Mortgage Calculator
Calculate your monthly home loan payment, see the full amortization schedule, and discover how extra payments accelerate your payoff.
P&I payment
cost
paid
of loan
| Metric | Standard | + Extra | You save |
|---|---|---|---|
| Monthly P&I | — | — | — |
| Payoff time | — | — | — |
| Total interest | — | — | — |
| Total paid | — | — | — |
| # | Payment | Principal | Interest | Balance | Equity |
|---|
Disclaimer: This mortgage calculator is for educational and informational purposes only. Results assume fixed interest rates and consistent payments. Actual mortgage costs may differ based on lender terms, escrow requirements, and rate changes (for ARMs). PMI rates and property taxes vary by location. This is not financial, tax, or legal advice. Consult a qualified mortgage professional before making home purchase decisions.
How to use this mortgage calculator
Enter the home price, your down payment, the loan term, and the interest rate. The calculator shows your monthly principal and interest payment, plus an amortization schedule showing how each payment splits over the life of the loan.
To get the most accurate result, use a rate from a lender pre-approval or a current rate quote — not an average from the news, which may not reflect what you personally qualify for.
What the monthly payment includes (and doesn't)
This calculator shows your principal and interest (P&I) payment — the core mortgage payment. Your actual monthly housing cost will also include:
- Property taxes — typically 0.5%–2% of the home value per year, collected monthly by your servicer
- Homeowners insurance — typically $80–$200/month depending on location and coverage
- PMI — required if your down payment is below 20%, usually 0.5%–1.5% of the loan amount per year
- HOA fees — if applicable, ranging from $100 to $1,000+/month
Add these to your P&I payment to get your true all-in monthly housing cost — and check that total against the 28% front-end DTI guideline (your housing costs should not exceed 28% of your gross monthly income).
How extra payments reduce your mortgage
Even modest extra payments have a significant impact over a 30-year loan. On a $350,000 mortgage at 7%, an extra $200/month saves approximately $58,000 in interest and cuts 5 years off the repayment. The earlier in the loan you make extra payments, the greater the impact — because you are reducing the principal on which future interest accrues.
When making extra payments, confirm with your servicer that the additional amount is applied to principal, not credited toward your next payment.
15-year vs 30-year mortgage: which is right for you?
The choice between a 15-year and 30-year mortgage is one of the most consequential decisions in the home-buying process. Both have clear advantages — the right one depends on your income stability, monthly cash flow, and long-term financial goals.
30-year mortgage:
- Lower monthly payment — typically 30–40% less than a 15-year on the same loan amount
- More cash flow flexibility each month for investing, emergencies, or other goals
- Higher total interest paid over the life of the loan — often 2x the amount of a 15-year
- Slightly higher interest rate (lenders charge more for the longer term)
15-year mortgage:
- Lower interest rate — typically 0.5–0.75% below a 30-year
- Build equity much faster — more of each payment goes to principal from day one
- Significantly less total interest paid
- Higher monthly payment — requires stronger, more stable income
A useful middle path: take the 30-year loan but make extra principal payments equivalent to the 15-year payment when you can afford it. You get the lower required payment as a safety net, while paying off the loan at roughly a 15-year pace in good months. Use the calculator above to compare both scenarios with your actual numbers.
How down payment size affects your total cost: exact numbers
Your down payment affects three things simultaneously: your loan amount, whether you pay PMI, and the interest rate you qualify for. Here is how different down payments play out on a $400,000 home at 6.8% APR over 30 years:
| Down Payment | Loan Amount | Monthly P&I | PMI/mo | Total Interest |
|---|---|---|---|---|
| 5% ($20,000) | $380,000 | $2,484 | ~$285 | $514,400 |
| 10% ($40,000) | $360,000 | $2,353 | ~$225 | $487,100 |
| 20% ($80,000) | $320,000 | $2,091 | $0 | $433,000 |
| 25% ($100,000) | $300,000 | $1,960 | $0 | $405,800 |
Going from 5% to 20% down eliminates ~$510/month in combined PMI and principal costs, and saves over $81,000 in total interest. However, putting 25% down instead of 20% only saves an additional $27,000 — a much smaller return on the extra $20,000 invested in the down payment. Once you clear the 20% PMI threshold, the benefit of a larger down payment diminishes quickly.
Fixed-rate vs ARM: what the numbers look like in practice
A 5/1 ARM typically starts 0.5–1% below a 30-year fixed rate, then adjusts annually after year 5. The initial savings are real — but so is the rate risk. Here is how they compare on a $350,000 loan:
| Loan Type | Starting Rate | Monthly Payment (yr 1–5) | Worst-case Payment (lifetime cap) |
|---|---|---|---|
| 30-yr Fixed | 6.8% | $2,285 | $2,285 (never changes) |
| 5/1 ARM | 6.1% | $2,120 | ~$2,870 (at 11.1% cap) |
The ARM saves $165/month for the first 5 years — a real $9,900 in savings. But if you are still in the home when rates adjust upward, the worst-case payment is $585/month higher than the fixed. The ARM makes financial sense when you are confident you will sell or refinance before year 5, or when you can absorb worst-case payment increases without hardship.
PMI: exact cost and how to eliminate it faster
PMI typically costs 0.5–1.5% of the loan amount per year. On a $320,000 loan, that is $1,600–$4,800 annually — or $133–$400 per month. It is not a small cost, and unlike interest, it builds no equity and serves only the lender.
Four ways to reach 20% equity and eliminate PMI faster:
- Make extra principal payments. Every extra dollar reduces your balance and accelerates the 80% LTV threshold. Use the calculator above to model how much faster you reach 80% with $100–$300 extra per month.
- Request a new appraisal after home value increases. If your home has appreciated, your LTV may already be below 80% based on current value. Most lenders require a formal appraisal (typically $300–$500) and a minimum of 2 years of loan seasoning.
- Lump sum payments from windfalls. Tax refunds, bonuses, or inheritance applied directly to principal can push you past 80% LTV in a single move.
- Automatic cancellation. Under the Homeowners Protection Act, PMI must be automatically cancelled when your scheduled payments bring the balance to 78% of the original purchase price — even without a request.
How much house you can actually afford: the honest calculation
Lenders use two ratios to determine how much they will lend. Understanding both helps you set a realistic budget before you start shopping.
Front-end ratio (housing costs ÷ gross income): Lenders typically want this below 28%. This includes your full monthly housing payment — P&I, taxes, insurance, HOA, and PMI.
Back-end ratio (all debt payments ÷ gross income): Lenders typically want this below 43%. This includes housing plus all other monthly debt obligations — car loans, student loans, credit card minimums.
| Gross Monthly Income | Max Housing Cost (28%) | Approx. Max Loan (6.8%, 30yr) |
|---|---|---|
| $5,000/month | $1,400 | ~$215,000 |
| $7,500/month | $2,100 | ~$325,000 |
| $10,000/month | $2,800 | ~$435,000 |
| $15,000/month | $4,200 | ~$650,000 |
These figures assume your all-in housing cost (P&I + taxes + insurance + PMI) stays within the 28% limit. If you carry significant other debt, your effective maximum loan will be lower — the back-end 43% cap becomes the binding constraint.
How to Use the Mortgage Calculator
Enter your home price, down payment, interest rate, and loan term to see your estimated monthly payment. Toggle on property tax, insurance, PMI, and HOA fees to get a complete picture of your true monthly housing cost.
The extra payment field shows how much interest you save by paying more each month. On a 30-year mortgage, even $200 extra per month can save tens of thousands in interest and shave years off your loan.
Understanding Your Mortgage Payment
Your monthly mortgage payment has two main parts: principal (paying down the loan) and interest (cost of borrowing). Early in your loan, most of your payment goes toward interest. Over time, more goes toward principal — this is amortization.
PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20%. It usually cancels automatically once your equity reaches 20%. Use our Loan Amortization Calculator to see the full payment schedule month by month.