HomeLoan Pro

Mortgage Calculator

Estimate your monthly payment with principal, interest, property taxes, and home insurance — then see the full amortization schedule.

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Full amortization

Home price

Down payment (20.0%)

Loan term

Interest rate (APR)

Property tax (annual)

Home insurance (annual)

Loan amount$336,000

Total interest paid over 30 years$428,549

Interest vs. principal over time

Early payments are mostly interest — the mix flips as the balance shrinks.

Pay it off faster

Add extra to your monthly payment.

Extra per month: $0

What you entered

Loan amount: $336,000Interest rate: 6.5% APRTerm: 30 years

1
Convert the annual rate to a monthly rate
r = 6.5% ÷ 12= 0.5417%
2
Total number of monthly payments
n = 30 years × 12= 360 payments
3
Apply the amortizing-loan formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]= $2,123.75/mo
4
Total paid over the full term
$2,123.75 × 360 payments= $764,549.48
5
Total interest paid
$764,549.48 − $336,000.00 principal= $428,549.48

Result

Monthly payment (P&I): $2,123.75

Over 30 years you'll pay $428,549 in interest — that's 128% on top of the $336,000 you borrowed. Adding extra to your monthly payment (above) is the most direct way to cut that down.

Monthly principal and interest on a mortgage at 6.5% with 20% down

Each row takes a home price, subtracts a 20% down payment, and runs the remaining loan through the amortizing-loan formula at a 6.5% rate. The payment columns are principal and interest only, so property tax and home insurance still have to be added on top.

Home price	Loan amount (20% down)	30-year monthly P&I	15-year monthly P&I	Total interest, 30-year
$200,000	$160,000	$1,011.31	$1,393.77	$204,071
$250,000	$200,000	$1,264.14	$1,742.21	$255,089
$300,000	$240,000	$1,516.96	$2,090.66	$306,107
$350,000	$280,000	$1,769.79	$2,439.10	$357,125
$400,000	$320,000	$2,022.62	$2,787.54	$408,142
$450,000	$360,000	$2,275.44	$3,135.99	$459,160
$500,000	$400,000	$2,528.27	$3,484.43	$510,178
$600,000	$480,000	$3,033.93	$4,181.32	$612,214
$750,000	$600,000	$3,792.41	$5,226.64	$765,267
$1,000,000	$800,000	$5,056.54	$6,968.86	$1,020,356

Illustrative only, at one assumed rate. These are principal and interest alone - the payment you actually send also carries property tax and homeowners insurance, which commonly add $400 to $700 a month on a mid-priced US home and vary enormously by state and county. HOA dues and private mortgage insurance are excluded too, and PMI generally applies whenever you put down less than the 20% assumed here. Over a full 30-year term the interest column typically exceeds the amount borrowed; the 15-year column shows the other side of that, a much larger monthly payment for roughly half the lifetime interest. Enter your own price, down payment, rate, tax and insurance above for a figure that reflects your situation.

How the math works

The principal & interest portion uses the standard amortizing-loan formula: M = P · [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. Property tax and home insurance are estimated from the annual amounts you enter, divided by 12.

Tips for accurate estimates

Property taxes vary by city — check your county assessor.
Home insurance averages 0.3%–0.6% of home value per year.
A 20% down payment typically removes private mortgage insurance.
Use the amortization view to see when most interest is paid.

Worked example

Borrow $336,000 at 6.5% for 30 years. The monthly rate is 6.5% ÷ 12 = 0.5417%, over n = 360 payments. The formula gives a principal & interest payment of about $2,124/month. Add $350 property tax and $125 insurance and the full payment is roughly $2,599. Over the whole term you'd pay about $428,500 in interest — more than the amount borrowed, which is why even small rate or term changes matter so much.

Common mistakes

Budgeting for principal & interest only, forgetting taxes, insurance, and any HOA or PMI.
Assuming a lower rate always wins — points and closing costs can erase the savings.
Ignoring how much a 30- vs 15-year term changes total interest paid.
Overlooking that early payments are almost all interest, so extra principal early saves the most.

Frequently asked questions

How is my monthly mortgage payment calculated?

The principal and interest portion uses the standard amortizing-loan formula: M = P · [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). Property tax and home insurance are added on top, each divided by 12 from the annual amount you enter.

What is included in the monthly payment estimate?

This calculator includes four parts often called PITI: principal, interest, property taxes, and homeowners insurance. It does not include HOA dues or private mortgage insurance (PMI), which apply in specific situations — add those separately if they apply to you.

How much of a down payment do I need?

A 20% down payment is the common benchmark because it typically lets you avoid private mortgage insurance (PMI). Many loan programs allow far less — some as low as 3% to 5% — but a smaller down payment usually means a larger loan, PMI, and more interest over time.

How can I pay off my mortgage faster?

Adding extra to each monthly payment goes straight to principal and can cut years off the loan. Even one additional payment per year noticeably shortens a 30-year term. Use the 'Pay it off faster' control above to see the effect of any extra amount, and confirm your loan has no prepayment penalty.

Why is so much of my early payment going to interest?

Interest is charged on the outstanding balance, which is highest at the start. So early payments are mostly interest and only slightly reduce principal; as the balance falls, the mix flips and later payments are mostly principal. The amortization view above shows exactly when that crossover happens.