Mortgage Calculator
Estimate your total monthly mortgage payment, analyze principal vs. interest costs, and view a complete year-by-year loan amortization schedule.
Annual Amortization Schedule
Year-by-year breakdown of principal vs. interest payments over the life of the loan:
| Year | Principal Paid | Interest Paid | Total Payment | Remaining Balance |
|---|
How a Mortgage Payment is Calculated
A standard fixed-rate mortgage payment consists of four primary components (often referred to as PITI + HOA):
- Principal: The portion of the payment that reduces your original loan balance.
- Interest: The fee charged by the lender for borrowing the principal amount.
- Property Tax: Local government property taxes divided into 12 monthly installments.
- Home Insurance: Hazard/homeowner insurance coverage to protect the property.
- HOA Fees: Homeowners Association dues for shared amenities or maintenance.
Amortization Formula
The principal and interest payment is calculated using the standard annuity formula: M = P [ r(1+r)^n ] / [ (1+r)^n - 1 ], where P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments.
Frequently Asked Questions
How much down payment do I need?
While a 20% down payment avoids Private Mortgage Insurance (PMI), many conventional loan programs accept 3% to 5% down, and FHA loans accept 3.5% down.
How does loan term affect total interest?
A 15-year mortgage has higher monthly payments than a 30-year loan, but saves tens of thousands of dollars in total interest paid over the life of the loan.
⚠️ Mortgage & Financial Disclaimer & Last Updated (2026)
This calculator is provided for estimation and educational purposes only and does not constitute formal mortgage underwriting or financial advice. Actual mortgage payments vary depending on credit score, lender underwriting fees, local property tax assessments, and changing interest rates. Always consult a licensed mortgage broker or loan officer for official loan estimates.