A mortgage calculator shows what a home loan really costs each month. Enter the home price, down payment, interest rate and loan term to get the monthly principal-and-interest payment, the total interest paid over the life of the loan, and a year-by-year amortization schedule showing how each payment splits between interest and principal.
Loan details
Totals
Yearly amortization schedule
| Year | Principal paid | Interest paid | Balance |
|---|
Principal and interest only. Property tax, insurance and HOA would be added by your lender.
How is a monthly mortgage payment calculated?
With the amortization formula: M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r the monthly rate and n the number of payments. A $280,000 loan at 6.5% for 30 years gives about $1,770/month in principal and interest.
Early payments are mostly interest; the principal share grows over time. The yearly schedule above shows this shift clearly.
How much interest will I pay over the life of the loan?
Multiply the monthly payment by the number of payments and subtract the loan amount. On a 30-year loan, total interest often approaches or exceeds half the amount borrowed.
Shorter terms and larger down payments cut total interest dramatically: compare 15 vs 30 years above.
Does this include property tax and insurance?
No. This is principal and interest (P&I) only. Lenders usually add property tax, homeowners insurance and possibly HOA dues into an escrowed monthly payment.
Add your local tax and insurance estimates to the P&I figure for the true monthly housing cost.
Frequently asked questions
What is amortization?
Amortization is the process of paying off a loan with fixed monthly payments, where each payment is split between interest and principal. The schedule above shows it year by year.
Why is a 15-year mortgage cheaper overall?
Two reasons: the rate is usually lower, and you pay interest for half as many years. Monthly payments are higher, but total interest can be less than half of a 30-year loan.
How does a bigger down payment help?
It shrinks the loan amount, which lowers the monthly payment and total interest. It can also avoid private mortgage insurance (PMI), typically required below 20% down.
What if the interest rate is 0%?
The calculator handles it: the monthly payment is simply the loan amount divided by the number of payments. This is rare outside special programs.
Is my financial data uploaded anywhere?
No. All mortgage math runs in your browser. Nothing you enter is sent to any server.