Real Estate
Mortgage Calculator
Work out your monthly mortgage payment including property tax and insurance, see the total interest over the life of the loan, and find out how much extra payments save.
Monthly payment
$2,573
principal, interest, tax & insurance
Principal & interest
$2,023
per month
Tax, insurance & HOA
$550.00
per month
Loan amount
$320,000
Down payment
$80,000
Total interest
$408,142
over the full term
Total of payments
$728,142
principal + interest
Borrowing $320,000 over 30 years at 6.50% costs $2,023 a month in principal and interest, and $408,142 in interest over the life of the loan.
Adding property tax, insurance, and HOA dues brings the full monthly housing payment to $2,573.
Even a modest extra monthly payment shortens the loan and cuts the total interest — try one under advanced options.
Loan balance over time
Your numbers
Per year.
Per year.
+Advanced options
Per month.
Paid on top of the scheduled payment, straight to principal.
See how the loan term changes the cost
Same home, down payment, and rate — three loan terms. A shorter term raises the monthly payment but cuts the total interest sharply.
15-year loan
$2,788
per month, principal & interest
$181,758 total interest
20-year loan
$2,386
per month, principal & interest
$252,600 total interest
30-year loan
$2,023
per month, principal & interest
$408,142 total interest
The Mortgage formula
Monthly Payment = P × r(1 + r)^n ÷ ((1 + r)^n − 1)
P is the loan amount (home price minus down payment), r is the annual interest rate divided by 12, and n is the loan term in months. This gives principal and interest only; property tax, home insurance, and HOA dues are added to it for the full monthly payment.
Total interest is the principal-and-interest payment times the number of payments, minus the amount borrowed. With an extra monthly payment, the calculator amortizes the loan month by month, applying the extra amount to principal, to find the new payoff date.
Understanding Mortgage
A mortgage payment looks like one number, but it is really two loans working in opposite directions. In the first years, most of each payment is interest and only a sliver reduces what you owe. Over time the balance falls, the interest charged each month falls with it, and a growing share of the same payment goes to principal. That shift is called amortization, and the chart above shows it as the curved line falling toward zero.
The rate matters more than it looks. On a $320,000 loan over 30 years, moving from 6% to 7% adds roughly $210 to the monthly payment and around $75,000 to the total interest. Comparing offers on the rate alone, and checking the total interest figure rather than just the monthly payment, is the quickest way to see what a loan will really cost.
The term is a trade-off, not a free choice. A shorter term means bigger payments but much less interest, because the balance shrinks faster and is charged interest for fewer years. A longer term keeps monthly costs down, which can matter more if it leaves room for savings or other goals.
Tax and insurance belong in the budget. Lenders and buyers both look at the full monthly payment, not just principal and interest. In high-tax areas, property tax alone can add a large amount to every monthly payment.
If you are buying to rent out, the payment is only one input. The property investment calculator puts it next to rent, expenses, and appreciation to show cash flow and long-term equity.
Mortgage FAQ
How is a monthly mortgage payment calculated?+
For a fixed-rate loan, the principal-and-interest payment is M = P × r(1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. Property tax, home insurance, and any HOA dues are then added on top to get the full monthly housing payment.
What does PITI mean?+
PITI stands for principal, interest, taxes, and insurance — the four parts of a typical monthly housing payment. Lenders usually look at PITI, not just principal and interest, when they judge whether a payment is affordable relative to your income.
Is a 15-year or a 30-year mortgage better?+
Neither is better in general. A 15-year loan has a higher monthly payment but usually a lower rate and far less total interest. A 30-year loan keeps the monthly payment lower and leaves more room in your budget, at the cost of paying much more interest over time. The comparison under the calculator shows both sides for your numbers.
How much do extra payments really save?+
Extra payments go straight to principal, so every later month charges interest on a smaller balance. Early in the loan, when most of each payment is interest, even a small extra amount can take years off the term. Open advanced options and enter an extra monthly payment to see the payoff date and interest saved.
Does this calculator include PMI or closing costs?+
No. Private mortgage insurance (often charged when the down payment is under 20%) and one-off closing costs vary widely by lender and location, so they are left out. Add a PMI estimate to the insurance field if you want it reflected in the monthly payment.
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View all →Educational tool, not advice. This calculator illustrates a standard formula using the numbers you enter. It does not account for your full financial picture, taxes, or local market conditions, and it is not a recommendation to buy, sell, or hold any asset. Speak with a licensed professional before making investment decisions.