Mortgage Calculator
Calculate your monthly mortgage payments, view amortization schedules, and see how extra payments can save you thousands in interest.
Mortgage Details
20.0% of home price
$300/month
$100/month
Private Mortgage Insurance (PMI) Applied
Down payment is less than 20%. PMI of approximately 0.5% of the loan amount per year has been added to your monthly payment.
Estimated Monthly Payment
$2,170
Principal & Interest
$1,770
Property Tax
$300
Insurance
$100
PMI
$0
Total Loan Amount
$280,000
Total Interest Paid
$357,125
Total Cost of Loan
$637,125
Extra Payments
See how additional monthly payments can save you money and shorten your loan.
Interest Saved
$0
Time Saved
0 years
New Payoff Time
30 years
Amortization Schedule
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|
How to Calculate Mortgage Payments
Understanding Your Monthly Payment
Your monthly mortgage payment is made up of four components, often referred to as PITI:
- P Principal — The portion that goes toward reducing your loan balance.
- I Interest — The cost charged by the lender for borrowing the money.
- T Taxes — Property taxes assessed by your local government, paid monthly into escrow.
- I Insurance — Homeowners insurance to protect your property, plus PMI if applicable.
The Mortgage Payment Formula
The principal and interest portion of your monthly payment is calculated using this standard formula:
- M = Monthly payment (principal & interest)
- P = Loan principal (home price minus down payment)
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (loan term in years x 12)
What Is PMI and When Is It Required?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI protects the lender in case of default. Typical PMI costs range from 0.3% to 1.5% of the original loan amount per year.
Once you reach 20% equity in your home, you can request PMI removal. Under US rules, PMI must end automatically once your balance is scheduled to reach 78% of the home's original value, if your payments are current.
How Extra Payments Save You Money
Making extra payments toward your mortgage principal can dramatically reduce the total interest you pay and shorten your loan term. Even small additional monthly payments compound over time.
For example, on a $280,000 loan at an example 6.5% for 30 years, an extra $200/month saves $101,283 in interest and pays off the mortgage 7 years 3 months early.
How to use the mortgage calculator
- Enter the Home Price.
- Enter the Down Payment as an amount, or press the button next to it to switch to a percentage. Below 20%, PMI is added automatically.
- Pick a Loan Term: 15 yr, 20 yr or 30 yr.
- Type the Interest Rate (Annual) your lender quoted.
- Add yearly Property Tax (Annual) and Home Insurance (Annual), or set both to 0 to see principal and interest only.
- Optionally, enter an Extra Monthly Payment or tap +$100, +$250, +$500 or +$1,000, then press Show Schedule to see the year-by-year amortization.
Results update as you type. All the maths runs in your browser.
Worked example: $350,000 home, 20% down, 6.5% for 30 years
These are the calculator’s default inputs, and 6.5% is an example rate, not a current market quote. The steps below use the same formula as the calculator’s code:
- Loan amount P = $350,000 − $70,000 = $280,000
- Monthly rate r = 6.5% ÷ 12 = 0.00541667; payments n = 30 × 12 = 360
- (1 + r)360 = 6.991798
- M = 280,000 × 0.00541667 × 6.991798 / (6.991798 − 1) = $1,769.79 principal & interest
- Add property tax $3,600 ÷ 12 = $300 and insurance $1,200 ÷ 12 = $100. PMI is $0 because the down payment is exactly 20%.
- Estimated Monthly Payment = $2,169.79, which the calculator rounds to $2,170
Over 360 payments you repay $637,125 in total: the $280,000 you borrowed plus $357,125 in interest. The tax and insurance you pay every month come on top of that total.
Amortization: why early payments are mostly interest
Each month the lender charges interest on the balance you still owe. Whatever is left of the fixed payment then reduces that balance. At the start the balance is large, so interest takes most of the payment. In the example above, payment 1 is $1,516.67 interest and just $253.12 principal. As the balance shrinks, the split slowly reverses. Principal first exceeds interest at payment 233, in year 20.
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | $3,130 | $18,108 | $276,870 |
| 2 | $3,339 | $17,898 | $273,531 |
| 5 | $4,056 | $17,181 | $262,111 |
| 10 | $5,609 | $15,629 | $237,373 |
| 15 | $7,756 | $13,482 | $203,166 |
| 20 | $10,725 | $10,512 | $155,863 |
| 25 | $14,831 | $6,407 | $90,452 |
| 30 | $20,508 | $729 | $0 |
In the first 10 years you pay $212,375, but only $42,627 of it reduces the loan. Halfway through the term, after 15 years, you still owe $203,166, which is about 73% of the original amount. This is why selling or refinancing early leaves most of the debt in place, and why extra principal paid early has such a large effect.
15 vs 20 vs 30 years: what the term really costs
Same $280,000 loan, same example 6.5% rate, so only the term changes:
| Term | Monthly P&I | Total interest | Total paid |
|---|---|---|---|
| 15 years | $2,439 | $159,038 | $439,038 |
| 20 years | $2,088 | $221,025 | $501,025 |
| 30 years | $1,770 | $357,125 | $637,125 |
Choosing 15 years instead of 30 costs about $669 more each month but saves about $198,086 in interest. Choosing 20 years costs about $318 more per month and saves about $136,099. Lenders sometimes price shorter terms at a different rate, so enter the rate you were actually quoted for each term. Our mortgage payment guide covers how to weigh the monthly payment against the total cost.
What extra monthly payments do
The calculator adds your Extra Monthly Payment to every payment from month 1, and all of it goes to principal. A lower balance means less interest next month, so the savings build on each other. Results for the same $280,000, example 6.5%, 30-year loan:
| Extra / month | Interest saved | New payoff time |
|---|---|---|
| +$100 | $60,213 | 25 yrs 9 mo |
| +$200 | $101,283 | 22 yrs 9 mo |
| +$250 | $117,444 | 21 yrs 6 mo |
| +$500 | $173,584 | 17 yrs 1 mo |
| +$1,000 | $230,461 | 12 yrs 3 mo |
An extra $100 a month adds $30,900 of payments over 309 months, yet it saves $60,213 of interest. Before you prepay, check whether your loan has a prepayment penalty, and compare the saving with keeping that money as an emergency fund or investing it. The compound interest calculator shows what the same monthly amount could grow to instead.
Home loan example in rupees (Pakistan and India)
Banks in Pakistan and India usually quote the monthly instalment as an EMI, and for a fixed rate on a monthly reducing balance it is the same amortization maths. To model a Rs 50 lakh loan over 20 years, enter Home Price 6,250,000 (62.5 lakh), Down Payment 1,250,000 (exactly 20%, so no PMI), Loan Term 20 yr, Property Tax 0 and Home Insurance 0. Ignore the $ sign. The rates below are examples, not current SBP, RBI or bank rates:
| Example rate | EMI | Total interest | Total repaid |
|---|---|---|---|
| 9% | Rs 44,986 | Rs 57,96,711 | Rs 1,07,96,711 |
| 12% | Rs 55,054 | Rs 82,13,034 | Rs 1,32,13,034 |
| 15% | Rs 65,839 | Rs 1,08,01,475 | Rs 1,58,01,475 |
At an example 12%, the first EMI of Rs 55,054 is Rs 50,000 interest and only Rs 5,054 principal. Over the first five years you pay Rs 28,90,475 in interest but reduce the loan by just Rs 4,12,784, and after 10 years about 77% of the loan (Rs 38,37,314) is still outstanding. At an example 15%, total interest exceeds twice the amount borrowed. Floating-rate loans reset over time, so rerun the numbers at a higher rate to test whether the EMI would still be affordable. For car or personal loans, or to compare tenures side by side, use the loan EMI calculator and read how to choose the best loan term.
Islamic (Shariah-compliant) home financing, such as diminishing musharakah, is structured as joint ownership with rent and gradual buy-out rather than an interest-bearing loan. The instalment is often worked out with similar maths at a profit rate, but the contract, ownership and charges differ, so ask the bank for its own payment schedule.
Estimates only, not financial advice. The calculator assumes one fixed rate for the whole term and a flat 0.5% PMI. Your lender’s fees, insurance, rounding and rate changes will change the real figures.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
The principal and interest part uses M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the annual rate divided by 12 and n is the number of monthly payments. For a $280,000 loan at an example 6.5% over 30 years that is $1,769.79 a month. This calculator then adds one-twelfth of the annual property tax and home insurance, plus PMI if your down payment is under 20%.
Why is most of my early mortgage payment interest?
Interest each month is charged on the balance still owed, and the balance is largest at the start. On a $280,000 loan at an example 6.5% for 30 years, the first payment of $1,769.79 is $1,516.67 interest and only $253.12 principal. The principal share does not overtake interest until payment 233, in year 20.
Is a 15-year or 30-year mortgage better?
A 15-year term costs more per month but far less in total. At the same example 6.5% on $280,000, the 15-year payment is $2,439 against $1,770 for 30 years, but total interest is $159,038 instead of $357,125. The 30-year loan is easier on monthly cash flow; the 15-year loan saves about $198,000 in interest.
How much do extra mortgage payments save?
In this calculator, extra money is added to every monthly payment and goes straight to principal. On a $280,000 loan at an example 6.5% for 30 years, an extra $200 a month saves $101,283 in interest and pays the loan off 7 years 3 months early. Check first whether your lender charges a prepayment fee.
How does this calculator handle PMI?
If the down payment is below 20% of the home price, it adds PMI of 0.5% of the loan amount per year, divided by 12. For a $350,000 home with 10% down that is $131 a month on a $315,000 loan. The figure stays flat; the calculator does not model PMI being removed later, and real PMI rates vary by lender and credit profile.
Can I use this mortgage calculator for a home loan in Pakistan or India?
Yes. Type the amounts in rupees, ignore the $ sign, set Property Tax and Home Insurance to 0 and use a down payment of at least 20% so no PMI is added. For example, a Rs 50 lakh loan over 20 years at an example 12% gives an EMI of Rs 55,054.
Why is my bank's quote different from this calculator?
Banks may add processing fees, insurance or taxes to the instalment, round differently, or use a floating rate that resets over the loan. This calculator assumes one fixed rate for the whole term and monthly payments. Ask your lender for its repayment schedule and compare it line by line.
Is the data I enter sent anywhere?
No. The calculation runs entirely in your browser with JavaScript, and the calculator code on this page does not send the numbers you type to a server.