Finance Calc App

US Mortgage calculator

Estimate your monthly principal & interest payment and see how the balance falls over the life of the loan.

By Ward Last reviewed Methodology

Loan details

Monthly payment
$2,022.62
Total interest
$408,142.36
Total paid
$728,142.36
Yearly amortization
YearPrincipalInterestBalance
1$3,576.72$20,694.69$316,423.28
2$3,816.26$20,455.15$312,607.02
3$4,071.84$20,199.57$308,535.17
4$4,344.54$19,926.87$304,190.63
5$4,635.50$19,635.91$299,555.13
6$4,945.95$19,325.46$294,609.18
7$5,277.19$18,994.22$289,331.98
8$5,630.62$18,640.80$283,701.37
9$6,007.71$18,263.70$277,693.66
10$6,410.06$17,861.36$271,283.60
11$6,839.35$17,432.06$264,444.26
12$7,297.39$16,974.02$257,146.86
13$7,786.11$16,485.30$249,360.75
14$8,307.56$15,963.85$241,053.19
15$8,863.94$15,407.48$232,189.25
16$9,457.57$14,813.84$222,731.68
17$10,090.96$14,180.45$212,640.72
18$10,766.77$13,504.64$201,873.95
19$11,487.84$12,783.57$190,386.11
20$12,257.20$12,014.21$178,128.90
21$13,078.09$11,193.32$165,050.81
22$13,953.96$10,317.46$151,096.86
23$14,888.48$9,382.93$136,208.38
24$15,885.59$8,385.83$120,322.79
25$16,949.47$7,321.94$103,373.32
26$18,084.61$6,186.80$85,288.71
27$19,295.77$4,975.64$65,992.94
28$20,588.05$3,683.37$45,404.89
29$21,966.86$2,304.55$23,438.03
30$23,438.03$833.39$0.00
Want the full picture? What Is PMI? How to Avoid Private Mortgage Insurance →

How a mortgage payment is calculated

Your monthly principal-and-interest (P&I) payment uses the standard amortization formula: M = P · r · (1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual ÷ 12), and n is the total number of monthly payments (years × 12). The formula spreads the loan across equal monthly amounts — what changes month to month is the split between principal and interest.

Worked example

Buy a $400,000 home with 20% down ($80,000), financing $320,000 at 6.5% over 30 years:

A 15-year term at the same rate would push the monthly payment to $2,787 but cut total interest to about $181,650 — a $226,500 lifetime saving.

How amortization works

Early in a mortgage, almost all of each payment is interest. In month one of the example above, $1,733 of the $2,023 payment is interest and just $290 reduces the loan balance. By year 25 those proportions flip. This is why one extra payment per year can dramatically shorten the loan — every dollar of extra principal eliminates all future interest that would have accrued on it.

Common mistakes

What this calculator doesn't cover

Add these separately for a complete monthly housing-cost estimate. For affordability with all these factored in, try the affordability calculator.

Related calculators

Affordability calculator

How much house can I afford?

Refinance calculator

Break-even & lifetime savings

Rent vs. buy

True-cost comparison

Frequently asked questions

How is a monthly mortgage payment calculated?
Your monthly principal-and-interest payment uses the standard amortization formula: M = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). For a $320,000 loan at 6.5% over 30 years that works out to roughly $2,022 a month before tax and insurance.
What's not included in this monthly payment?
This calculator shows principal and interest only. Your real monthly housing cost typically also includes property tax (often escrowed monthly), homeowners or building insurance, private mortgage insurance (PMI) if you put down less than 20%, HOA or service-charge fees, and ongoing maintenance. Total carrying cost (PITI plus HOA) often runs 20–40% higher than P&I alone.
How much house can I afford on my salary?
Most lenders use the 28/36 rule — total housing payment no more than 28% of gross monthly income, and total debts no more than 36%. A $90,000 salary supports roughly $2,100/month in housing, or about a $300,000 mortgage at 6.5%. Try our affordability calculator for a number tailored to your income, debts, down payment, and rate.
How can I lower my monthly mortgage payment?
There are three levers: lower the loan amount (a bigger down payment), lower the rate (better credit, paying points, or refinancing), or lengthen the term (30-year vs 15-year). Each has a trade-off — a larger down payment ties up cash, points cost money up front, and a longer term means substantially more total interest paid over the life of the loan.
What is amortization?
Amortization is how each mortgage payment is split between interest and principal. Early in the loan almost all of your payment is interest, because interest accrues on the full outstanding balance. As the balance shrinks, the interest portion shrinks too and more of each payment goes to principal. The yearly schedule above shows exactly how that split evolves.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage typically pays 50–60% less total interest than a 30-year, but the monthly payment is roughly 40–50% higher. A 30-year gives you flexibility — you can always make extra principal payments to mimic a shorter term — and frees up cash flow for investing, emergencies, or other goals. The right choice depends on income stability and competing priorities.

Embed this calculator

Free to embed on your website, blog, or resource page — no signup, no fees, no API key. The calculator runs entirely in the visitor's browser. 

<iframe
  src="https://financecalcapp.com/embed/mortgage/us/"
  width="100%"
  height="680"
  frameborder="0"
  title="Mortgage Calculator"
  loading="lazy"
></iframe>
<p>Free <a href="https://financecalcapp.com/calculators/mortgage/us/">Mortgage Calculator</a> by <a href="https://financecalcapp.com">Finance Calc App</a></p>