🏠 Mortgage Calculator

Calculate your monthly mortgage payment, see a full payment breakdown, compare interest rates, track your amortization schedule, and see the impact of extra payments.

Free No Account Extra Payment

Loan Details

%
of price
⚠ Down payment below 20% — PMI applies until you reach 20% equity.

Home price minus down payment.

% / year
years
Monthly Costs (optional)
%/yr
%/yr
%/yr

Applied until loan balance < 80% of home price.

Monthly HOA or condo fee.

Extra Payment (saves interest)

Added to principal each month — reduces term & interest.

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Monthly Payment

Principal, interest, taxes, insurance, PMI, and HOA combined

🍩

Payment Breakdown

Interactive donut chart showing every cost component

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Rate Comparison

See how ±2% in rate changes your payment and total cost

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Extra Payments

Calculate how extra principal reduces term and total interest

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Amortization

Year-by-year balance, equity, principal, and interest breakdown

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Payoff Date

Know exactly when you will own your home outright

📐 Mortgage Payment Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]

P = loan · r = monthly rate · n = total payments (term × 12)

The amortization formula and how each component is derived

Monthly principal and interest uses the standard amortising loan formula. The monthly rate r is the annual rate divided by 12, and n is the term in months. Payment equals the loan amount multiplied by r, multiplied by (1 plus r) to the power n, divided by ((1 plus r) to the power n minus 1). If the rate is zero, the payment is simply the loan divided by n.

The loan amount is the home price minus the down payment, and the amount and percentage fields stay linked.

The remaining components are added on top. Property tax and home insurance are annual figures divided by 12, and either can be entered as a percentage of home price instead. Private mortgage insurance is the annual PMI rate applied to the loan, divided by 12, and is included only when the down payment is below 20 percent. HOA fees are already monthly.

The schedule is then built month by month: interest for the month is the outstanding balance times r, principal is the payment minus that interest plus any extra, and the balance falls by the principal. PMI drops off once the balance reaches 80 percent of the home price.

A 400,000 home with 20 percent down at 6.5 percent

Take a home price of 400,000 with a 20 percent down payment, a 6.5 percent annual rate and a 30-year term.

The down payment is 80,000, so the loan amount is 320,000. The monthly rate is 0.065 divided by 12, which is 0.00541667, and n is 360 months. Applying the formula gives a monthly principal and interest payment of about 2,022.62.

Over the full term you pay 2,022.62 times 360, which is roughly 728,140. Subtracting the 320,000 borrowed leaves about 408,140 in interest, more than the original deposit and price gap combined.

Now add the optional costs. Property tax at 1.2 percent of 400,000 is 4,800 a year, or 400 a month. Insurance at 1,200 a year is 100 a month. There is no PMI because the down payment is 20 percent. The total monthly outlay becomes 2,022.62 plus 400 plus 100, which is 2,522.62.

Enter 200 as an extra monthly principal payment and the schedule recalculates: the balance falls faster each month, the payoff date moves earlier, and the tool reports the months saved and the interest avoided against the standard schedule.

Reading the schedule and the limits of the estimate

The amortization table shows why early payments feel unproductive. In month one of the example above, interest is 320,000 times 0.00541667, which is about 1,733, so only around 290 of the 2,022.62 payment reduces the balance. That ratio reverses over the term, which is why extra principal paid in the first years saves far more interest than the same amount paid in year twenty.

Several things the calculator cannot know will move your real figure. Property taxes are reassessed, insurance premiums change, HOA fees rise, and closing costs, survey fees and points are not included at all. The rate comparison table is there to show sensitivity, not to quote you a rate.

PMI is modelled as dropping off when the balance falls to 80 percent of the original home price. Lenders differ on whether they use the original price or a current appraisal, and on whether removal is automatic, so confirm the rule with your lender.

Treat the output as a planning estimate for comparing scenarios, not as an offer or as financial advice. For a binding figure, ask a lender for a formal illustration.

Frequently Asked Questions

Principal and interest calculated from the loan amount, rate and term, plus any property tax, home insurance, private mortgage insurance and HOA fee you enter. Tax and insurance can be given as an annual amount or as a percentage of home price, and are divided by twelve.
Private mortgage insurance is included only when your down payment is below 20 percent of the home price. In the schedule it is dropped once the outstanding balance falls to 80 percent of the original price. Lender rules on removal vary, so confirm the exact threshold with yours.
Extra money goes entirely to principal, so it reduces the balance that future interest is charged on. The tool recalculates the whole schedule with the extra amount and reports both the earlier payoff date and the interest avoided. Extra payments made early save far more than the same amount paid late.
On a long term, interest accrues on a balance that falls slowly at first. In the worked example, 320,000 borrowed at 6.5 percent over 30 years costs roughly 408,000 in interest. Shortening the term or raising the down payment reduces that figure sharply; the rate comparison table shows the sensitivity.
No. It is a planning estimate and not financial advice. It excludes closing costs, points, survey and legal fees, and it cannot anticipate tax reassessments or insurance increases. Use it to compare scenarios, then ask a lender for a formal illustration before making a decision.