Mortgage Payment Calculator
Calculate your exact monthly mortgage payment including principal and interest. Adjust rate and term to find the right payment for you.
Monthly P&I Payment
$0
How to Use This Calculator
Enter your loan amount, interest rate, and term. The calculator shows your monthly principal and interest payment, total cost over the life of the loan, and a comparison table for common loan terms.
Mortgage Payment Formula
M = P ร [r(1+r)โฟ] / [(1+r)โฟ โ 1] P = loan amount ยท r = monthly rate (annual รท 12) ยท n = number of payments
Understanding Amortization
Early mortgage payments are mostly interest โ on a $300K 30-year loan at 6.5%, your first payment of $1,896 is about $1,625 interest and only $271 principal. By the final payment it flips โ almost all principal. This is why paying extra early in the loan saves the most money.
Frequently Asked Questions
- Use the formula: M = P ร [r(1+r)โฟ] / [(1+r)โฟ โ 1]. For a $300,000 loan at 6.5% for 30 years: monthly rate r = 0.065/12 = 0.005417, n = 360 payments โ M = $1,896/month.
- A basic mortgage payment covers Principal (paying down the loan) and Interest (the cost of borrowing). This is called P&I. Your total housing payment (PITI) also includes Property Taxes, and Insurance (homeowners + PMI if applicable).
- Step 1: Find monthly rate r = annual rate รท 12. Step 2: Find n = years ร 12. Step 3: M = P ร r ร (1+r)โฟ / [(1+r)โฟ โ 1]. Example: $250,000 at 7%, 30yr โ r=0.005833, n=360 โ M = $1,663/month.
- PITI stands for Principal, Interest, Taxes, and Insurance โ the four components of a full monthly mortgage payment. Lenders use PITI to calculate your debt-to-income ratio. Our calculator shows P&I; add your annual property taxes รท 12 and insurance premium รท 12 for total PITI.
- Key ways: (1) Make a larger down payment to reduce the loan balance. (2) Extend the loan term to 30 years. (3) Refinance to a lower interest rate. (4) Get rid of PMI once you have 20% equity. (5) Appeal your property tax assessment.
- Extra payments reduce the principal directly, cutting the interest charged on future payments. Even $100/month extra on a $300,000 30-year loan at 7% saves over $40,000 in interest and cuts 4+ years off the loan. Our calculator shows this in the extra payment section.
- An interest-only mortgage lets you pay just the interest for an initial period (5โ10 years). Monthly payments are lower, but you build no equity. After the interest-only period ends, payments jump significantly to amortize the full principal over the remaining term.
- Biweekly payment = monthly payment รท 2. Because there are 26 biweekly periods per year, you effectively make 13 monthly payments instead of 12. This can shave 4โ6 years off a 30-year mortgage and save tens of thousands in interest.
- Every dollar of extra principal reduces future interest charges. The payoff is most powerful early in the loan when interest represents the largest share of each payment. Even a one-time lump sum early can save years of payments and significant interest.
- A 15-year mortgage has a lower rate (typically 0.5โ0.75% less) and you pay far less total interest โ but monthly payments are roughly 40โ50% higher. A 30-year mortgage has lower payments but costs much more in total interest. Choose based on your cash flow needs and savings goals.