Mortgage Calculator
Calculate monthly mortgage payments
Monthly Payment
$1,916.96
Principal
$217
Interest
$1,300
Tax
$300
Insurance
$100
Loan amount: $240,000 · Total paid over 30 years: $690,107
Quick Facts
- •30-year vs 15-year: lower payment but ~2x total interest
- •20% down payment avoids PMI
- •The 28/36 rule: max 28% of income on housing
Mortgage Payments Explained
Your monthly mortgage payment typically includes principal, interest, property taxes, and insurance (PITI). A 30-year fixed-rate mortgage has lower monthly payments but higher total interest than a 15-year mortgage. The 28/36 rule suggests housing costs shouldn't exceed 28% of gross income.
Understanding the mortgage calculator
A mortgage payment is fixed, but what it buys changes every month. Early payments are almost entirely interest, and the balance only falls slowly at first. Understanding the amortisation curve is what makes overpayment decisions obvious.
Worked examples
Monthly payment on a 300,000 loan at 6.5 percent over 30 years
- 1Monthly rate r = 0.065 ÷ 12 = 0.0054167.
- 2Number of payments n = 30 × 12 = 360.
- 3Payment = P × r ÷ (1 - (1 + r)^-n).
- 4300,000 × 0.0054167 = 1,625.00.
- 5(1 + r)^-360 = 0.14297, so the divisor is 0.85703.
- 61,625.00 ÷ 0.85703 = 1,896.20.
Principal and interest of about 1,896 per month, with 382,600 of total interest over the full term.
What an extra 200 per month does
- 1Paying 2,096 instead of 1,896 clears the same loan in about 24 years rather than 30.
- 2Total interest falls from roughly 382,600 to about 287,000.
- 3The saving comes from removing the most expensive months at the end of the schedule.
An extra 200 per month saves roughly 95,000 in interest and six years of payments.
Monthly principal and interest per 100,000 borrowed
Multiply by the number of hundred thousands you are borrowing. Taxes, insurance, and HOA fees are extra.
| Rate | 15 years | 20 years | 30 years |
|---|---|---|---|
| 4.0% | 739.69 | 605.98 | 477.42 |
| 4.5% | 764.99 | 632.65 | 506.69 |
| 5.0% | 790.79 | 659.96 | 536.82 |
| 5.5% | 817.08 | 687.89 | 567.79 |
| 6.0% | 843.86 | 716.43 | 599.55 |
| 6.5% | 871.11 | 745.57 | 632.07 |
| 7.0% | 898.83 | 775.30 | 665.30 |
| 7.5% | 927.01 | 805.59 | 699.21 |
Where the first year of payments goes
Based on 300,000 at 6.5 percent over 30 years.
| Payment number | Interest | Principal | Balance |
|---|---|---|---|
| 1 | 1,625.00 | 271.20 | 299,728.80 |
| 12 | 1,606.75 | 289.45 | 296,485.00 |
| 60 | 1,528.90 | 367.30 | 281,940.00 |
| 180 | 1,190.00 | 706.20 | 213,900.00 |
| 360 | 10.22 | 1,885.98 | 0.00 |
Figures are rounded. The split reaches 50/50 only around year 19 on this loan.
Frequently asked questions
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This calculator is for educational and reference purposes only. Always verify critical calculations independently.