Mortgage Calculator

The monthly mortgage payment is calculated using the standard amortization 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. This gives you the principal and interest portion. Property taxes and insurance are added separately to get your total monthly payment.

An amortization schedule is a complete table showing every payment over the life of your loan. Each row breaks the payment into principal (what reduces your balance) and interest (what the lender earns). In the early years, most of your payment goes to interest. Over time, more goes to principal. This calculator shows both yearly and monthly breakdowns.

The 28/36 rule is a good starting point: your mortgage payment should be no more than 28% of gross monthly income, and total debts no more than 36%. For example, with $6,000/month gross income, aim for a mortgage payment under $1,680. Remember to factor in property taxes, insurance, and maintenance costs — not just the loan payment.

A 15-year mortgage saves you a massive amount of interest — often hundreds of thousands of dollars — but comes with higher monthly payments. A 30-year mortgage keeps payments manageable and gives you flexibility to invest the difference. Use this calculator to compare both: plug in the same loan amount with each term and see the total interest difference.

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5%–1.5% of the loan amount per year. PMI protects the lender — not you — if you default. You can request removal once you reach 20% equity, and it's automatically removed at 22% equity under federal law (for conventional loans).