Calculate monthly mortgage payments, total interest, and view an amortization schedule. Supports extra payments to see how much you can save.
This mortgage and loan calculator uses the standard amortization formula to compute your fixed monthly payment, total amount paid over the life of the loan, and total interest cost. It also generates a year-by-year amortization schedule so you can see exactly how your principal and interest split changes over time.
The standard formula for a fixed-rate mortgage payment is: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12).
For example, a $300,000 loan at 6.5% annual interest for 30 years: r = 6.5% / 12 = 0.542%, n = 360 months, monthly payment ≈ $1,896. Over 30 years you'd pay about $382,000 in interest — more than the original loan amount.
In the early years of a mortgage, most of your monthly payment goes toward interest, with only a small portion reducing the principal. As the loan matures, this ratio gradually flips. By the final years, most of each payment is paying down principal. This is why making extra payments early in a loan has a disproportionately large effect on total interest paid.
No, it calculates principal and interest (P&I) only. To estimate your total monthly payment, add property tax (typically 1–2% of home value annually) and homeowner's insurance.
The interest rate is the base borrowing cost. APR (Annual Percentage Rate) includes fees like origination points and closing costs, giving a truer picture of the loan's total cost — APR is typically slightly higher than the interest rate.