Calculate your monthly mortgage payment, see the full amortization schedule, and discover how extra payments can save you thousands in interest.
Loan details
Your monthly payment breakdown
Full amortization schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Enter loan details above to generate schedule | ||||
This mortgage calculator is for informational and educational purposes only. Results are estimates and do not include PMI, HOA fees, closing costs, or other loan-specific fees. Actual mortgage payments, rates, and terms will vary based on your lender, credit score, and loan type. Consult a licensed mortgage professional for advice specific to your situation.
How to use the Mortgage Amortization Calculator
This calculator shows your monthly mortgage payment, the full amortization schedule, and the total interest you'll pay over the life of the loan. Here's how to use it:
- Enter your home price and down payment. The down payment is subtracted from the home price to determine your loan amount. A down payment below 20% typically triggers PMI (Private Mortgage Insurance).
- Enter your interest rate. Use the annual rate from your lender's quote or current mortgage rate estimates. Even a 0.25% difference in rate significantly affects your total interest paid over 30 years.
- Select your loan term. The most common terms are 30 years and 15 years. A 15-year loan has a higher monthly payment but dramatically less total interest.
- Add property tax, insurance, and HOA fees. These are part of your real monthly housing cost and are included in lender qualification calculations (your PITI payment).
- Click Calculate to see your full monthly payment, total interest over the loan life, an amortization schedule showing principal and interest for every payment, and the impact of making extra payments.
How mortgage amortization works
Amortization is the process of paying off a loan through regular payments over time. With a standard fixed-rate mortgage, your monthly payment stays the same from the first payment to the last — but the split between principal and interest changes dramatically over the life of the loan.
In the early years of a mortgage, the vast majority of each payment goes toward interest. As time passes and the principal balance decreases, more of each payment applies to principal. This front-loading of interest is why paying off a mortgage early — or making extra principal payments — saves a disproportionately large amount of money.
Example: $400,000 loan at 6.8% for 30 years
| Payment # | Payment | Principal | Interest | Balance remaining |
|---|---|---|---|---|
| 1 | $2,609 | $338 | $2,267 | $399,658 |
| 12 (Year 1) | $2,609 | $340 | $2,269 | $395,896 |
| 60 (Year 5) | $2,609 | $374 | $2,235 | $378,938 |
| 180 (Year 15) | $2,609 | $541 | $2,068 | $340,047 |
| 300 (Year 25) | $2,609 | $1,047 | $1,562 | $249,648 |
| 360 (Year 30) | $2,609 | $2,594 | $15 | $0 |
The total interest cost
Over 30 years, a $400,000 loan at 6.8% results in total payments of approximately $939,240 — meaning you pay $539,240 in interest alone on top of the $400,000 principal. Understanding this number is critical for making informed decisions about loan term, extra payments, and refinancing opportunities.
15-year vs. 30-year mortgage comparison
| Factor | 30-year mortgage | 15-year mortgage |
|---|---|---|
| Monthly payment (at 6.8%) | $2,609 | $3,545 |
| Total interest paid | ~$539,000 | ~$238,000 |
| Interest savings | — | ~$301,000 |
| Extra monthly cost | — | ~$936/month more |
| Loan paid off | 2055 | 2040 |
Example based on $400,000 loan. Rates are illustrative — 15-year rates are typically 0.5–0.75% lower than 30-year rates.
Frequently asked questions
What is included in a monthly mortgage payment?
A complete monthly mortgage payment typically consists of four components, often referred to as PITI: Principal (the portion reducing your loan balance), Interest (the cost of borrowing), Taxes (property taxes, usually collected monthly and held in escrow), and Insurance (homeowner's insurance, also often escrowed). If your down payment was less than 20%, Private Mortgage Insurance (PMI) is also included. The principal and interest portion is fixed for the life of a fixed-rate mortgage, while taxes, insurance, and PMI can change annually.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) protects the lender — not you — if you default on the loan. It's required on conventional loans when your down payment is less than 20%. PMI typically costs 0.5%–1.5% of the loan amount annually, or $167–$500 per month on a $400,000 loan. Under the Homeowners Protection Act, you can request PMI cancellation when your loan balance reaches 80% of the original home value. Lenders must automatically cancel PMI when you reach 78% loan-to-value based on the original amortization schedule.
How does paying extra principal affect my mortgage?
Extra principal payments reduce your loan balance faster, which means less future interest accrues. The savings compound over time — each dollar of principal paid early eliminates all future interest that would have been charged on that dollar. Even modest extra payments can save tens of thousands of dollars and shave years off your loan. When making extra payments, specify to your servicer that you want them applied to principal — not to prepaying your next scheduled payment.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage saves dramatically on total interest and builds equity faster, but the higher monthly payment reduces cash flow flexibility. A 30-year mortgage has a lower required payment, giving you flexibility to invest the difference or maintain emergency reserves — but you'll pay far more in total interest. A common compromise: get a 30-year mortgage but make extra principal payments voluntarily. This gives you the lower required payment as a safety net while still paying off the loan faster when cash flow allows.
When does refinancing make sense?
Refinancing generally makes sense when you can reduce your interest rate by at least 0.5%–1%, when you plan to stay in the home long enough to recover the closing costs (typically 2–5% of the loan amount), or when you want to switch from an adjustable-rate to a fixed-rate mortgage. To calculate your break-even point, divide your total refinancing costs by your monthly payment savings. If your break-even is 24 months and you plan to stay 7+ years, refinancing likely makes sense.
What credit score do I need to get a good mortgage rate?
Credit score requirements vary by loan type. For conventional loans, a score of 620 is typically the minimum, but rates improve significantly as your score rises. Borrowers with scores above 740–760 typically receive the best available rates. FHA loans accept scores as low as 580 (with 3.5% down) or even 500 (with 10% down), but charge mortgage insurance premiums regardless of down payment size. VA loans (for veterans) and USDA loans (for rural areas) have no formal minimum score requirements, though lenders typically prefer 620+.
Tips for getting the best mortgage
- Shop at least three lenders. Mortgage rates vary significantly between lenders. Getting quotes from at least three — including a bank, a credit union, and an online lender — can save thousands over the life of the loan. Multiple mortgage inquiries within a 14–45 day window are typically treated as a single inquiry by credit bureaus.
- Improve your credit score before applying. Pay down revolving balances to under 30% of credit limits, correct any errors on your credit report, and avoid opening new credit accounts in the 6 months before applying.
- Save for a 20% down payment if possible. Reaching 20% eliminates PMI, reduces your monthly payment, and often qualifies you for better rates. If you can't reach 20%, 10% still reduces your loan balance and PMI costs versus putting less down.
- Understand points. Mortgage points (discount points) let you pay upfront to reduce your interest rate — typically 1 point costs 1% of the loan and reduces the rate by 0.25%. Calculate the break-even point (upfront cost ÷ monthly savings) to determine if buying points makes sense for your situation.
- Get pre-approved, not just pre-qualified. Pre-qualification is a quick estimate; pre-approval involves a full credit check and income verification. In competitive markets, sellers view pre-approved buyers much more seriously than pre-qualified ones.