⚑ An estimate, not advice
This tool provides estimates for educational purposes only and is not financial, tax or legal advice. Consult a licensed professional before making decisions.
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$
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Estimated monthly payment
$0
$0Principal + interest
$0Taxes + insurance + HOA
$0Total interest
$0Total cost of loan
Amortization schedule (by year)
| Year | Principal | Interest | Remaining balance |
|---|
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Your principal-and-interest payment is calculated with the standard amortization formula:
M = P · [ r(1+r)n ] / [ (1+r)n − 1 ]
where P is the loan amount (price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). We then add monthly property tax, home insurance and any HOA fees to estimate your full housing payment.
Early in the loan, most of each payment goes to interest; over time the balance falls and more goes to principal — which is why the chart above slopes down slowly at first, then faster. Total interest is the sum of all interest you pay over the loan (M × n − P), and total cost adds the taxes, insurance and HOA you'll pay across the term too.
Frequently asked questions
How is a monthly mortgage payment calculated?
It uses M = P·[r(1+r)ⁿ]/[(1+r)ⁿ−1], where P is the loan amount, r the monthly rate (annual ÷ 12) and n the number of months. Property tax, home insurance and HOA are added on top.
What is an amortization schedule?
It shows how each payment splits between interest and principal across the loan. Early payments are mostly interest; later ones are mostly principal, until the balance reaches zero.
Does this include taxes and insurance?
Yes — add annual property tax, annual home insurance and monthly HOA, and they're folded into your estimated total monthly payment.
How can I lower my monthly payment?
A bigger down payment, a lower rate, a longer term, or dropping PMI all help. A longer term lowers the payment but usually raises the total interest you pay.
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Sources & further reading
Standard amortization formula; U.S. Consumer Financial Protection Bureau (consumerfinance.gov) for mortgage guidance. Read our full disclaimer →