🏠 Mortgage Details
Enter your loan details to see your complete mortgage breakdown
📊 Your Mortgage Results
📊 Loan Term Comparison
📅 Amortization Schedule
| Year | Principal | Interest | Total Paid | Balance |
|---|
How to Use the Mortgage Calculator
Our free mortgage calculator helps you understand the true cost of buying a home before you sign anything. Simply enter your home price, down payment, interest rate and loan term to see your complete monthly payment breakdown including principal, interest, property tax and home insurance.
Understanding Your Mortgage Payment
Your total monthly mortgage payment is made up of several components. Principal is the portion that reduces your loan balance. Interest is the cost of borrowing charged by your lender. Property tax and home insurance are additional costs typically collected by your lender and held in escrow.
15 Year vs 30 Year Mortgage
A 30-year mortgage offers lower monthly payments but you pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments but you build equity faster and pay far less total interest. Use our loan term comparison above to see the exact difference for your situation.
How Much House Can You Afford?
- Most financial experts recommend keeping your monthly mortgage payment below 28% of your gross monthly income
- Your total debt payments including mortgage should stay below 36% of gross income
- A larger down payment reduces your loan amount and eliminates PMI when you put 20% or more down
- Compare rates from multiple lenders — even a 0.5% difference saves thousands over the loan term
- Factor in property taxes, insurance and maintenance costs beyond just principal and interest
What is an Amortization Schedule?
An amortization schedule shows you exactly how much of each payment goes toward principal versus interest over the life of your loan. In the early years of a mortgage, the majority of your payment goes toward interest. As years pass, more of each payment reduces your principal balance.
Complete Guide to Mortgage Calculations
Understanding your mortgage payment is one of the most important financial calculations you will ever make. A mortgage is typically the largest debt most people ever take on — and small differences in interest rate, down payment or term can mean tens of thousands of dollars over the life of your loan.
How Is a Monthly Mortgage Payment Calculated?
Your monthly mortgage payment consists of principal and interest (P&I) plus property taxes, home insurance and HOA fees if applicable. The P&I portion is calculated using the standard amortization formula which ensures your loan is fully paid off at the end of the term.
How Much House Can I Afford?
Financial advisors use two key rules to determine mortgage affordability. The 28% rule states your monthly mortgage payment should not exceed 28% of your gross monthly income. The 36% rule states your total monthly debt payments should not exceed 36% of gross income.
| Annual Income | Max Monthly Payment (28%) | Estimated Home Price (6.5%) |
|---|---|---|
| $50,000 | $1,167/mo | ~$175,000 |
| $75,000 | $1,750/mo | ~$260,000 |
| $100,000 | $2,333/mo | ~$350,000 |
| $150,000 | $3,500/mo | ~$525,000 |
| $200,000 | $4,667/mo | ~$700,000 |
15-Year vs 30-Year Mortgage — Which Is Better?
The choice between a 15-year and 30-year mortgage is one of the most important financial decisions homebuyers face. A 15-year mortgage has higher monthly payments but you pay dramatically less interest and build equity faster. A 30-year mortgage has lower payments giving more cash flow flexibility.
On a $280,000 loan at 6.5%: a 30-year mortgage costs $357,000 in total interest while a 15-year mortgage costs only $147,000 — a savings of $210,000! However the 15-year payment is $2,447/month versus $1,770/month for the 30-year — $677 more per month.
How to Pay Off Your Mortgage Faster
- Make bi-weekly payments: Pay half your monthly payment every two weeks — this results in one extra full payment per year saving years off your loan!
- Round up payments: Paying $1,800 instead of $1,770 adds $360/year to principal — small but compounds significantly over 30 years!
- Make one extra payment per year: A single annual extra payment can cut 4-5 years off a 30-year mortgage!
- Apply windfalls to principal: Tax refunds, bonuses and inheritances applied directly to principal create enormous long-term savings!
Mortgage Payment by Home Price and Rate — 2026 Reference
Monthly payments below include principal and interest only. Add $200-600 for property taxes and insurance depending on your location. Use our loan affordability calculator to see how much home you can afford, and our debt-to-income calculator to check your DTI ratio before applying.
| Home Price | @ 6.5% (30yr) | @ 7.0% (30yr) | @ 7.5% (30yr) | @ 7.0% (15yr) |
|---|---|---|---|---|
| $150,000 | $854 | $898 | $944 | $1,158 |
| $200,000 | $1,139 | $1,197 | $1,258 | $1,544 |
| $300,000 | $1,708 | $1,796 | $1,887 | $2,316 |
| $400,000 | $2,277 | $2,395 | $2,516 | $3,088 |
| $500,000 | $2,846 | $2,994 | $3,145 | $3,860 |
The True Cost of a Mortgage — Total Interest Paid
Most buyers focus on the monthly payment but the total interest paid over 30 years is the number that really matters for long-term wealth. On a $300,000 mortgage at 7% for 30 years you pay $418,527 in total interest — more than the original loan amount! This is why overpaying even $200 per month can save tens of thousands and cut years off your mortgage. Use our mortgage refinance calculator to see if refinancing at a lower rate would save money over your remaining term.
Private Mortgage Insurance (PMI) — What It Costs and How to Avoid It
PMI is required by most lenders when your down payment is less than 20% of the purchase price. It protects the lender (not you) in case of default and costs 0.5-1.5% of the loan amount annually — typically $100-250 per month on a $200,000 loan. PMI is cancelled automatically when your loan balance reaches 78% of the original purchase price, or you can request cancellation at 80%. Strategies to avoid PMI include a 20% down payment, a piggyback loan (80-10-10 structure) or lender-paid PMI in exchange for a slightly higher interest rate.