Mortgage Calculator
Calculate your monthly mortgage payment, total interest paid, and view a complete amortization schedule.
Monthly Payment (P&I)
$2,023
Total Monthly
$2,473
incl. tax & ins.
Loan Amount
$320,000
Total Interest
$408,142
Total Cost
$808,142
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Month 1 | $2,023 | $289 | $1,733 | $319,711 |
| Month 2 | $2,023 | $291 | $1,732 | $319,420 |
| Month 3 | $2,023 | $292 | $1,730 | $319,127 |
| Month 4 | $2,023 | $294 | $1,729 | $318,833 |
| Month 5 | $2,023 | $296 | $1,727 | $318,538 |
| Month 6 | $2,023 | $297 | $1,725 | $318,241 |
| Month 7 | $2,023 | $299 | $1,724 | $317,942 |
| Month 8 | $2,023 | $300 | $1,722 | $317,641 |
| Month 9 | $2,023 | $302 | $1,721 | $317,339 |
| Month 10 | $2,023 | $304 | $1,719 | $317,036 |
| Month 11 | $2,023 | $305 | $1,717 | $316,730 |
| Month 12 | $2,023 | $307 | $1,716 | $316,423 |
| Year 2 | $2,023 | $328 | $1,695 | $312,607 |
| Year 3 | $2,023 | $349 | $1,673 | $308,535 |
| Year 4 | $2,023 | $373 | $1,650 | $304,191 |
| Year 5 | $2,023 | $398 | $1,625 | $299,555 |
| Year 6 | $2,023 | $425 | $1,598 | $294,609 |
| Year 7 | $2,023 | $453 | $1,570 | $289,332 |
| Year 8 | $2,023 | $483 | $1,539 | $283,701 |
| Year 9 | $2,023 | $516 | $1,507 | $277,694 |
| Year 10 | $2,023 | $550 | $1,472 | $271,284 |
| Year 11 | $2,023 | $587 | $1,436 | $264,444 |
| Year 12 | $2,023 | $626 | $1,396 | $257,147 |
| Year 13 | $2,023 | $668 | $1,354 | $249,361 |
| Year 14 | $2,023 | $713 | $1,310 | $241,053 |
| Year 15 | $2,023 | $761 | $1,262 | $232,189 |
| Year 16 | $2,023 | $812 | $1,211 | $222,732 |
| Year 17 | $2,023 | $866 | $1,156 | $212,641 |
| Year 18 | $2,023 | $924 | $1,098 | $201,874 |
| Year 19 | $2,023 | $986 | $1,037 | $190,386 |
| Year 20 | $2,023 | $1,052 | $971 | $178,129 |
| Year 21 | $2,023 | $1,123 | $900 | $165,051 |
| Year 22 | $2,023 | $1,198 | $825 | $151,097 |
| Year 23 | $2,023 | $1,278 | $745 | $136,208 |
| Year 24 | $2,023 | $1,363 | $659 | $120,323 |
| Year 25 | $2,023 | $1,455 | $568 | $103,373 |
| Year 26 | $2,023 | $1,552 | $470 | $85,289 |
| Year 27 | $2,023 | $1,656 | $366 | $65,993 |
| Year 28 | $2,023 | $1,767 | $256 | $45,405 |
| Year 29 | $2,023 | $1,885 | $137 | $23,438 |
| Year 30 | $2,023 | $2,012 | $11 | $0 |
About This Calculator
A mortgage is a long-term loan used to purchase real estate, where the property itself serves as collateral. Understanding how mortgage payments are calculated helps you make informed decisions about home buying, refinancing, and how extra payments can save you thousands in interest over the life of the loan.
How It Works
Mortgage payments are structured as an amortizing loan — each monthly payment covers both interest and principal. Early in the loan, most of your payment goes toward interest. Over time, as the principal decreases, more of each payment reduces the balance. This is why paying even a small amount extra each month can dramatically reduce your total interest paid and shorten your loan term.
The Formula
Worked Example
On a $300,000 mortgage at 6.5% for 30 years, your monthly payment would be approximately $1,896. Over 30 years, you would pay $382,560 in interest — more than the original loan amount. Paying an extra $200/month would save over $70,000 in interest and pay off the loan 6 years early.
Tips & Best Practices
- •Get pre-approved before house hunting to understand your true budget.
- •Compare at least 3 lenders — even a 0.25% rate difference saves thousands over 30 years.
- •Consider making one extra payment per year to significantly reduce your loan term.
- •Keep your total housing costs (PITI) below 28% of gross monthly income.
Frequently Asked Questions
What is included in a mortgage payment?
Your monthly payment typically includes principal, interest, property taxes (escrowed), and homeowners insurance (PITI). PMI may also be included if your down payment is less than 20%.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly lower total interest. A 30-year mortgage offers lower payments and flexibility. Choose based on your cash flow needs and financial goals.
What is PMI and when can I remove it?
Private Mortgage Insurance protects the lender if you default. It is required when your down payment is less than 20%. You can request removal once you reach 20% equity in your home.
How does refinancing work?
Refinancing replaces your existing mortgage with a new one, ideally at a lower rate. Calculate break-even point by dividing closing costs by monthly savings to determine if refinancing makes financial sense.
Common Mistakes to Avoid
Only looking at the monthly payment, not the total cost of the loan — a lower monthly payment often means paying far more in interest over the full term.
Forgetting to include property taxes, homeowner's insurance, and PMI in your monthly housing budget — these can add 20–40% to your base mortgage payment.
Not shopping around for mortgage rates — even a 0.5% rate difference on a 30-year mortgage can save or cost tens of thousands of dollars.
Stretching to the maximum loan amount the bank approves — lenders approve based on risk, not your comfort level. Aim to keep housing costs under 28% of gross income.
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What to Do Next
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