Plan with confidence
Understand the true cost of your mortgage.
Explore your monthly payment, lifetime interest, and every payment along the way. Adjust any number and the plan updates instantly.
Your estimate
Monthly payment
Excludes property taxes, homeowners insurance, HOA fees, and mortgage insurance.
- Total paid
- $773,785
- Payoff date
- August 2056
- Number of payments
- 360
- Interest saved
- $0
Payment by payment
Amortization schedule
See how each payment is divided between principal and interest, and how your remaining balance falls over time.
| Year | Principal | Interest | Total paid | Remaining balance |
|---|
Plain-language guide
Every variable, explained.
Mortgage language can make a straightforward calculation feel complicated. Here is what each input means and how it changes your result.
01Home price
The agreed purchase price of the property before subtracting your down payment. It is not the same as your loan amount. Closing costs are usually paid separately and are not included here.
02Down payment
Money you pay upfront. A larger down payment reduces the amount borrowed and the interest paid over time. Conventional loans with less than 20% down may require private mortgage insurance.
03Loan principal
The amount you borrow: home price minus down payment. Each monthly payment reduces this balance. Interest is calculated from the unpaid principal.
04Interest rate
The annual percentage charged by the lender for borrowing. This calculator assumes a fixed rate for the full term and converts the annual rate into a monthly rate by dividing it by 12.
05Loan term
The time allowed to repay the loan. A shorter term usually means a higher monthly payment but much less total interest. A longer term lowers the payment while increasing lifetime interest.
06First payment date
The date your regular payments begin. It sets the dates shown in the schedule and your estimated payoff date. It does not change the payment amount in this calculation.
07Extra monthly payment
An optional amount paid directly toward principal each month. It can shorten your payoff time and reduce total interest. Confirm that your lender applies extra payments to principal and does not charge a prepayment penalty.
08Principal and interest payment
The fixed base payment calculated from principal, monthly interest rate, and number of payments. Early payments contain more interest. As the balance falls, more of the same payment goes toward principal.
09Total interest and total paid
Total interest is the cost of borrowing over the life of the loan. Total paid is principal plus that interest. These figures exclude your down payment and ongoing housing costs such as taxes and insurance.
10Remaining balance
The principal still owed after each period. It reaches zero after the final payment. This is not necessarily the same as a lender's payoff quote, which may include daily interest and fees.
Behind the number
How the payment is calculated
For a fixed-rate loan, the standard amortization formula keeps principal and interest payments level while their proportions change each month.
M monthly payment P principal r monthly rate n number of payments
Common questions
Mortgage amortization FAQ
Quick, straightforward answers for the questions that matter while comparing a home loan.
What is a mortgage amortization schedule?
An amortization schedule is a payment-by-payment table that shows how much of each mortgage payment goes toward principal, how much goes toward interest, and the balance left after each payment.
How is a monthly mortgage payment calculated?
For a fixed-rate mortgage, the payment is calculated from the amount borrowed, the monthly interest rate, and the total number of monthly payments. This calculator estimates principal and interest only.
Do extra mortgage payments reduce interest?
Yes. When an extra payment is applied directly to principal, your balance falls faster. That can shorten the loan term and reduce the total interest paid. Check your lender's policy before making extra payments.
Does this calculator include taxes and insurance?
No. Property taxes, homeowners insurance, HOA fees, private mortgage insurance, and lender fees differ by location and loan. Add those costs separately when planning your full monthly housing budget.
What is the difference between principal and interest?
Principal is the amount borrowed and still owed. Interest is the lender's charge for borrowing it. Early in a fixed-rate loan, more of each payment goes toward interest. Later, more goes toward reducing the principal.
How does the loan term affect a mortgage payment?
A shorter loan term usually brings a higher monthly payment but less total interest. A longer term spreads the balance over more months, which can lower the payment while increasing lifetime interest.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the loan principal. APR, or annual percentage rate, also reflects certain lender fees and costs. This calculator uses the stated interest rate, not APR.
How much should I put down on a house?
The right down payment depends on your finances, loan program, and goals. A larger down payment reduces the loan amount and may avoid private mortgage insurance, while some loan programs allow smaller down payments.
Can I pay off my mortgage early?
Many mortgages allow early payoff or extra principal payments, but check your loan agreement for prepayment penalties and ask how the lender applies additional money before making a larger payment.
Why does my first mortgage payment mostly go to interest?
Interest is calculated from the remaining balance. Since your balance is highest at the beginning of the loan, so is the interest portion. As principal is paid down, more of each regular payment goes toward the balance.
How accurate is this mortgage calculator?
This calculator gives a useful fixed-rate principal and interest estimate. Your lender's final figures can differ because of payment timing, daily interest, fees, escrow costs, insurance, taxes, and rounding.
This calculator provides estimates for educational planning only. It is not a loan offer or financial advice. Actual payments and costs depend on your lender, loan terms, taxes, insurance, fees, and rounding practices.