Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and explore your full amortization schedule.
Loan Amount: $280,000.00
Monthly Payment
$1,769.79
Total Interest Paid
$357,124.57
Total Cost of Loan
$637,124.57
Principal vs Interest Per Year
Amortization Schedule
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $3,129.63 | $18,107.85 | $276,870.37 |
| 2 | $3,339.23 | $17,898.26 | $273,531.14 |
| 3 | $3,562.86 | $17,674.62 | $269,968.28 |
| 4 | $3,801.47 | $17,436.01 | $266,166.80 |
| 5 | $4,056.07 | $17,181.42 | $262,110.74 |
| 6 | $4,327.71 | $16,909.78 | $257,783.03 |
| 7 | $4,617.54 | $16,619.94 | $253,165.49 |
| 8 | $4,926.79 | $16,310.70 | $248,238.70 |
| 9 | $5,256.74 | $15,980.74 | $242,981.95 |
| 10 | $5,608.80 | $15,628.69 | $237,373.15 |
| 11 | $5,984.43 | $15,253.06 | $231,388.72 |
| 12 | $6,385.22 | $14,852.27 | $225,003.51 |
| 13 | $6,812.85 | $14,424.64 | $218,190.66 |
| 14 | $7,269.12 | $13,968.37 | $210,921.54 |
| 15 | $7,755.94 | $13,481.54 | $203,165.60 |
| 16 | $8,275.37 | $12,962.11 | $194,890.22 |
| 17 | $8,829.59 | $12,407.89 | $186,060.63 |
| 18 | $9,420.92 | $11,816.56 | $176,639.71 |
| 19 | $10,051.86 | $11,185.62 | $166,587.84 |
| 20 | $10,725.05 | $10,512.43 | $155,862.79 |
| 21 | $11,443.33 | $9,794.16 | $144,419.46 |
| 22 | $12,209.71 | $9,027.77 | $132,209.75 |
| 23 | $13,027.42 | $8,210.07 | $119,182.33 |
| 24 | $13,899.89 | $7,337.60 | $105,282.44 |
| 25 | $14,830.79 | $6,406.70 | $90,451.65 |
| 26 | $15,824.04 | $5,413.45 | $74,627.62 |
| 27 | $16,883.80 | $4,353.69 | $57,743.82 |
| 28 | $18,014.54 | $3,222.95 | $39,729.28 |
| 29 | $19,221.01 | $2,016.48 | $20,508.27 |
| 30 | $20,508.27 | $729.21 | $0.00 |
Understanding Mortgage Payments
A mortgage is a loan used to purchase a home, and the monthly payment is determined by the loan amount, interest rate, and loan term. Understanding how these factors interact helps you make smarter home-buying decisions and potentially save thousands of dollars over the life of your loan.
How Mortgage Payments Are Calculated
Monthly mortgage payments are calculated using a standard amortization formula that factors in the principal balance, annual interest rate, and total number of payments. In the early years, a larger portion of each payment goes toward interest. As you pay down the principal, the interest portion decreases and more of each payment reduces the balance.
Fixed-Rate vs. Adjustable-Rate Mortgages
Fixed-rate mortgages keep the same interest rate for the entire loan term, offering predictable payments. Adjustable-rate mortgages (ARMs) start with a lower rate that can change periodically based on market conditions. This calculator models fixed-rate mortgages, which are the most common choice for homebuyers.
The Impact of Down Payment Size
A larger down payment reduces your loan amount, resulting in lower monthly payments and less total interest. Putting down at least 20% of the home price typically allows you to avoid private mortgage insurance (PMI), an additional monthly cost that protects the lender but adds to your expenses.
Reading the Amortization Schedule
The amortization schedule shows a year-by-year breakdown of how your payments are split between principal and interest. This table helps you understand when you will reach key equity milestones and how much interest you will pay over the full loan term.
Frequently Asked Questions
What is included in a mortgage payment?
A basic mortgage payment covers principal and interest. However, many lenders also require escrow payments for property taxes and homeowners insurance, often referred to as PITI (principal, interest, taxes, and insurance). This calculator focuses on the principal and interest portion.
How much house can I afford?
A common guideline is to keep your total monthly housing costs below 28% of your gross monthly income. Use this calculator to experiment with different home prices and down payments to find a comfortable monthly payment within your budget.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but a lower interest rate and substantially less total interest paid. A 30-year mortgage offers lower monthly payments and more flexibility. Use the loan term dropdown above to compare both options side by side.