Mortgage Calculator

Your principal-and-interest payment uses the standard amortization formula: M = P × i × (1+i)ⁿ ÷ ((1+i)ⁿ − 1), where P is the loan amount, i is your monthly interest rate (annual rate ÷ 12), and n is the number of payments (years × 12). On a $320,000 loan at 6% over 30 years that's about $1,919 a month. But your real payment is bigger: add property tax, homeowners insurance, PMI (if you put down less than 20%) and any HOA dues. The calculator above does all of that — the full PITI payment, not just principal and interest.

It depends on your down payment, rate and term. With 20% down ($80,000) you'd borrow $320,000; at a 6.5% rate over 30 years that's roughly $2,023 in principal and interest, or around $2,400–$2,600 a month once you add typical property tax and insurance. Drop to 30 years at a lower rate and it falls; choose a 15-year term and the monthly payment rises but you pay far less interest. Enter $400,000 above with your own rate and down payment to see your exact number.

Private mortgage insurance (PMI) is an extra monthly charge — typically 0.3% to 1.5% of the loan per year — that lenders require when your down payment is under 20%. It protects the lender, not you. The simplest way to avoid it is to put 20% down. If you already have PMI, it doesn't last forever: under the federal Homeowners Protection Act your servicer must automatically cancel it once your balance reaches 78% of the original value, and you can request cancellation earlier at 80% (20% equity). The calculator shows your PMI cost and roughly when it ends.

A 15-year mortgage has a higher monthly payment but a lower interest rate and dramatically less total interest — often less than half what a 30-year costs over the life of the loan. A 30-year mortgage has a smaller, more affordable monthly payment, which frees up cash flow but means you pay much more interest overall and build equity more slowly. The right choice depends on whether you value lower monthly cost (30-year) or long-term savings and faster payoff (15-year). Toggle the term in the calculator to compare both instantly.

A common guideline is the 28/36 rule: keep your housing payment under about 28% of gross monthly income, and total debt under 36%. If a $400,000 home means a roughly $2,500 monthly payment, you'd want gross income of about $8,900 a month — around $107,000 a year — to stay near 28%, more if you carry other debts like car or student loans. Lenders also look at your credit score, down payment and debt-to-income ratio. Use the calculator to find your payment, then check it against roughly a quarter of your gross monthly pay.

Because interest is charged on your outstanding balance, which is largest at the start. In the first years of a 30-year loan the majority of each payment goes to interest and only a little to principal; the ratio gradually flips, and in the final years almost all of it goes to principal. That's why paying even a little extra early on is so powerful — it cuts the balance that all future interest is calculated on. The balance chart and amortization schedule above show exactly how your split shifts over time.