Mortgage Payment Calculator
Your true monthly payment is more than principal and interest. Add property tax, homeowner's insurance, PMI, and HOA to see the full PITI — plus total interest and a year-by-year payoff schedule.
Your monthly payment
Amortization schedule (by year)
| Year | Paid | Principal | Interest | Balance |
|---|
How it works
The principal-and-interest slice uses the standard amortization formula: M = P·r(1+r)ⁿ / ((1+r)ⁿ−1), where P is the loan amount, r the monthly interest rate, and n the number of payments. For example, a $400,000 loan at 6.5% for 30 years gives about $2,528/month in principal and interest alone.
Then comes everything else, together called PITI — principal, interest, taxes, insurance — plus PMI and HOA where they apply. Property tax and insurance are usually collected monthly into an escrow account and paid out by your servicer; they change over time, which is why your "fixed" payment can still creep up year to year.
The amortization schedule shows a truth most buyers miss: early payments are mostly interest. In year one of that $400,000 loan, roughly 80% of each payment is interest. Extra principal payments attack the balance directly and cut total interest fast — even one extra payment a year can shave years off a 30-year loan.
Frequently asked questions
How is a mortgage payment calculated?
The principal-and-interest portion uses the amortization formula M = P·r(1+r)ⁿ/((1+r)ⁿ−1), where P is the loan amount, r the monthly rate, and n the number of payments. Taxes, insurance, PMI, and HOA are then added to get the full monthly payment.
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four core parts of a mortgage payment. HOA dues and PMI/MIP are often added on top.
Why is most of my early payment interest?
Because interest is charged on the outstanding balance each month. Early on the balance is largest, so interest takes the biggest share; as you pay down principal, the split gradually reverses.
How much does 1% in rate change my payment?
On a $400,000 30-year loan, each 1% of rate is roughly $250–$270 per month in principal and interest — and tens of thousands in total interest over the life of the loan.
When does PMI drop off?
On conventional loans, PMI typically cancels automatically at 78% loan-to-value based on the original amortization schedule, and you can request removal at 80% with a good payment history.
Is the amortization schedule exact?
It's exact for a fixed-rate loan with no extra payments, assuming taxes and insurance stay constant. Real escrow amounts change yearly as tax and insurance bills change.
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