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Mortgage Payment Calculator

Estimate your monthly principal & interest, property tax, insurance, and HOA — plus total interest and a full amortization preview.

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Loan details

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Optional housing costs

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These are estimates only — actual amounts depend on your location and lender.

Estimated monthly payment

$2,478

Principal & interest: $2,023

Loan amount

$320,000

Total interest

$408,282

Total paid

$728,282

Monthly cost breakdown

Principal & interest $2,023
Property tax $350
Home insurance $150
HOA fee $0
Total monthly $2,523

Loan summary

Home price$400,000
Down payment$80,000 (20%)
Loan amount$320,000
Interest rate6.50%
Loan term30 years
Total interest$408,282
Total of payments$728,282

Amortization preview (first 12 months)

Month Payment Principal Interest Balance

How mortgage payments are calculated

A mortgage payment is made up of several components, but the core calculation is the principal and interest (P&I) payment. Lenders use the standard amortization formula:

M = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]

Principal

The principal is the amount you borrow. Early in the loan, most of your payment goes toward interest; over time, more goes toward principal. This is the core of amortization.

Interest

Interest is the cost of borrowing money, expressed as an annual percentage rate (APR). Your monthly interest is calculated on the remaining loan balance, so as the balance drops, the interest portion shrinks.

Down payment

The down payment reduces the loan amount. A larger down payment means a smaller loan, lower monthly payments, and often a better interest rate. Many conventional loans require 20% down to avoid private mortgage insurance (PMI).

Interest rate

Even a small change in your interest rate can significantly affect your monthly payment and total interest. Shop around and consider locking your rate when you're ready.

Loan term

A 30-year term gives lower monthly payments but more total interest. A 15-year term has higher monthly payments but saves significantly on interest. Choose based on your budget and goals.

Amortization

Amortization is the schedule of loan payments over time. Each payment is split between principal and interest. Our amortization preview shows how your balance declines month by month.

Total interest

Total interest is the sum of all interest payments over the life of the loan. It can be surprisingly large — often close to or more than the original loan amount on a 30-year mortgage.

Taxes and insurance

Property taxes, homeowners insurance, and HOA fees are often collected monthly in an escrow account. These vary widely by location and property type, so we show them separately from P&I. Always confirm actual amounts with your lender and local tax authority.

Worked example

Suppose you buy a $400,000 home with a 20% down payment ($80,000). Your loan amount is $320,000 at 6.5% for 30 years.

Adding $350/month property tax, $150/month insurance, and $0 HOA gives an estimated total monthly payment of about $2,523.

Frequently asked questions

How is the monthly mortgage payment calculated?

We use the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. Optional costs like taxes, insurance, and HOA are added separately.

What is the difference between principal and interest?

Principal is the amount you borrow. Interest is the cost of borrowing. Early in the loan, most of your payment goes toward interest; later, more goes toward principal. This shift is called amortization.

How much down payment do I need?

Many conventional loans require at least 3–5% down, but 20% is common to avoid private mortgage insurance (PMI). FHA loans may allow as little as 3.5% down. Your lender can explain requirements for your situation.

Does a larger down payment lower my monthly payment?

Yes. A larger down payment reduces your loan amount, which lowers your monthly principal and interest. It may also help you qualify for a lower interest rate and avoid PMI.

How do property taxes and insurance affect my payment?

Lenders often collect these monthly in an escrow account, so they become part of your total monthly housing payment. They vary widely by location, property, and insurance provider — always confirm actual amounts.

What is an amortization schedule?

An amortization schedule is a table showing each payment's breakdown between principal and interest, plus the remaining balance. It helps you see how your loan pays down over time.

Can I pay off my mortgage faster?

Yes. Making extra payments toward principal can reduce your balance faster and save on total interest. Check with your lender about prepayment penalties before making extra payments.

Are the results guaranteed?

No. This calculator provides estimates for educational purposes. Actual mortgage terms, rates, fees, and payments depend on your lender, credit profile, location, and other factors. Always consult a qualified mortgage professional.