Mortgage Payment & Amortization Calculator
Mortgage Payment & Amortization Calculator: Enter the home price, down payment, interest rate and term to estimate your monthly principal-and-interest payment and view a year-by-year amortization schedule showing how much goes to interest versus principal.
Data as of 2026-06-14.
Estimates only — for general education, not financial advice. See our disclaimer.
The formula
M = P · r / (1 − (1 + r)⁻ⁿ)
where M is the monthly principal-and-interest payment, P is the loan amount (price minus down payment), r is the monthly interest rate (annual APR ÷ 12) and n is the number of monthly payments (years × 12). Property tax and insurance are added as a monthly escrow estimate.
How it works
- Your loan amount is the home price minus your down payment.
- Early payments are mostly interest; the principal share grows every month — that crossover is what the amortization schedule shows.
- Property tax and homeowners insurance are usually collected monthly into escrow, so we add them to the principal-and-interest figure for a fuller picture.
- This estimate excludes PMI, HOA dues and closing costs, which vary by lender and location.
Frequently asked questions
What's included in the monthly mortgage payment?
The core payment is principal and interest. Most lenders also collect property taxes and homeowners insurance monthly (escrow), and may add PMI if your down payment is under 20%. This calculator shows principal & interest plus an optional tax/insurance estimate.
How does mortgage amortization work?
Each payment is split between interest (rate × current balance) and principal (the rest). Because the balance is highest at the start, early payments are mostly interest; later payments are mostly principal. See our guide on how mortgage amortization works.
Does a bigger down payment lower my payment?
Yes. A larger down payment reduces the loan amount, which lowers both the monthly payment and total interest, and a 20%+ down payment usually removes PMI.
Is this mortgage calculator accurate?
It uses the standard amortization formula shown on this page and is accurate for fixed-rate loans. Your lender's quote may differ slightly due to rounding, PMI, points and fees. It is an estimate, not financial advice.
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Last updated: 2026-06-14