Calculate your monthly mortgage payment, total interest, full amortization schedule, and compare scenarios with down payment, property tax, insurance, and PMI estimates.
Total Monthly Payment
$1,916.96
30-year fixed rate at 6.5%
Principal & Interest
$1,516.96
Property Tax
$300.00
Insurance
$100.00
$240,000
Loan Amount
$60,000 (20%)
Down Payment
$306,107
Total Interest
$690,107
Total Cost
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. Understanding mortgage calculations is essential for one of the biggest financial decisions most people make in their lifetime.
Your monthly mortgage payment consists of four components, commonly known as PITI: Principal (the loan amount being repaid), Interest (the cost of borrowing), Taxes (property taxes collected monthly), and Insurance (homeowner's insurance and potentially PMI).
The interest rate has an enormous impact on total cost. On a $300,000 30-year mortgage, a 1% rate difference (6% vs 7%) means paying approximately $70,000 more in total interest over the life of the loan. Even a 0.25% difference can save or cost tens of thousands.
A larger down payment reduces your loan amount, monthly payment, and total interest — and if you put down 20% or more, you avoid Private Mortgage Insurance (PMI), which typically costs 0.5-1% of the loan annually. PMI protects the lender, not you, and adds to your monthly cost until you reach 20% equity.
Choosing between a 15-year and 30-year term involves a trade-off: 15-year mortgages have higher monthly payments but dramatically lower total interest (often less than half), while 30-year mortgages offer lower monthly payments but cost significantly more over time.