Financial Calculators
Mortgage Calculator - Monthly Payment & Amortization Schedule
Calculate your monthly mortgage payment including principal, interest, property tax, home insurance, PMI, and HOA. View the full amortization schedule. Free, private, runs in your browser.
Loan details
Estimated monthly payment
$2,628.97
Principal & interest: $2,128.97 · LTV: 80.0%
Monthly breakdown
Loan summary
Principal vs. interest
| Segment | Value | Percentage |
|---|---|---|
| Principal | $320,000.00 | 41.8% |
| Total interest | $446,428.47 | 58.2% |
Balance over time
How to use the mortgage calculator
Enter the home price, down payment, annual interest rate, and loan term. The estimated monthly payment updates instantly. Click "Add property tax, insurance, PMI & HOA" to see your full PITI payment. Expand the amortization schedule to see a year-by-year or month-by-month breakdown of every payment.
How a mortgage payment is calculated
The principal and interest (P&I) portion uses the standard amortization formula:
M = P × r(1+r)ⁿ / ((1+r)ⁿ − 1)
where M is the monthly P&I payment, P is the loan principal (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. When the interest rate is 0%, the payment simplifies to P ÷ n.
What goes into a monthly mortgage payment (PITI)
Most lenders collect your full PITI payment each month and place the non-P&I portions into an escrow account:
- Principal: reduces your loan balance
- Interest: the cost of borrowing
- Taxes: property taxes (typically paid annually from escrow)
- Insurance: homeowners insurance (typically paid annually from escrow)
- PMI: required when your down payment is less than 20%
How extra principal payments reduce your loan
Every dollar of extra principal you pay goes directly toward reducing your loan balance, which means you accrue less interest the following month. A consistent extra payment of even $100–$200 per month can shave years off a 30-year mortgage and save tens of thousands of dollars in interest. Use the "Extra principal payment" field to model the savings.
Common mortgage payment examples
| Home price | Down payment | Rate | Term | Monthly P&I |
|---|---|---|---|---|
| $300,000 | 20% ($60k) | 7% | 30 yr | $1,596.73 |
| $400,000 | 20% ($80k) | 6.5% | 30 yr | $2,022.62 |
| $500,000 | 20% ($100k) | 7% | 15 yr | $3,592.64 |
| $250,000 | 10% ($25k) | 7.5% | 30 yr | $1,748.04 |
ARM vs fixed-rate mortgages
- Fixed-rate: the interest rate never changes for the life of the loan. Monthly P&I payments are predictable but fixed-rate loans typically start at a higher rate than comparable ARMs.
- Adjustable-rate (ARM): the rate is fixed for an initial period (3, 5, 7, or 10 years) then adjusts annually based on a benchmark index (often SOFR). A 5/1 ARM is fixed for 5 years, then adjusts every 1 year. ARMs have rate caps - for example, a 2/2/5 cap means the rate can increase at most 2% on the first adjustment, 2% on each subsequent adjustment, and 5% total over the life of the loan.
ARMs can save money if you plan to sell or refinance before the fixed period ends. They carry risk if you stay in the home past the fixed period and rates have risen significantly.
Refinance break-even
When refinancing, you typically pay closing costs of 2–5% of the loan amount. The break-even period tells you how long you must stay in the home to recoup those costs:
Break-even months = Closing costs ÷ Monthly savings from lower paymentFor example, $5,000 in closing costs and $150/month in savings -> break-even in ~33 months. If you plan to sell before then, refinancing likely isn't worthwhile.