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Mortgage Payment Calculator

Calculate your monthly mortgage payment, total interest paid, and see a detailed amortization schedule with principal vs interest breakdowns for any home loan.

Finance Tool

Total purchase price of the home

%($70,000.00)

Amount paid upfront. 20% or more avoids PMI.

Length of the mortgage loan

Annual fixed interest rate

Monthly Payment

$1,769.79

Loan Amount

$280,000.00

Total Interest

$357,124.57

Total Cost

$637,124.57

Payment Breakdown

Principal
Interest
Principal: $280,000.00 (43.9%)Interest: $357,124.57 (56.1%)

Monthly Breakdown (First 12 Months)

MonthPaymentPrincipalInterestBalance
1$1,769.79$253.12$1,516.67$279,746.88
2$1,769.79$254.49$1,515.30$279,492.38
3$1,769.79$255.87$1,513.92$279,236.51
4$1,769.79$257.26$1,512.53$278,979.25
5$1,769.79$258.65$1,511.14$278,720.60
6$1,769.79$260.05$1,509.74$278,460.54
7$1,769.79$261.46$1,508.33$278,199.08
8$1,769.79$262.88$1,506.91$277,936.20
9$1,769.79$264.30$1,505.49$277,671.90
10$1,769.79$265.73$1,504.06$277,406.16
11$1,769.79$267.17$1,502.62$277,138.99
12$1,769.79$268.62$1,501.17$276,870.37

Yearly Summary

YearTotal PaidPrincipalInterestRemaining
1$21,237.48$3,129.60$18,107.88$276,870.37
2$21,237.48$3,339.23$17,898.26$273,531.14
3$21,237.48$3,562.86$17,674.62$269,968.28
4$21,237.48$3,801.48$17,436.00$266,166.80
5$21,237.48$4,056.07$17,181.42$262,110.74
6$21,237.48$4,327.69$16,909.79$257,783.03
7$21,237.48$4,617.55$16,619.94$253,165.49
8$21,237.48$4,926.80$16,310.69$248,238.70
9$21,237.48$5,256.73$15,980.75$242,981.95
10$21,237.48$5,608.81$15,628.68$237,373.15
11$21,237.48$5,984.43$15,253.07$231,388.72
12$21,237.48$6,385.20$14,852.28$225,003.51
13$21,237.48$6,812.86$14,424.62$218,190.66
14$21,237.48$7,269.11$13,968.37$210,921.54
15$21,237.48$7,755.93$13,481.55$203,165.60
16$21,237.48$8,275.37$12,962.11$194,890.22
17$21,237.48$8,829.58$12,407.91$186,060.63
18$21,237.48$9,420.92$11,816.56$176,639.71
19$21,237.48$10,051.86$11,185.63$166,587.84
20$21,237.48$10,725.07$10,512.42$155,862.79
21$21,237.48$11,443.33$9,794.16$144,419.46
22$21,237.48$12,209.72$9,027.76$132,209.75
23$21,237.48$13,027.42$8,210.07$119,182.33
24$21,237.48$13,899.90$7,337.59$105,282.44
25$21,237.48$14,830.80$6,406.68$90,451.65
26$21,237.48$15,824.04$5,413.45$74,627.62
27$21,237.48$16,883.79$4,353.69$57,743.82
28$21,237.48$18,014.53$3,222.95$39,729.28
29$21,237.48$19,221.01$2,016.47$20,508.27
30$21,237.48$20,508.28$729.20$0.00

How to Use

  1. 1Enter the home price or total loan amount you plan to borrow.
  2. 2Set the annual interest rate from your lender's quote.
  3. 3Choose the loan term in years (common options are 15 or 30 years).
  4. 4View your monthly payment breakdown showing principal and interest portions.
  5. 5Review the total amount paid over the life of the loan and total interest cost.

About This Tool

The Mortgage Payment Calculator breaks down your monthly payment into principal and interest so you can see exactly where your money goes each month. Enter a loan amount, interest rate, and term to get an instant payment estimate.

Most homebuyers focus on the monthly payment, but the total interest paid over the loan's life is equally important. On a $300,000 mortgage at 6.5% for 30 years, you will pay approximately $382,000 in interest alone — more than the original loan amount. Choosing a 15-year term at the same rate cuts total interest to roughly $145,000, though the monthly payment increases significantly.

This tool helps you compare scenarios before speaking with lenders. Try different down payment amounts to see how they affect your monthly obligation, or compare 15-year versus 30-year terms to find the right balance between monthly cash flow and long-term cost.

The calculator uses standard amortization formulas used by banks and mortgage companies. Results are estimates — your actual payment may include property taxes, homeowner's insurance, and PMI, which are not included here.

Tips & Best Practices

  • Even small rate differences matter: on a $300,000 loan, the difference between 6.0% and 6.5% is about $100/month and over $35,000 in total interest over 30 years.
  • Consider a 15-year mortgage if you can handle higher payments — you will typically get a lower rate and pay less than half the total interest of a 30-year loan.
  • Your actual monthly housing cost includes property taxes, insurance, and possibly PMI — budget 25-35% above the principal and interest payment shown here.

Frequently Asked Questions

How is a monthly mortgage payment calculated?
A monthly mortgage payment is calculated using the 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 divided by 12), and n is the total number of monthly payments. This formula gives you the fixed monthly payment that covers both principal and interest over the life of the loan.
How much should I put as a down payment?
Conventional wisdom suggests a 20% down payment to avoid Private Mortgage Insurance (PMI). However, many loan programs allow as little as 3-5% down. A larger down payment means lower monthly payments, less total interest paid, and potentially better interest rates. Consider your financial situation and emergency fund when deciding.
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 on the loan. It usually costs between 0.5% and 1% of the loan amount per year and can be removed once you reach 20% equity in your home.
What is the difference between a fixed-rate and adjustable-rate mortgage?
A fixed-rate mortgage has the same interest rate for the entire loan term, so your monthly payment stays consistent. An adjustable-rate mortgage (ARM) starts with a lower rate for an initial period (e.g., 5 or 7 years), then adjusts periodically based on market conditions. ARMs can save money initially but carry the risk of higher payments later.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on total interest and builds equity faster. A 30-year mortgage offers lower monthly payments, giving you more cash flow flexibility. For example, on a $300,000 loan at 6%, a 15-year mortgage saves over $150,000 in interest compared to a 30-year mortgage.
When should I consider refinancing my mortgage?
Consider refinancing when interest rates drop at least 0.5-1% below your current rate, when you want to switch from an ARM to a fixed rate, when you want to shorten your loan term, or when you need to tap into home equity. Factor in closing costs (typically 2-5% of the loan amount) to ensure the savings outweigh the costs.

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