Mortgage Payment Calculator
Calculate your monthly mortgage payment instantly. Enter home price, down payment, interest rate, and loan term to see your principal and interest breakdown.
Your monthly mortgage payment is made up of principal and interest (P&I). Property taxes, homeowners insurance, and mortgage insurance (if required) are separate costs paid through escrow. Use this calculator to model different home prices, down payment amounts, and loan terms to see exactly how each variable affects your required monthly obligation.
Mortgage Calculator Inputs
20% down ($80K) — No PMI typically required
Summary
$2,022.62
Principal + Interest only$408,142
Over the life of the loan$728,142
$80,000 down + $320,000 loan + $408,142 interestMortgage Balance Over Time
Remaining Loan Balance by Month
5-Year Equity Snapshot
After 5 years of payments, your remaining balance is $299,555. You will have paid down $20,156 in principal.
Interest vs. Principal Ratio
Over the full loan term, you pay $408,142 in total interest, which equals 128% of the original loan principal. Making extra payments or securing a lower rate can reduce this significantly.
Amortization Schedule
Monthly payment breakdown
Did you know?
A 1% drop in your mortgage rate can reduce your monthly payment by hundreds of dollars and save you tens of thousands in interest over the life of the loan.
Understanding Your Mortgage Payment
Learn how mortgage payments work, what factors drive your monthly cost, and how to reduce it.
1What Is a Mortgage Payment?
A standard mortgage payment has two core components: principal and interest (P&I). Principal is the money you borrowed and are paying back. Interest is the fee the lender charges for lending you that money, calculated as a percentage of your remaining loan balance each month.
Most homeowners also pay property taxes and homeowners insurance through an escrow account managed by the lender. If your down payment is less than 20%, private mortgage insurance (PMI) is typically added as a separate monthly line item. This calculator focuses on the P&I portion of your payment. Taxes, insurance, and PMI are separate costs that vary by location, property type, and lender requirements.
Early in your loan term, most of each payment covers interest. As your balance shrinks, the interest portion decreases and more of each payment goes toward principal. This is why a mortgage amortization chart shows a curve rather than a straight line.
How Down Payment Affects Your Payment
Your down payment directly determines your loan amount. On a $400,000 home, a 20% down payment ($80,000) means you borrow $320,000. A 10% down payment ($40,000) means you borrow $360,000. That $40,000 difference in loan amount translates to a meaningful difference in your monthly payment and total interest cost over the life of the loan.
If your down payment is below 20%, most conventional lenders require PMI. This insurance protects the lender if you default, but it adds $50 to $300 to your monthly payment depending on your loan size and credit score. Once your loan balance drops to 80% of the original home value, you can request PMI cancellation. Use our PMI removal timeline calculator to see exactly when you can eliminate that cost.
A larger down payment also gives you instant equity. If home values decline, a higher equity cushion reduces the risk of going underwater on your mortgage. A larger down payment typically qualifies you for a slightly lower interest rate and more flexible underwriting terms.
15-Year vs 30-Year Mortgages
The 30-year fixed-rate mortgage is the most popular choice because it offers the lowest monthly payment for a given loan amount. The tradeoff is that you pay significantly more in total interest. A 15-year mortgage requires a higher monthly payment but saves you tens or even hundreds of thousands of dollars in interest over the life of the loan.
| Feature | 30-Year | 15-Year |
|---|---|---|
| Monthly payment | Lower | Higher |
| Total interest | Higher | Much lower |
| Equity buildup | Slower | Much faster |
| Typical rate | Higher | 0.5% - 1% lower |
| Cash flow flexibility | More | Less |
A 20-year mortgage splits the difference. It offers lower total interest than a 30-year with a more manageable payment than a 15-year. Use the term selector in this calculator to compare payment amounts for each option side by side.
How to Use This Calculator
Enter your expected home price, down payment percentage, interest rate, and loan term. The calculator updates in real time and shows:
- Your monthly P&I payment amount
- Total interest you will pay over the full loan term
- A visual chart showing your loan balance declining month by month
- A detailed amortization schedule breaking down every payment into principal and interest
Adjust the sliders to test different scenarios. See how a 1% rate change shifts your monthly payment. Compare a 30-year loan to a 15-year. Model a larger down payment. All calculations run in your browser. No data is sent to a server.
What This Calculator Does Not Include
This calculator shows principal and interest only. A complete monthly housing payment may also include:
- Property taxes. These vary widely by county and state. Budget for 1% to 3% of the home value annually depending on your location.
- Homeowners insurance. Required by every lender. Cost depends on coverage limits, deductible, and location-specific risks like flood or earthquake zones.
- Private mortgage insurance (PMI). Required if your down payment is under 20%. PMI can be canceled once you reach 80% loan-to-value. See our PMI removal calculator.
- HOA fees. If you buy in a community with a homeowners association, monthly or annual dues apply separately.
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Mortgage Calculator Frequently Asked Questions
Everything you need to know about mortgage payments and amortization.
1How is my monthly mortgage payment calculated?
Your monthly P&I payment is calculated using 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. This formula ensures each payment covers the interest accrued that month while paying down a portion of the principal, fully retiring the loan by the end of the term.
2What is included in a P&I payment?
Principal and interest (P&I) is the core component of your mortgage payment. Principal is the portion that reduces your loan balance. Interest is the cost of borrowing money, calculated as a percentage of your remaining balance each month. This does not include property taxes, homeowners insurance, or mortgage insurance, which are typically paid through an escrow account.
3How does a 15-year mortgage compare to a 30-year?
A 15-year mortgage has higher monthly payments but much lower total interest cost. You build equity faster and own your home free and clear in half the time. A 30-year mortgage gives you a lower required monthly payment, which improves your cash flow and may help you qualify for a larger loan. The tradeoff is paying significantly more in total interest.
4How does the down payment affect my monthly payment?
A larger down payment reduces your loan amount, which directly lowers your monthly P&I payment. It also reduces the total interest you pay over the life of the loan. If you put down less than 20%, lenders typically require private mortgage insurance (PMI), which adds to your monthly cost. Use our PMI removal calculator to see when you can cancel that insurance.
5What is mortgage amortization?
Amortization is the process of gradually paying off your loan through fixed monthly payments. In the early years, most of each payment goes toward interest because your loan balance is at its highest. Over time, as the balance decreases, a larger share goes toward principal. The entire loan is paid off precisely at the end of the term.
6Can I see a full amortization schedule?
Yes. Click the View Table button in the insights panel to see a month-by-month breakdown of your payment, principal, interest, and remaining balance. You can also export the entire schedule as a CSV file. For a detailed visual breakdown of every payment over the full loan term, visit our amortization schedule page.