Mortgage Calculator

Estimate your monthly payment, see how much of each payment goes to interest, and plan ahead with confidence.

Total Monthly Payment
$2,423
Principal & Interest: $2,023 • Taxes & Insurance: $400
Loan amount
$320,000
Total interest
$408,142

Loan Balance Over Time

How to Calculate Mortgage Payments

Your monthly mortgage payment is based on three main inputs: your loan amount, your interest rate, and your loan term. The calculator amortizes the loan, which means each payment is split between principal and interest. Early payments are mostly interest; later payments are mostly principal.

What Is Included in a Mortgage Payment?

A typical payment has two parts. Principal & Interest pays down the loan balance and covers the cost of borrowing. Taxes & Insurance are often collected by the lender and held in escrow to pay your property tax and homeowners insurance bills. If your down payment is less than 20%, you will usually also pay private mortgage insurance (PMI).

The 28/36 Rule

A common affordability guideline says your housing payment should stay under 28% of your gross monthly income, and your total debt payments should stay under 36%. Staying within these ratios helps lenders see you as a lower-risk borrower.

Extra Payments Save Interest

Adding even one extra payment per year can shave years off a 30-year mortgage and save tens of thousands in interest. Extra payments go directly to principal, which reduces the balance that future interest is calculated on.