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Mortgage Calculator

Calculate your exact monthly mortgage payment — principal and interest, PMI, property tax — with a full amortization breakdown.

🌍 Multi-currency✔ Amortization Formula

🏡 Mortgage Calculator

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Total Monthly Payment
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Principal + Interest + Tax + Insurance
Monthly P&I
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Monthly Tax
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Monthly Insurance
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Loan Amount
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Total Interest Paid
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Total Cost
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Down Payment %
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LTV Ratio
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How Mortgage Payments Are Calculated

Mortgage payments consist of principal (paying back the loan), interest (cost of borrowing), and often escrow payments for property tax and insurance. The principal and interest portion is calculated using the standard loan amortization formula.

📐 Mortgage Payment Formula

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]
M= Monthly payment
P= Principal loan amount
r= Monthly interest rate (annual rate ÷ 12)
n= Total number of payments (years × 12)
📝 Example — $320,000 loan, 7.5% rate, 30 years: r = 7.5% / 12 = 0.00625; n = 360
M = $320,000 × [0.00625 × (1.00625)³⁶⁰] ÷ [(1.00625)³⁶⁰ − 1]
M = $320,000 × 0.007392 = $2,236/month

Amortization — Why You Pay Mostly Interest Early

In the early years of a mortgage, the vast majority of each payment goes to interest, not principal. For a $400,000 30-year mortgage at 7.5%, your first payment of ~$2,797 includes about $2,500 in interest and only $297 in principal. By year 15, the split approaches 50/50. This is why extra principal payments early in the loan save substantial interest.

Frequently Asked Questions

A common guideline is the 28/36 rule: your housing costs should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. Lenders also consider credit score, employment history, and debt-to-income ratio. Most lenders prefer a DTI below 43%.
Amortization is the process of paying off a loan through regular payments over time. Each payment covers the interest accrued since the last payment, with the remainder reducing the principal. Early payments are mostly interest; later payments are mostly principal — even though the payment amount stays fixed.
A 15-year mortgage saves substantial interest (often hundreds of thousands of dollars on large loans) but requires higher monthly payments. A 30-year mortgage has lower payments, providing cash flow flexibility — you can always pay extra principal when you have the funds. The right choice depends on your cash flow needs and financial goals.
⚠️ Disclaimer Estimates for informational purposes only. Not legal or financial advice. Consult a qualified professional.