Buying a home is the biggest financial decision most people ever make — and most people go into it without a clear picture of what it actually costs. This calculator shows you your monthly payment broken down into principal and interest (P&I), plus your full PITI payment when you add taxes and insurance. It also shows total interest paid over the life of the loan and an amortization summary so you can see how your balance drops over time. Use it before you go house shopping — not after.
Mortgage Calculator
See your monthly payment, total interest, and more
| Year | Principal Paid | Interest Paid | Remaining Balance |
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How This Calculator Works
Last tested: June 2026
Formula: Monthly payment = P x [r(1+r)^n] / [(1+r)^n – 1] (P=principal, r=monthly rate, n=payments)
Assumptions: Fixed-rate amortizing loan. Does not include property taxes, homeowners insurance, HOA fees, or PMI. Your actual payment will be higher.
Example: $300,000 loan at 7.0% for 30 years = $1,996/month (principal and interest only).
Educational estimate not a lender quote. Contact a licensed lender for an actual rate and payment. Results shown are educational estimates, not lender quotes or financial advice.
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Frequently Asked Questions
What does P&I mean in a mortgage payment?
P&I stands for principal and interest — the two components of the base mortgage payment. Principal is the portion that reduces your loan balance. Interest is the cost of borrowing. Your actual monthly housing cost is higher than P&I because it also includes property taxes, homeowner’s insurance, and possibly PMI and HOA fees. This calculator shows P&I by default; add the optional fields to see your full PITI estimate.
What’s not included in this mortgage calculator?
The base calculation does not include property taxes, homeowner’s insurance, PMI, or HOA fees. Use the optional input fields to include those. It also does not account for closing costs (typically 2–5% of the home price), home inspection costs, moving expenses, or ongoing maintenance (budget 1% of home value per year as a general rule).
What interest rate should I use?
Use the current average 30-year fixed rate as a starting point — Freddie Mac publishes this weekly. Your actual rate will be higher or lower depending on your credit score, down payment size, loan type, and lender. For planning purposes, add 0.25–0.50% above the published average if your credit is below 740. Actual rate quotes require a lender application.
How is a monthly mortgage payment calculated?
The standard formula is: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (loan term in years × 12). This calculator applies this formula automatically — you just enter the inputs.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage pays off faster and saves substantially in total interest, but the higher monthly payment can strain a budget. A 30-year mortgage has lower required payments, giving you more cash flow flexibility — you can always pay extra when you’re able. Most first-time buyers choose 30 years for the flexibility and refinance later if rates drop. Run both options in the calculator to compare your total interest paid.
Is this the same as mortgage pre-approval?
No. This is a planning tool — it estimates your payment based on inputs you provide. Pre-approval is a formal process where a lender reviews your credit, income, assets, and debt to determine how much they’re willing to lend. Use this calculator first to set your own budget, then compare that number against what a lender pre-approves. They are not the same number, and you should not automatically spend up to what you’re pre-approved for.
What is amortization?
Amortization is how your loan payment is split between principal and interest over time. Early in the loan, most of your payment goes to interest. Later, more goes to principal. By the end of a 30-year mortgage, almost your entire payment is reducing the balance. The amortization summary in this calculator shows how your balance drops each year so you can see this effect.
Sources
- Consumer Financial Protection Bureau — Owning a Home
- U.S. Department of Housing and Urban Development — Buying a Home
- Freddie Mac — Primary Mortgage Market Survey (weekly rate data)
About the Author
Nolan Briggs — Founder, Up From Zero HQ
Nolan Briggs spent years working a regular job while carrying more debt than he knew how to handle. No finance degree. No safety net. Just a lot of bad decisions and a determination to dig out of them the hard way. After paying off tens of thousands in debt and rebuilding his finances from scratch, he started Up From Zero to give other working people the plain-English money education he wished he had. Everything on this site is built for beginners — no jargon, no get-rich promises, and no shame. Just real systems that actually work for people working real jobs. Not a licensed financial advisor — everything here is plain-English education based on publicly available information, personal experience, and primary sources like the IRS, CFPB, and HUD.