calculator shows your down payment as a percentage automatically. The loan amount (Home Price − Down Payment) is what gets financed.
3. Annual Interest Rate — enter the annual rate from your lender's quote. For example, 6.5 means 6.5% per year. The calculator converts this to a monthly rate automatically.
4. Loan Term — enter the number of years. Standard terms are 15 or 30 years. A shorter term means higher monthly payments but much less total interest.
All four results appear instantly. The amortization table shows how your balance decreases each year over the full loan term.💡 This calculator covers principal & interest only
• Your actual monthly payment will also include property taxes (typically 1–1.5% of home value per year)
• Homeowners insurance (typically $100–$200/month)
• PMI (Private Mortgage Insurance) if your down payment is less than 20%
• HOA fees if applicable
How Mortgage Payments Work — The Math Explained
A mortgage is an amortizing loan, which means each monthly payment covers both interest and a portion of the principal. In the early years, the vast majority of each payment goes to interest. As the loan ages, the balance decreases, so less interest accrues each month — meaning more of each payment goes to principal.
The amortization formula
Monthly Payment (M) = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
• P = Principal loan amount (Home Price − Down Payment)
• r = Monthly interest rate (Annual Rate ÷ 12 ÷ 100)
• n = Total number of payments (Years × 12)
Example: $280,000 loan at 6.5% for 30 years. r = 6.5/12/100 = 0.005417. n = 360. M = 280,000 × [0.005417 × (1.005417)³⁶⁰] ÷ [(1.005417)³⁶⁰ − 1] = $1,771/month.
Why the total interest is so high
On a 30-year mortgage at 6.5%, you pay more in interest than you borrowed in the first place. A $280,000 loan at 6.5% for 30 years costs $357,600 in interest — a total of $637,600 for a $280,000 loan. This is not a flaw; it's the cost of spreading payments over 360 months. A 15-year term at the same rate would cost roughly $135,000 in interest — saving over $220,000.
How down payment affects your loan
A larger down payment reduces your loan principal, which reduces every monthly payment for the life of the loan. It also eliminates PMI (Private Mortgage Insurance, typically 0.5–1% of loan value per year) once your down payment reaches 20%. Putting 20% down on a $350,000 home ($70,000) vs. 10% down ($35,000) saves you approximately $222 per month in principal+interest alone.
Mortgage Payment Examples🏠 Starter Home
Price: $250,000 | Down: $25,000 (10%)
Rate: 6.5% | Term: 30 years
Monthly: $1,421 | Total interest: $286,490🏘️ Mid-range Home
Price: $450,000 | Down: $90,000 (20%)
Rate: 6.75% | Term: 30 years
Monthly: $2,335 | Total interest: $480,600⏱️ 15-Year Payoff
Price: $300,000 | Down: $60,000 (20%)
Rate: 6.0% | Term: 15 years
Monthly: $2,026 | Total interest: $124,680📉 Low Rate Era
Price: $400,000 | Down: $80,000 (20%)
Rate: 3.0% | Term: 30 years
Monthly: $1,349 | Total interest: $165,600
How to Pay Off Your Mortgage Faster
Make extra principal payments
Any payment above your required monthly amount reduces your principal directly. Even $100 extra per month on a 30-year, $300,000 mortgage at 6.5% saves over $57,000 in interest and pays off the loan 4 years early.
Biweekly payments
Instead of 12 monthly payments, make 26 biweekly half-payments per year. You end up making 13 full payments annually instead of 12 — effectively one extra payment per year. On a 30-year mortgage, this typically shortens the loan by 4–5 years.
Refinancing
If interest rates drop significantly (typically 1% or more) after you take out your mortgage, refinancing into a new loan at a lower rate can save thousands over the loan's life. Factor in closing costs (typically 2–5% of the loan amount) when evaluating whether refinancing makes financial sense.
Lump sum payments
Tax refunds, work bonuses, or any windfall applied directly to your mortgage principal can dramatically reduce total interest paid and shorten your loan term. Always specify that lump sum payments should be applied to principal, not future payments.
Frequently Asked Questions
What is the monthly payment on a $300,000 mortgage?
It depends on your interest rate and loan term. At 6.5% for 30 years on a $300,000 loan, the monthly payment is approximately $1,896. At 6.5% for 15 years, it's approximately $2,613. Enter your exact details above for a precise calculation.
Does this calculator include taxes and insurance?
No. This calculator shows principal and interest only — the two components determined by your loan amount, rate, and term. Your actual total monthly payment will also include property taxes, homeowners insurance, and PMI if your down payment is under 20%. These vary by location and lender.
What is amortization?
Amortization is the process of paying off a loan through regular fixed payments over time. Each payment covers both interest (cost of borrowing) and principal (the actual loan balance). Early payments are mostly interest; later payments are mostly principal. The amortization schedule above shows this shift year by year.
Is 20% down payment required?
No. Many loan programs allow down payments as low as 3% (conventional) or 3.5% (FHA). However, putting less than 20% down typically requires Private Mortgage Insurance (PMI), which adds 0.5–1% of the loan amount per year to your monthly costs. PMI can be removed once you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has higher monthly payments but significantly lower total interest — often saving $100,000 or more. A 30-year mortgage has lower monthly payments, giving you more cash flow flexibility. The best choice depends on your income stability, other financial goals, and how long you plan to stay in the home.
How accurate is this mortgage calculator?
Very accurate for principal and interest calculations. It uses the standard amortization formula used by lenders worldwide. The results will match your lender's quoted P&I payment exactly (assuming you input the same loan amount, rate, and term). Taxes, insurance, and fees are not included.
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