Mortgage Calculator
Calculate your monthly mortgage payment, total interest paid, and see an amortization summary. Adjust home price, down payment, loan term, and interest rate.
Monthly Payment (P&I)
$0.00
Loan Amount
$0.00
Total Interest
$0.00
Total Cost
$0.00
Amortization Summary
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|
About Mortgages
A mortgage is a loan used to purchase real estate, where the property serves as collateral. The monthly payment typically includes principal (the loan balance you are paying down) and interest (the cost of borrowing). This calculator uses the standard amortization formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments. Property taxes, insurance, and PMI are not included in this calculation.
FAQ
What is included in a monthly mortgage payment?
A full mortgage payment (often called PITI) includes Principal (paying down the loan balance), Interest (the lender's charge), Taxes (property taxes), and Insurance (homeowner's insurance). This calculator shows the P&I portion only. Taxes and insurance vary by location and policy.
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20% of the home price. PMI protects the lender if you default. It usually costs 0.5% to 1% of the loan amount per year and can be removed once you reach 20% equity.
Fixed-rate vs adjustable-rate mortgage?
A fixed-rate mortgage keeps the same interest rate for the entire term, giving predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate that can change periodically after an initial fixed period (e.g., 5/1 ARM = fixed for 5 years, then adjusts annually). ARMs carry more risk but may save money if you plan to sell or refinance before the rate adjusts.
How does a larger down payment help?
A larger down payment reduces your loan amount, which means lower monthly payments and less total interest paid. Putting down 20% or more also eliminates the need for PMI, saving you additional money each month. Even a few extra percentage points can save tens of thousands of dollars over the life of the loan.