Mortgage Calculator
Your mortgage payment is more than principal and interest — taxes and insurance often add hundreds a month. This calculator breaks down the true monthly cost and charts your amortization schedule.
Monthly Payment
$2,573
incl. taxes & insurance
Principal & Interest
$2,023
per month
Total Interest Paid
$408,142
Total Cost of Home
$1,006,142
over 30 years
Loan Balance Over Time
Cumulative Principal vs. Interest
Assumptions & limitations
- Fixed-rate, fully amortizing loan with payments at the end of each month.
- PMI, HOA dues, closing costs, and rate changes are not included.
- Property taxes and insurance are held constant — in reality they usually rise over time.
Monthly payment (amortization)
M = L × [r(1 + r)^n] / [(1 + r)^n − 1]L is the loan amount, r the monthly rate (annual ÷ 12), and n the number of monthly payments. Taxes and insurance are added as 1/12 of their annual amounts.
How It Works
- 1Early payments are mostly interest; the principal share grows every month as the balance falls.
- 2A 15-year loan carries a higher payment but slashes lifetime interest by more than half.
- 3Putting less than 20% down usually adds PMI — budget roughly 0.5–1% of the loan per year until you reach 20% equity.
Frequently Asked Questions
How much house can I afford?
A common guideline is total housing costs below 28% of gross income and total debt payments below 36% (the "28/36 rule").
Should I pay extra principal?
Extra principal payments shorten the loan dramatically — one extra payment per year on a 30-year mortgage typically cuts 4–6 years.
Is a 15-year loan worth it?
If you can comfortably afford the higher payment, you save enormously on interest and often get a lower rate. The tradeoff is reduced monthly flexibility.
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