Mortgage Calculator
Calculate monthly mortgage payments, total interest, and amortization schedule.
Down payment: $80,000
Monthly Payment
$2,023
Loan: $320,000 · Total paid: $728,142
Total Interest
$408,142
Total Paid
$728,142
Interest Ratio
56.1%
Amortization Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,694 |
| 10 | $6,410 | $17,861 | $271,284 |
| 11 | $6,839 | $17,432 | $264,444 |
| 12 | $7,297 | $16,974 | $257,147 |
| 13 | $7,786 | $16,485 | $249,361 |
| 14 | $8,308 | $15,964 | $241,053 |
| 15 | $8,864 | $15,407 | $232,189 |
| 16 | $9,458 | $14,814 | $222,732 |
| 17 | $10,091 | $14,180 | $212,641 |
| 18 | $10,767 | $13,505 | $201,874 |
| 19 | $11,488 | $12,784 | $190,386 |
| 20 | $12,257 | $12,014 | $178,129 |
| 21 | $13,078 | $11,193 | $165,051 |
| 22 | $13,954 | $10,317 | $151,097 |
| 23 | $14,888 | $9,383 | $136,208 |
| 24 | $15,886 | $8,386 | $120,323 |
| 25 | $16,949 | $7,322 | $103,373 |
| 26 | $18,085 | $6,187 | $85,289 |
| 27 | $19,296 | $4,976 | $65,993 |
| 28 | $20,588 | $3,683 | $45,405 |
| 29 | $21,967 | $2,305 | $23,438 |
| 30 | $23,438 | $833 | $0 |
How This Is Calculated
This mortgage calculator uses the standard fixed-rate amortization formula to determine your monthly payment and total cost over the life of the loan.
Monthly payment formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12).
This calculator assumes a fixed-rate loan with no PMI, property tax, or insurance. The amortization schedule shows how each payment is split between principal and interest, demonstrating how more of your payment goes toward principal over time.
Standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1]. Assumes fixed-rate loan, no PMI, taxes, or insurance.
Frequently Asked Questions
How is the monthly mortgage payment calculated?
The monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate / 12), and n is the total number of payments (years × 12).
Does this include property tax and insurance?
No, this calculator shows principal and interest only. Property tax, homeowners insurance, and PMI are not included. A typical rule of thumb is to add 25-30% to the principal+interest payment to estimate total monthly housing costs.
What is amortization?
Amortization is the process of paying off a loan over time through scheduled payments. In the early years, most of each payment goes toward interest. Over time, the proportion shifts — more goes toward principal, less toward interest.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly less total interest. A 30-year mortgage offers lower monthly payments but costs much more in total interest. Choose based on your cash flow, other financial goals, and risk tolerance.
How much does a 1% change in interest rate affect my payment?
For a $400,000 loan over 30 years, each 1% change in rate affects the monthly payment by roughly $250-$300. Over the life of the loan, that 1% difference can cost over $95,000 in additional interest.
Related Calculators
⚠️ Estimates only. Actual mortgage costs may include PMI, property tax, insurance, and HOA fees. Consult a lender for precise figures.