Mortgage & Loan Calculator
Estimate your monthly payment, total interest, and see the full amortization schedule.
Show full amortization schedule
| Month | Payment | Principal | Interest | Balance |
|---|
How mortgage payments are calculated
This calculator uses the standard fixed-rate amortization formula used by virtually every mortgage and auto loan lender: payment = P × r / (1 − (1 + r)⁻ⁿ), where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (years × 12). The result is a fixed monthly payment for the life of the loan.
Why the interest/principal split changes over time
Interest is charged on the remaining balance each month, so early payments are mostly interest — the balance is still high. As the balance shrinks month by month, a growing share of each fixed payment goes toward principal. This is normal and shows up clearly in the amortization table and chart above.
What this doesn't include
This is a principal-and-interest calculator. Real monthly housing costs often also include property taxes, homeowners insurance, private mortgage insurance (PMI) if your down payment is under 20%, and HOA fees — add those separately for a full picture. Treat every number here as an estimate for planning, not a loan offer.
Frequently asked questions
How is the monthly payment calculated?
This calculator uses the standard fixed-rate amortization formula: payment = P × r / (1 − (1 + r)⁻ⁿ), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
Does this include property taxes and insurance?
No. This calculates principal and interest only. Property taxes, homeowners insurance, PMI and HOA fees vary by location and lender, so add them separately to get your full monthly housing cost.
Why does more of my payment go to interest early on?
Interest is calculated on the remaining balance each month. Early on the balance is highest, so more of each payment covers interest; as the balance shrinks, more goes toward principal.
Is this financial advice?
No. This tool provides an estimate for planning purposes only. Actual loan terms, rates and fees depend on your lender and financial situation — consult a mortgage professional before making decisions.