Mortgage Calculator
Calculate your full monthly mortgage payment including principal, interest, property tax, insurance, PMI, and HOA. See your amortization schedule and total cost of homeownership.
Total Monthly Payment
$2,548/mo
Principal & Interest
$2,023
Loan Amount
$320,000
Payoff Date
Mar 2056
| Component | Monthly | Total (30yr) |
|---|---|---|
| Principal & Interest | $2,023 | $728,142 |
| Property Tax | $400 | $144,000 |
| Home Insurance | $125 | $45,000 |
| Total | $2,548 | $917,142 |
Loan Summary
Home Price: $400,000
Down Payment: $80,000 (20.0%)
Loan Amount: $320,000
Total Interest Paid: $408,142
Total of All Payments: $728,142
Amortization Schedule (Yearly)
| Year | Principal | Interest | Ending Balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 2 | $3,816 | $20,455 | $312,607 |
| 3 | $4,072 | $20,200 | $308,535 |
| 4 | $4,345 | $19,927 | $304,191 |
| 5 | $4,636 | $19,636 | $299,555 |
| 6 | $4,946 | $19,325 | $294,609 |
| 7 | $5,277 | $18,994 | $289,332 |
| 8 | $5,631 | $18,641 | $283,701 |
| 9 | $6,008 | $18,264 | $277,694 |
| 10 | $6,410 | $17,861 | $271,284 |
π How Mortgage is Calculated
Calculate loan amount
$400,000 home β $80,000 down (20%)= Loan: $320,000
Monthly interest rate
r = 6.5% Γ· 12 = 0.005417= Monthly rate: 0.5417%
P&I payment (30yr)
M = $320K Γ 0.005417 Γ (1.005417)^360 Γ· ((1.005417)^360 β 1)= P&I: $2,023/mo
Add taxes + insurance
$2,023 + $400 (tax) + $125 (insurance) + $0 (no PMI)= Total: $2,548/mo
Rate Comparison
30-Year Fixed
$2,023/mo
6.5% rate | Total interest: $408,185 | Lower payment, higher total cost
15-Year Fixed
$2,789/mo
5.9% rate | Total interest: $181,984 | Saves $226,201!
20% Down Payment Strategy
π‘ How Mortgage Payments Work in the U.S.
Your monthly mortgage payment has up to five components, often called PITI+: Principal (paying down the loan balance), Interest (the cost of borrowing), Taxes (property tax escrowed monthly), Insurance (homeowner's insurance), and optional PMI/HOA fees. The principal and interest portion is calculated using the standard amortization formula β M = P Γ r(1+r)^n / ((1+r)^n β 1) β which keeps your payment fixed while gradually shifting the balance from interest-heavy to principal-heavy over time.
The 20% down payment threshold is one of the most important numbers in home buying. Putting less than 20% down triggers Private Mortgage Insurance (PMI), which costs 0.3%β1.5% of the loan amount annually β that's $80β$400/month on a $320,000 loan. PMI automatically drops off when your equity reaches 22%. If you can't reach 20%, consider lender-paid PMI (built into a slightly higher rate) or FHA loans (3.5% down, but with mortgage insurance for the life of the loan).
Choosing between a 15-year and 30-year mortgage is a major decision. A 30-year loan on $320,000 at 6.5% costs $2,023/month but $408,185 in total interest. The same loan at 15 years costs $2,789/month (+$766) but only $181,984 in total interest β saving you $226,201. If you can afford the higher payment, the 15-year option builds equity faster and saves massively on interest.