Mortgage Payment Calculator
Calculate your estimated monthly payment and total loan cost
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Total Monthly Payment (PITI)
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Principal & Interest
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Tax & Insurance
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Total Interest Paid
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Total Loan Cost
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Payment Breakdown
Amortization Schedule
Year-by-year breakdown of your loan payoff
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
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How to Use Your Mortgage Calculation Results
Your monthly mortgage payment is one of the most important numbers in your financial life. Understanding what drives it — and how to optimize it — can save you tens of thousands of dollars over the life of your loan.
The four components of a full mortgage payment are known as PITI: Principal, Interest, Taxes, and Insurance. Most first-time buyers focus only on principal and interest, but property taxes and insurance can add hundreds of dollars per month to your payment.
- Your interest rate matters more than anything. A difference of just 0.5% on a $400,000 loan adds up to over $40,000 in extra interest over 30 years. Shopping multiple lenders and improving your credit score before applying are the two most powerful ways to lower your rate.
- A 20% down payment eliminates PMI. If your down payment is below 20%, lenders typically require Private Mortgage Insurance (PMI), which costs 0.5–1.5% of the loan amount annually. On a $320,000 loan, that is $1,600–$4,800 per year — purely a cost with no benefit to you.
- Making one extra payment per year shortens a 30-year mortgage by approximately 4–5 years. If your monthly payment is $2,100, making a 13th payment annually saves roughly $30,000–$50,000 in interest depending on your rate.
- Early years are interest-heavy. In the first year of a 30-year mortgage, roughly 80% of each payment goes toward interest. By year 25, that flips and most goes to principal. This is why refinancing early can be very effective — you reset to a lower rate without throwing away too many principal payments.
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The amortization schedule above shows exactly how each payment is split between principal and interest every year of your loan. Notice how the balance decreases slowly in the early years — this is normal and expected in a standard amortizing loan structure.
Frequently Asked Questions
Monthly mortgage payments are 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 ÷ 12), and n is the total number of monthly payments (years × 12). This formula ensures your loan is fully paid off by the last payment while keeping each payment equal throughout the loan term.
A competitive mortgage rate in 2026 for a 30-year fixed loan typically falls between 6% and 7.5% for well-qualified borrowers (credit score 740+). Rates vary by lender, loan type, down payment, and economic conditions. Always get quotes from at least three lenders — the difference between the best and worst offer on a $400,000 loan can be $100+ per month.
A widely used guideline is the 28/36 rule: your total housing costs (mortgage P&I, taxes, insurance) should not exceed 28% of your gross monthly income, and your total debt payments should not exceed 36%. For a household earning $8,000/month gross, this means a maximum housing payment of $2,240/month. However, lenders may approve loans up to a 43% debt-to-income ratio.
A 15-year mortgage typically comes with a lower interest rate (0.5–0.75% less) and you pay roughly 50% less total interest compared to a 30-year loan. However, monthly payments are 30–40% higher. Choose 15 years if the higher payment is comfortably within your budget; choose 30 years if you need lower monthly payments or want flexibility to invest the difference in higher-returning assets.
An amortization schedule is a complete table showing every payment over the life of a loan, broken into principal and interest components. In the early years of a mortgage, most of each payment pays interest. In later years, more goes toward principal. This table helps you see exactly how much equity you build each year and how much total interest you will pay over the entire loan term.