How to use
Enter the home price, your down payment as a percentage, the interest rate and the loan term in years, then pick the repayment type. You’ll see the loan amount, the monthly payment, total interest and a year-by-year summary of what goes to principal and to interest. To see the full monthly cost (PITI), enter yearly property tax, homeowners insurance and HOA fees: they’re added to the loan payment.
The chart shows how each year’s payments split between principal and interest. If you plan to pay extra, add extra payments — one-time or recurring, shortening the term or lowering the payment — and the schedule and interest saved are recalculated. For a side-by-side comparison, use the extra payment calculator.
How the payment is calculated
With fixed payments (a standard amortizing mortgage) every monthly payment is the same:
payment = P × r / (1 − (1 + r)^−n), where P is the loan amount, r is the monthly rate (annual rate / 12 / 100) and n is the number of months.
With equal principal, the same amount of principal is repaid each month and interest is charged on the remaining balance, so payments start higher and fall over time, and total interest is lower.
Example
A $400,000 home with 20% down ($80,000) — a $320,000 loan at 6.5%:
- 30 years: $2,022.62 a month, about $408,141 in total interest.
- 15 years: $2,787.54 a month, about $181,758 in total interest.
The rate in the example is only an illustration — use the rate from your lender’s quote.
FAQ
Does the payment include property taxes, insurance or PMI? No, it’s principal and interest only (P&I). Your actual monthly housing cost will be higher if taxes, homeowners insurance, HOA fees or PMI are added.
How can I pay less interest? A bigger down payment, a shorter term and extra payments toward principal all reduce total interest. Try different values in the calculator to compare.
What’s the difference from the loan calculator? This one works out the loan amount from the home price and down payment and takes the term in years. For other loans, use the loan calculator.
Why is my lender’s figure different? Lenders may count interest by the actual number of days, include escrow in the payment or use a different first payment date. Treat this as an estimate, not an offer.