Mortgage Calculator

The principal and interest portion uses the amortization formula M = L × r(1+r)^n ÷ [(1+r)^n − 1], where L is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. For example, a $200,000 loan at 6.5% for 30 years is $1,264.14 a month. Property tax, homeowners insurance, PMI, and HOA dues are then added to get your full monthly payment.

PITI stands for principal, interest, taxes, and insurance. Many lenders collect property taxes and homeowners insurance through an escrow account as part of your monthly payment. If your down payment is under 20%, private mortgage insurance (PMI) is usually added too, and HOA dues are often paid separately but belong in your housing budget.

For most conventional loans on a primary residence closed on or after July 29, 1999, the Homeowners Protection Act requires your servicer to cancel PMI automatically when your balance is scheduled to reach 78% of the home's original value, as long as you're current on payments. You can ask to cancel it earlier, once the balance reaches 80%, if you meet the lender's requirements. PMI must also end the month after the loan's midpoint, such as after 15 years on a 30-year loan. FHA mortgage insurance follows different rules.

Freddie Mac estimates that borrowers typically pay about $30 to $70 per month for every $100,000 borrowed. Your actual premium depends mainly on your credit score, down payment, and loan type, and it appears on your Loan Estimate. Enter your quoted monthly PMI under Advanced to include it.

Extra payments reduce principal directly, so every later month's interest is calculated on a smaller balance. That shortens the loan and cuts total interest. With the calculator's defaults, adding $200 a month to a $360,000 loan at 6.5% saves about $108,900 in interest and pays the loan off roughly six years sooner. Check that your servicer applies extra money to principal and that your loan has no prepayment penalty.

The same total amount saves a little more when it's paid sooner, because the balance drops earlier and less interest builds up. Monthly extras usually beat a single annual lump sum of the same size, but the difference is small. Consistency matters more than timing, so pick the schedule you can keep up.

Interest each month is the remaining balance times the monthly rate. At the start the balance is at its highest, so interest takes most of the fixed payment and little goes to principal. As the balance falls, the split gradually shifts toward principal. The Principal vs. interest chart and the amortization schedule show this month by month.

A 15-year mortgage has a higher monthly payment but usually a lower rate and far less total interest. A 30-year mortgage keeps the payment lower and more flexible, and you can still prepay it. Compare both terms here and look at total interest and whether the higher payment fits comfortably in your budget.

Enter the interest rate (note rate). The APR also spreads lender fees and points over the life of the loan, so it's useful for comparing offers, but your monthly principal and interest payment is based on the interest rate.

No. It covers the ongoing monthly payment and the cost of the loan over time. Closing costs, often a few percent of the loan amount, are paid once at closing and are listed on your Loan Estimate and Closing Disclosure.