Mortgage Calculator
TrendingCalculate your monthly payment, total interest cost, and view the complete amortization schedule.
Cost breakdown
Interest is 58% of total repayment cost
Monthly Payment
$2,128.97
Loan Amount
$320,000.00
Total Interest
$446,428.47
Total Cost
$766,428.47
The Mortgage Formula
Monthly payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual ÷ 12), and n is the total number of months.
In early payments, most goes toward interest. Over time the ratio shifts — this is amortization. A 30-year, $400,000.00 home at 7% rate will accrue $446,428.47 in interest — nearly 58% of what you pay back.
Frequently Asked Questions
What does a mortgage calculator tell me?
It shows your estimated monthly payment (principal + interest), total interest paid over the life of the loan, and the full amortization schedule — how much of each payment goes toward principal vs interest each year.
Does the calculator include property taxes and insurance?
This calculator focuses on principal and interest (P&I). Your actual monthly payment will be higher when you add property tax (typically 1–2% of home value annually) and homeowners insurance. Add roughly 25–30% to the P&I figure for a realistic total.
What is a good interest rate for a mortgage?
Rates vary by country, credit score, loan type, and market conditions. In the US, historical average 30-year fixed rates have ranged from 3–8%. The best rates go to borrowers with 760+ credit scores and 20%+ down payments.
How does the down payment affect my monthly payment?
A larger down payment reduces the loan principal, which directly lowers your monthly payment and total interest paid. A 20% down payment also eliminates the need for Private Mortgage Insurance (PMI), saving hundreds per month.
What is amortization?
Amortization is the process of paying off the loan through regular monthly payments. In the early years, most of each payment goes toward interest. Over time, the share going to principal increases — this is called a negatively declining interest schedule.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage saves significant interest (often 40–50% less total interest) but requires higher monthly payments. A 30-year mortgage has lower payments and more cash flow flexibility. If you can comfortably afford the 15-year payment, it usually wins mathematically.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. It typically costs 0.5–1.5% of the loan amount per year and can be removed once you reach 20% equity.
Can I pay off my mortgage early?
Yes — making extra principal payments reduces your loan balance faster, cutting both your loan term and total interest paid. Even one extra mortgage payment per year can shave 5–7 years off a 30-year loan.
Related Calculators