Remaining loan balanceBy loan year
Finance & Money
Mortgage Calculator
Build a detailed home financing estimate from purchase price, down payment, interest rate, loan term, property tax, homeowners insurance, and HOA fees. Review the monthly obligation, lifetime interest, total cash outflow, and loan-to-value ratio before exporting a professional PDF analysis.
Monthly principal & interest$2,216.00
Estimated monthly housing cost$2,816.00
Financed principal$360,000.00
Total interest$437,760.00
Total loan repayment$797,760.00
Loan-to-value ratio80%
Interest saved with extra payments$0.00
Time saved0 months
Estimated payoff date-
Lifetime principal vs. estimated interest
Amortization analysis
How the loan changes over time
Scheduled With extra payment
Cumulative principal and interest Principal Interest
| Year | Opening balance | Payments | Principal | Interest | Extra | Ending balance |
|---|
| Payment | Date | Opening balance | Payment | Principal | Interest | Extra | Ending balance |
|---|
Payment calendar
Plan each mortgage payment date
Review one loan year at a time. The highlighted date is a planning date; amortization remains monthly.
How to use Mortgage Calculator
- Enter the home price, down payment, fixed interest rate, loan term, and loan start month. Add property tax, homeowners insurance, HOA fees, and any planned extra principal payment to make the housing-cost estimate reflect the scenario you want to review.
- Read the headline results separately: monthly principal and interest is the scheduled loan payment, while estimated monthly housing cost also includes the entered tax, insurance, and HOA amounts.
- Use the balance and cumulative-cost charts to see how the loan changes, then switch between the yearly schedule and monthly schedule to inspect principal, interest, extra payments, payment dates, and the remaining balance.
- In the payment calendar, select a loan year, choose the intended payment day, and decide how weekend dates should be handled. The highlighted dates are planning dates and do not change the amortization calculation.
- Use Download professional PDF for the complete mortgage analysis, or Export selected calendar PDF for a standalone 12-month payment calendar. Copy result captures the key figures, and Reset restores the calculator defaults.
Mortgage fundamentals
What a mortgage payment can include
A complete housing budget can contain more than the amount repaid to the lender. This calculator separates the fixed-rate loan payment from recurring ownership costs so you can see what each figure represents.
Included in estimated monthly housing cost: principal, interest, entered property tax, entered homeowners insurance, and HOA fees. Escrow timing, PMI, utilities, repairs, and other ownership costs are not included.
Calculation method
How mortgage payments are calculated
The financed principal equals the home price minus the down payment. For a fixed-rate, fully amortizing loan, one principal-and-interest payment is calculated to reduce that balance to zero over the selected number of months, assuming every payment is made as scheduled.
M = P × r(1+r)n ÷ ((1+r)n - 1) M is the monthly principal-and-interest payment, P is financed principal, r is the monthly interest rate, and n is the number of monthly payments.
- A higher interest rate normally increases both the monthly payment and lifetime interest.
- A longer term normally lowers the required monthly payment but increases total interest.
- A larger down payment reduces financed principal and loan-to-value ratio.
- Taxes, insurance, and HOA fees affect the housing budget but do not change loan amortization.
Reading the schedule
How amortization changes over time
Each row begins with an opening balance. Interest is calculated first, then the remaining payment reduces principal. The ending balance becomes the next month's opening balance.
- Early years: interest usually represents a larger share because the balance is high.
- Later years: more of the same scheduled payment generally reaches principal.
- Extra: additional principal accelerates the balance decline when applied correctly.
- Cumulative totals: show how much principal and interest have been paid by each year.
Faster payoff
Using extra monthly payments
The extra-payment field applies an additional amount directly to principal every month. This can reduce future interest and shorten the modeled payoff period.
- Confirm that the lender will apply the amount to principal rather than a future payment.
- Extra principal usually does not reduce the required monthly payment unless the loan is recast.
- Keep emergency savings and higher-cost debt priorities in mind before accelerating a mortgage.
- Check the note for prepayment penalties, limits, or special payment instructions.
Equity and lending risk
Down payment and loan-to-value ratio
Loan-to-value ratio (LTV) compares the financed principal with the purchase price. For example, financing $360,000 on a $450,000 home produces an 80% LTV. A larger down payment lowers both the loan amount and LTV.
Lower LTVMore initial equity Higher LTVLess initial equity
Lenders may use LTV when setting eligibility, pricing, and mortgage-insurance requirements. In many conventional U.S. loans, an LTV above 80% can be associated with PMI, but actual rules vary by lender, jurisdiction, and loan program.
Term comparison
15-year vs. 30-year mortgage
This comparison uses the home price, down payment, interest rate, tax, insurance, HOA, and start month currently entered above. It applies the same rate to both terms so the effect of term length remains clear.
| Consideration | 15-year mortgage | 30-year mortgage |
|---|---|---|
| Monthly principal and interest | $0.00 | $0.00 |
| Estimated monthly housing cost | $0.00 | $0.00 |
| Total lifetime interest | $0.00 | $0.00 |
| Total loan repayment | $0.00 | $0.00 |
| Balance after 5 years | $0.00 | $0.00 |
| Estimated final payment | - | - |
The best term depends on income stability, cash reserves, other debts, available interest rates, and long-term plans. Actual 15-year and 30-year lender offers may use different rates, APRs, fees, and qualification standards.
Worked example
Your complete mortgage calculation, step by step
This example follows the values currently entered in the calculator above and updates whenever an input changes.
Estimated lifetime interest $0.00 Total loan repayment $0.00 Interest saved with extra payments $0.00
The loan totals above exclude the down payment and non-loan ownership expenses. Tax, insurance, and HOA assumptions are included in the monthly housing estimate but are not added to total loan repayment.
Scope and limitations
What this estimate does not include
- Private mortgage insurance or government mortgage-insurance premiums
- Closing costs, discount points, origination charges, or lender fees
- Escrow reserves, prepaid interest, tax adjustments, or settlement credits
- Utilities, maintenance, repairs, renovations, or special HOA assessments
- Changes in property tax, insurance premiums, or HOA dues over time
- Adjustable-rate resets, balloon payments, refinancing, or loan modifications
Key terminology
Mortgage glossary
- APR
- A broader annualized borrowing-cost measure that can include certain fees; it is not always the same as the note rate entered here.
- Amortization
- The scheduled reduction of a loan through payments containing principal and interest.
- Escrow
- An account a servicer may use to collect and pay property tax and insurance.
- HOA
- A homeowners association that may charge recurring dues or special assessments.
- LTV
- Financed principal divided by property value or purchase price, expressed as a percentage.
- PMI
- Private mortgage insurance that may apply to some conventional loans with higher LTV.
- Principal
- The outstanding amount borrowed, excluding interest and ownership costs.
- Recast
- A lender-approved recalculation of the required payment after a substantial principal reduction.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
What does this mortgage calculator estimate?
It estimates fixed-rate principal and interest, a broader monthly housing cost using the entered property tax, homeowners insurance, and HOA fees, total loan interest, total repayment, loan-to-value ratio, payoff timing, and an amortization schedule.
Are property tax and homeowners insurance included?
Yes, when you enter annual amounts they are divided by 12 and added to the estimated monthly housing cost. They do not change the contractual principal-and-interest payment or the loan amortization.
Why is so much of an early mortgage payment interest?
Interest is calculated from the outstanding balance. Because the balance is highest at the beginning, early payments contain more interest; the principal share generally rises as the balance falls.
Does an extra payment reduce my next required payment?
Usually it reduces principal, total interest, and payoff time but does not automatically reduce the lender's required monthly payment. A formal loan recast or refinance may be needed to change that obligation.
Does the calculator include private mortgage insurance (PMI)?
No. PMI rules and pricing depend on the lender, loan program, credit profile, and loan-to-value ratio. Add any expected PMI separately when building a complete monthly budget.
Can I use this for an adjustable-rate mortgage?
Not for a full adjustable-rate projection. The model assumes one fixed interest rate for the entire term, so it cannot model future rate resets, caps, or payment changes.
Can the loan have a prepayment penalty?
Some loans may restrict or charge for early repayment. Review the note and lender instructions before relying on the extra-payment comparison.
Is the exported PDF an official lender document?
No. It is a professional planning report based on the values entered, not a loan estimate, approval, closing disclosure, appraisal, payoff statement, or binding offer.
Does Dear Calculator save my mortgage values?
No account is required and the calculation is designed to run locally in your browser. The report is generated on your device.