Monthly mortgage calculator
This monthly mortgage calculator shows your payment each month and, in the table below, how much each change would lower it.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $3,292.48 | $20,402.12 | $302,707.52 |
| 2 | $3,519.99 | $20,174.61 | $299,187.53 |
| 3 | $3,763.20 | $19,931.40 | $295,424.33 |
| 4 | $4,023.23 | $19,671.37 | $291,401.10 |
| 5 | $4,301.20 | $19,393.40 | $287,099.90 |
| 6 | $4,598.41 | $19,096.19 | $282,501.49 |
| 7 | $4,916.15 | $18,778.45 | $277,585.34 |
| 8 | $5,255.83 | $18,438.77 | $272,329.51 |
| 9 | $5,618.99 | $18,075.61 | $266,710.52 |
| 10 | $6,007.26 | $17,687.34 | $260,703.26 |
| 11 | $6,422.31 | $17,272.29 | $254,280.95 |
| 12 | $6,866.08 | $16,828.52 | $247,414.87 |
| 13 | $7,340.49 | $16,354.11 | $240,074.38 |
| 14 | $7,847.72 | $15,846.88 | $232,226.66 |
| 15 | $8,389.95 | $15,304.65 | $223,836.71 |
| 16 | $8,969.66 | $14,724.94 | $214,867.05 |
| 17 | $9,589.43 | $14,105.17 | $205,277.62 |
| 18 | $10,252.02 | $13,442.58 | $195,025.60 |
| 19 | $10,960.40 | $12,734.20 | $184,065.20 |
| 20 | $11,717.73 | $11,976.87 | $172,347.47 |
| 21 | $12,527.37 | $11,167.23 | $159,820.10 |
| 22 | $13,392.96 | $10,301.64 | $146,427.14 |
| 23 | $14,318.36 | $9,376.24 | $132,108.78 |
| 24 | $15,307.71 | $8,386.89 | $116,801.07 |
| 25 | $16,365.41 | $7,329.19 | $100,435.66 |
| 26 | $17,496.20 | $6,198.40 | $82,939.46 |
| 27 | $18,705.13 | $4,989.47 | $64,234.33 |
| 28 | $19,997.58 | $3,697.02 | $44,236.75 |
| 29 | $21,379.35 | $2,315.25 | $22,857.40 |
| 30 | $22,857.40 | $838.03 | $0.00 |
Which lever lowers the monthly payment most
A bigger down payment, a lower rate, a longer term, a cheaper house and removing PMI all reduce the monthly payment, but by very different amounts, and some cost you more in the long run. The comparison table changes one thing at a time on your own numbers, so you can see the monthly saving next to its trade-off.
Monthly payment is not the whole story
A lower monthly payment can mean a longer loan and much more total interest. Use the total-interest figure beside the payment, and prefer changes that cut the payment without stretching the term, such as a larger down payment or a lower rate.
$306,000 loan: 15-year vs 30-year
On a $306,000 mortgage, a 30-year loan at 6.7% costs $1,974.55 a month in principal and interest and $404,839 in total interest. A 15-year loan at a rate about 0.6 points lower costs $2,598.76 a month, $624.21 more, but cuts the interest to $161,778, saving $243,061. The right choice depends on whether the higher payment fits your budget with room to spare.
| Loan | Principal & interest | Total interest | Total paid |
|---|---|---|---|
| 10-year at 6.1% | $3,412.61 | $103,514 | $409,514 |
| 15-year at 6.1% | $2,598.76 | $161,778 | $467,778 |
| 20-year at 6.1% | $2,209.97 | $224,393 | $530,393 |
| 30-year at 6.7% | $1,974.55 | $404,839 | $710,839 |
What each 6.7% ± 1 point does to the payment
A one-point change in your mortgage rate moves the payment on $306,000 by roughly $207.11 a month and the lifetime interest by about $74,556 over 30 years. That is why it pays to compare several lenders on the same day.
| Rate | Principal & interest | Total interest | Difference vs 6.7% |
|---|---|---|---|
| 5.7% | $1,776.03 | $333,367 | −$71,472 |
| 6.2% | $1,874.16 | $368,692 | −$36,147 |
| 6.7% | $1,974.55 | $404,839 | +$0 |
| 7.2% | $2,077.09 | $441,755 | +$36,916 |
| 7.7% | $2,181.66 | $479,395 | +$74,556 |
Down payment and PMI on a $360,000 home
With less than 20% down, lenders charge private mortgage insurance (PMI), commonly 0.3% to 1.5% of the loan per year. This page assumes 0.7%. PMI usually ends when you reach 80% of the home's original value, which you can reach sooner with extra payments.
| Down payment | Loan amount | PMI / month | Total monthly payment |
|---|---|---|---|
| 5% ($18,000) | $342,000 | $199.50 | $2,899.68 |
| 10% ($36,000) | $324,000 | $189.00 | $2,773.03 |
| 20% ($72,000) | $288,000 | $0.00 | $2,351.73 |
What each change does to your monthly payment
Your payment is $2,646.38 a month including taxes, insurance and PMI. Changing one thing at a time shows where the real savings are, and the interest column shows what each change does to the long-term cost.
| Change | Monthly payment | Difference | Total interest |
|---|---|---|---|
| As entered | $2,646.38 | — | $404,839 |
| Down payment $20,000 higher | $2,338.83 | −$307.55 | $378,374 |
| Rate 0.5 point lower (6.2%) | $2,545.99 | −$100.39 | $368,692 |
| Home price $20,000 lower | $2,485.66 | −$160.72 | $378,374 |
| Term 40 years | $2,507.10 | −$139.28 | $574,938 |
| No PMI (20% down) | $2,351.73 | −$294.65 | $381,025 |
What income does a $360,000 home need?
Lenders often look at a front-end ratio of about 28% of gross income for housing costs. A total payment of $2,646.38 implies a gross income near $113,000 a year, and lenders also weigh your other debts, which usually must keep total payments under about 36% to 43% of income.
Year one is interest-heavy: $20,402 of interest against $3,292 of principal repaid, which is why extra payments early on have the most effect.
How fast you build equity
Equity here is the home price minus the loan balance, assuming the price stays flat. Appreciation, if any, would add to it.
| After | Loan balance | Principal repaid | Equity (flat value) |
|---|---|---|---|
| 5 years | $287,100 | $18,900 | $72,900 |
| 10 years | $260,703 | $45,297 | $99,297 |
| 15 years | $223,837 | $82,163 | $136,163 |
| 20 years | $172,347 | $133,653 | $187,653 |
Frequently asked questions
How can I lower my monthly mortgage payment?
Put more down, find a lower rate, choose a less expensive home, remove PMI when you reach 80% loan-to-value, or refinance if rates fall. A longer term lowers the payment but costs more interest.
Does the monthly payment include taxes and insurance?
Yes, in this calculator the total includes property tax, insurance, HOA and PMI, shown separately from principal and interest.
What is the monthly payment on a $306,000 mortgage?
At 6.7% over 30 years, principal and interest on $306,000 is $1,974.55. With the estimated tax, insurance, HOA and PMI above, the total comes to about $2,646.38 a month.
What is included in a monthly mortgage payment?
Principal and interest are the loan itself. Many lenders also collect property tax and homeowners insurance in escrow, and charge PMI if your down payment is under 20%. HOA dues are paid separately.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.