Monthly payments, total interest, amortization schedule — calculated instantly for any loan.
Your monthly mortgage payment is calculated using the standard amortization formula: M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1], where P is principal, r is the monthly interest rate, and n is the number of payments.
In the early years of a loan, the majority of each payment goes toward interest. As the principal decreases, more of each payment shifts to reducing the actual loan balance.
This is why making extra principal payments early in the loan term has such a dramatic effect on total interest paid.
A fixed-rate mortgage locks your interest rate for the life of the loan, giving you predictable payments. It's ideal when rates are low or you plan to stay long-term.
An adjustable-rate mortgage (ARM) starts with a lower fixed rate, then adjusts periodically based on market indexes. A 5/1 ARM is fixed for 5 years, then adjusts annually.
ARMs can save money if you sell or refinance before the adjustment period, but carry risk if rates rise significantly.
This calculator shows your principal and interest (P&I) payment. Your actual monthly payment will also include escrow costs for property taxes, homeowner's insurance, and potentially PMI (private mortgage insurance) if your down payment is under 20%.
PMI typically costs 0.5–1.5% of the loan annually and is automatically removed once you reach 20% equity.
Making bi-weekly payments instead of monthly effectively adds one extra payment per year, which can reduce a 30-year mortgage by 4–6 years.
Applying any windfalls (tax refunds, bonuses) directly to principal has an outsized effect early in the loan when interest charges are highest.
Refinancing when rates drop by 0.75% or more can also significantly reduce your total cost, especially if you have 10+ years remaining on the loan.