Mortgage & Loan Calculator
Calculate your monthly payment, taxes, insurance, PMI, total interest cost, and full amortization schedule in seconds. Adjust inputs to compare realistic home-buying scenarios.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $2,346.93 | $306.93 | $2,040.00 | $359,693 |
| 2 | $2,346.93 | $308.67 | $2,038.26 | $359,384 |
| 3 | $2,346.93 | $310.42 | $2,036.51 | $359,074 |
| 4 | $2,346.93 | $312.18 | $2,034.75 | $358,762 |
| 5 | $2,346.93 | $313.95 | $2,032.98 | $358,448 |
| 6 | $2,346.93 | $315.73 | $2,031.20 | $358,132 |
| 7 | $2,346.93 | $317.52 | $2,029.42 | $357,815 |
| 8 | $2,346.93 | $319.31 | $2,027.62 | $357,495 |
| 9 | $2,346.93 | $321.12 | $2,025.81 | $357,174 |
| 10 | $2,346.93 | $322.94 | $2,023.99 | $356,851 |
| 11 | $2,346.93 | $324.77 | $2,022.16 | $356,526 |
| 12 | $2,346.93 | $326.61 | $2,020.32 | $356,200 |
How Mortgage Payments Work
A fixed-rate mortgage payment is calculated using the amortization formula: each payment covers the interest accrued since the last payment, with the remainder reducing the principal balance. Early in the loan, most of each payment goes toward interest; as the balance shrinks, more goes to principal.
The Formula
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] — where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual ÷ 12), and n is the total number of payments.
15-Year vs 30-Year
On a $360,000 loan at 6.8%, a 30-year mortgage costs ~$2,341/month and ~$483,000 in total interest. The same loan on a 15-year term costs ~$3,195/month but only ~$215,000 in total interest — saving nearly $268,000.
PMI — Private Mortgage Insurance
If your down payment is less than 20%, lenders typically require PMI. This adds roughly 0.5–1% of the loan balance per year (~$50–$100/month on a $200,000 loan) until you reach 20% equity. This calculator lets you adjust the PMI rate and estimates how many payments it remains in effect before the balance reaches 80% loan-to-value.
Taxes, Insurance, and HOA
Your actual housing payment usually includes more than principal and interest. Property taxes, homeowner's insurance, HOA dues, and PMI can materially change affordability, so the monthly payment tile includes all of those inputs.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Using the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12).
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage builds equity faster and costs far less in total interest — typically 50–60% less than a 30-year — but payments are 30–45% higher. Choose 15-year if you can comfortably afford the payments. Choose 30-year if lower monthly payments give you important cash-flow flexibility or if you plan to invest the difference.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) protects the lender if you default. It's required when your loan-to-value ratio exceeds 80% (i.e., down payment less than 20%). Under federal law (Homeowners Protection Act), PMI must be automatically cancelled when you reach 78% LTV based on the original amortization schedule. You can request cancellation at 80% LTV.
What is an amortization schedule?
A month-by-month breakdown of every payment showing how much goes to interest vs. principal, and the remaining balance. At the start of a 30-year mortgage, roughly 80% of each payment is interest. By year 20, that ratio flips.
How much house can I afford?
The traditional guideline is that your monthly housing costs (mortgage + taxes + insurance) should not exceed 28% of your gross monthly income, and total debt should stay under 36% (the "28/36 rule"). At 6.8% interest, a 30-year loan of $360,000 costs ~$2,341/month P&I — meaning you'd want gross income of ~$8,375/month ($100,500/year) to qualify comfortably.
Does paying extra principal save money?
Yes, significantly. On a $400,000 30-year loan at 6.8%, adding just $200/month to your payment saves over $68,000 in interest and pays off the loan 5 years early. Any extra payment goes directly to principal reduction, eliminating future interest on that amount.
Example Rates
| Product | Rate |
|---|---|
| 30-yr Fixed | 6.80% |
| 15-yr Fixed | 6.15% |
| 5/1 ARM | 6.10% |
| FHA 30-yr | 6.55% |
| VA 30-yr | 6.30% |
Example rates only. Check with lenders for current offers.