Mortgage Calculator
Calculate your monthly mortgage payment, total interest paid, and amortization schedule. Includes PMI, taxes, and insurance.
Total Monthly Payment
$2,528.97
P&I: $2,128.97
Loan Amount
$320,000
Total Interest Paid
$446,428
Total Cost
$846,428
Monthly payment breakdown
Frequently Asked Questions
How is a monthly mortgage payment calculated?
Your monthly payment is calculated using the loan principal, annual interest rate, and loan term. The formula accounts for compound interest so that each payment covers both interest accrued and a portion of the principal. Early payments are mostly interest; later payments shift toward principal.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. It protects the lender if you default. PMI typically costs 0.5%–1.5% of the loan amount per year and can be removed once you reach 20% equity.
What is an amortization schedule?
An amortization schedule is a table showing every monthly payment for the life of your loan, broken down into principal and interest portions. It shows exactly how your balance decreases over time.
How much house can I afford?
A common rule is that your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income. Your total debt payments should stay below 36% of gross income (the 28/36 rule).
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus lender fees, making it a more accurate reflection of the true yearly cost of the loan.