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
$1,769
Principal & Interest
$1,769
Property Tax
$300
Insurance
$100
PMI
$0
Total Loan Amount
$280,000
Total Interest Paid
$356,681
Total Cost of Loan
$636,681
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. By law, PMI is automatically cancelled when you reach 22% equity based on the original appraised value.
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 6.5% for 30 years, an extra $200/month could save you over $80,000 in interest and pay off your mortgage nearly 7 years early.
Frequently Asked Questions
How accurate is this mortgage calculator?
This calculator uses the standard amortization formula used by banks and financial institutions. The results are accurate estimates based on your inputs. Actual payments may vary slightly depending on your lender's specific terms, rounding methods, and escrow requirements.
What is a good interest rate for a mortgage?
Interest rates vary based on market conditions, your credit score, loan type, and down payment amount. As of 2024-2025, rates for 30-year fixed mortgages have ranged between 6% and 7.5%. Check with multiple lenders to find the best rate for your situation.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on total interest. A 30-year mortgage offers lower monthly payments and more flexibility. Use this calculator to compare both options and choose what fits your budget and financial goals.
How much should I put down on a house?
A 20% down payment is ideal because it eliminates PMI and reduces your monthly payments. However, many loan programs allow as little as 3-5% down. Use the calculator to see how different down payment amounts affect your monthly costs.
Is this tool free to use?
Yes, this mortgage calculator is completely free with no limitations or registration required. All calculations run in your browser and no data is stored or shared.