Mortgage Calculator — Monthly Payment, Interest & Amortization
Mortgage Calculator
Estimate your monthly payment, total borrowing cost, and homeowners’ recurring costs.
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Amortization preview
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What is a mortgage payment?
A mortgage payment often includes more than just your principal and interest. In many cases, it also includes property taxes, homeowners insurance, HOA fees, and sometimes PMI when your down payment is smaller than 20%.
The mortgage itself is often the largest part of the payment, but the full housing cost can be materially higher than the base loan payment. That is why it is helpful to compare the total monthly housing cost, not only the loan payment.
Amortization matters because early payments are weighted more toward interest. As the loan matures, more of each payment goes toward reducing principal and less toward interest costs.
- Lower rates reduce borrowing cost over time.
- Larger down payments can reduce the loan amount and sometimes eliminate PMI.
- Shorter terms usually mean higher monthly payments but lower total interest.
- Extra monthly payments can reduce both payoff time and lifetime interest.
Frequently asked questions
What does a mortgage payment include?
Most mortgage payments include principal and interest, with taxes, insurance, HOA fees, and PMI potentially added depending on your loan and property.
How does amortization work?
With amortization, each payment is split between interest and principal. In the early years, interest takes a larger share; over time, more of your payment reduces the loan balance.
Why does PMI matter?
PMI is often required when the down payment is below 20% of the home price. It adds to your monthly housing cost until the loan-to-value ratio improves.
Does a lower rate always mean a cheaper loan?
Generally, lower rates reduce payment and interest, but the total cost also depends on loan amount, term, fees, taxes, and insurance.
How can I reduce my mortgage cost?
You can reduce cost by increasing the down payment, shopping for a lower rate, selecting a shorter term, or making extra principal payments.
Is this estimate a lender approval?
No. This calculator is an educational estimate and is not a guarantee of approval, rate availability, or final loan terms.