Calculating payment...
The result will show monthly payment, interest, payoff date, and an amortization chart.
This mortgage and loan payment calculator estimates the monthly cost of a fixed-rate amortizing loan. It separates the principal-and-interest payment from optional property tax, homeowners insurance, HOA dues, and PMI so you can see the difference between the loan payment and the broader monthly housing payment.
The amortization schedule shows how each payment is split between interest and principal over time. Early payments on a long mortgage are usually interest-heavy; later payments shift more heavily toward principal as the balance falls.
A fixed-rate mortgage uses the standard amortizing loan formula:
M = P x r x (1 + r)n / ((1 + r)n - 1)
The calculator turns loan inputs into a payment, then expands that payment into an amortization schedule.
With a fixed payment, the interest portion is largest at the beginning because it is calculated from the outstanding balance. As the balance falls, less interest accrues each month and more of the same payment goes toward principal.
This is why the first-year schedule matters. It shows whether your early payments are mostly reducing debt or mostly paying interest.
Property taxes, homeowners insurance, HOA dues, and PMI are entered as flat estimates. Real costs can change every year. A lender's escrow account may also adjust after tax reassessments, insurance renewals, shortage payments, or policy changes.
PMI is estimated as either a fixed monthly amount or an annual percentage of the starting loan amount. This calculator does not automatically cancel PMI. In real mortgage servicing, cancellation can depend on loan type, payment history, original value, current value, and federal or investor rules.
A shorter term usually means a higher monthly payment but much less lifetime interest. A longer term usually lowers the monthly payment but keeps the balance outstanding for longer, so total interest can be much higher even when the interest rate is similar.
For official consumer guidance, compare this estimate with resources from the Consumer Financial Protection Bureau homebuying guide, the CFPB Loan Estimate explainer, and the Federal Reserve mortgage information.
The principal-and-interest payment uses the fixed-rate amortization formula based on loan amount, monthly interest rate, and total number of payments. Optional monthly tax, insurance, HOA, and PMI estimates are then added separately.
Yes, if you enter them. Annual property tax and annual homeowners insurance are divided by 12 and added to the monthly estimate.
An amortization schedule is a payment-by-payment table showing how much of each payment goes to interest, how much goes to principal, and what balance remains.
Interest is calculated from the remaining balance. At the start, the balance is near the original loan amount, so the interest portion is larger.
No. This is an educational calculator. A lender's official Loan Estimate can include APR, fees, escrow rules, prepaid costs, and underwriting terms that are not modeled here.
No. PMI is treated as a flat monthly estimate across the selected term. Real PMI cancellation rules vary by loan type and lender servicing requirements.