Mortgage Payment Calculator
Estimate your monthly mortgage payment using your loan amount, annual interest rate, and loan term. This calculator uses the standard amortization formula to show your principal & interest payment, total interest, and total cost over the life of the loan.
How it works
This calculator uses the standard fixed-rate amortization formula: M = P · r / (1 − (1 + r)^−n), where M is the monthly payment, 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 (years × 12).
Each payment covers both interest and a portion of the principal. Early in the loan most of the payment goes toward interest; over time more goes toward principal. The result here shows only principal and interest — your actual bill may also include property taxes, homeowners insurance, and PMI.
Tips
Even a small change in interest rate can significantly affect your total interest paid — try comparing rates 0.25% apart to see the impact.
Making extra principal payments or choosing a shorter term reduces total interest dramatically, though it raises the monthly payment. Always budget for taxes and insurance on top of the P&I figure shown here.
FAQ
Does this include taxes and insurance?
No. This calculator shows only principal and interest (P&I). Your full monthly payment may also include property taxes, homeowners insurance, HOA dues, and PMI, which can add hundreds of dollars.
Why is so much of my early payment interest?
With amortization, interest is charged on the remaining balance, which is highest at the start. As you pay down the principal, the interest portion shrinks and more goes toward the balance each month.
What if my interest rate is adjustable?
This tool assumes a fixed rate. For an adjustable-rate mortgage (ARM), the payment will change when the rate adjusts, so use it only as an estimate for the initial fixed period.