Mortgage Payment Calculator
Enter loan amount, rate, and term to get the monthly principal and interest payment. For a housing payment that also includes taxes, insurance, PMI, and HOA, use the Mortgage Calculator.
How principal and interest share each payment
Every payment splits between principal (what lowers the balance) and interest (the cost of borrowing). Early months lean heavily on interest. Later, as the balance shrinks, principal takes a larger share.
That pattern is amortization. Your lender statement may show a higher total because taxes, insurance, PMI, and HOA are often collected separately through escrow. See the full month-by-month split in the Amortization Calculator.
How the payment is calculated
The calculator uses the standard fixed-rate amortizing formula. You provide three inputs: loan amount (P), annual interest rate, and term in months (n). The monthly rate r equals annual rate ÷ 12 ÷ 100.
At 0% interest, the payment is simply loan amount ÷ number of payments. Full rounding rules are documented on the methodology page.
How rate and term change the payment
On the same $320,000.00 loan at 6.5%, a 15-year term raises the monthly P&I to about $2,787.54 but cuts total interest from about $408,142.36 to about $181,757.84. The tradeoff is higher monthly cash flow versus less paid to the lender over time.
Compare terms in the 15-year vs 30-year guide or view the month-by-month split in the amortization calculator.
Common misunderstanding
A lower P&I from a longer loan term does not always mean a better deal. You may pay more total interest even when the monthly bill looks affordable. The principal vs interest guide explains why early payments are mostly interest.
Assumptions
- Fixed-rate, fully amortizing loan with equal monthly payments
- No extra principal, prepayment penalties, or skipped payments
- Taxes, insurance, PMI, and HOA are not included
- Interest rate is the note rate, not APR