Mortgage Calculator

Amortization Schedule

Month	Payment	Principal	Interest	Balance
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

How to Use This Mortgage Calculator

Our free mortgage payment calculator helps you estimate your monthly home loan payment based on the home price, down payment, interest rate, and loan term. Simply enter your details above to get an instant estimate that includes principal and interest. You can also add property taxes and homeowners insurance for a complete PITI payment breakdown.

Understanding Your Mortgage Payment

Your monthly mortgage payment consists of several components. The principal is the portion that reduces your loan balance. Interest is what the lender charges for the loan. Together, these make up the base payment calculated using standard amortization formulas. Property taxes are typically collected monthly by your lender and held in an escrow account. Homeowners insurance protects your property and is usually required by lenders.

The Mortgage Payment Formula

The standard formula for calculating a fixed-rate mortgage payment is: M = P × [r(1+r)^n] / [(1+r)^n - 1], where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate, and n is the number of payments. This calculator automates this formula and provides a complete amortization breakdown.

Mortgage Tips to Save Money

Making even one extra payment per year can shave years off your mortgage and save thousands in interest. Consider a 15-year term if you can afford higher payments — the interest rate is typically lower and you will build equity much faster. Shop multiple lenders to compare rates, as even a 0.25% difference in rate can save you tens of thousands over the life of a 30-year loan. If your down payment is under 20%, you will pay PMI — saving up for a larger down payment can eliminate this extra cost.

Mortgage Calculator FAQ

How is a monthly mortgage payment calculated?

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 payments (loan term in years multiplied by 12). This gives you the principal and interest portion. Property taxes and insurance are added separately.

What is included in a mortgage payment?

A typical mortgage payment includes four components known as PITI: Principal (the loan amount being repaid), Interest (the cost of borrowing), Taxes (property taxes, typically escrowed monthly), and Insurance (homeowners insurance and possibly PMI if your down payment is less than 20%).

How much house can I afford with my income?

A common guideline is the 28/36 rule: your monthly mortgage payment should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. For example, with a $6,000 monthly gross income, aim for a maximum mortgage payment of about $1,680.

What is a good mortgage interest rate?

Mortgage rates fluctuate based on economic conditions, credit score, loan type, and down payment. As of 2025-2026, rates for a 30-year fixed mortgage typically range from 6% to 7.5%. A rate below the current average for your loan type and credit profile is generally considered good. Rates are influenced by the Federal Reserve and bond markets.

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 typically offers a lower interest rate (usually 0.5-1% lower). A 30-year mortgage has lower monthly payments but costs more in total interest over the life of the loan. Choose 15-year if you can comfortably afford the higher payments; 30-year if you need lower payments or want to invest the difference.

What is PMI and when do I need it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home purchase price on a conventional loan. PMI typically costs 0.3% to 1.5% of the original loan amount per year. It protects the lender if you default. You can request PMI removal once you reach 20% equity, and it automatically cancels at 22% equity.

How does a larger down payment affect my mortgage?

A larger down payment reduces your loan amount (lowering monthly payments and total interest), may qualify you for a better interest rate, can eliminate the need for PMI (at 20% or more), and increases your starting equity in the home. Even a 1-2% higher down payment can save thousands over the life of the loan.

What is an amortization schedule?

An amortization schedule is a complete table showing every monthly payment over the life of your mortgage, broken down into principal and interest portions. In the early years, most of your payment goes toward interest. Over time, more goes toward principal. Our calculator generates a full amortization schedule so you can see exactly how your loan balance decreases over time.

Monthly Payment Breakdown