Currency

Home Price

Down Payment

Loan Term (Years)

Annual Interest Rate (%)

Monthly Tax (Opt)

Monthly Ins. (Opt)

Monthly Payment (Total)

$0.00

Principal & Interest (P&I) $0.00

Taxes & Insurance $0.00

Loan Amount $0.00

Total Interest Paid $0.00

Total of All Payments $0.00

Principal

Interest

How is it calculated?

The standard formula used to calculate the monthly principal and interest payment is:

M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]

M = Total monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in years multiplied by 12)

Examples

Starter Home

Price: $200,000
Down: 10%
Rate: 5.5% (30 Yr)
Payment: $1,022/mo

Family Home

Price: $450,000
Down: 20%
Rate: 6.0% (30 Yr)
Payment: $2,158/mo

Short Term Loan

Price: $300,000
Down: 20%
Rate: 5.0% (15 Yr)
Payment: $1,897/mo

Frequently Asked Questions

What is PMI?

Private Mortgage Insurance (PMI) is usually required if your down payment is less than 20%. It protects the lender in case you default on your loan.

Should I choose a 15-year or 30-year term?

A 15-year term has higher monthly payments but saves you significant interest over the life of the loan. A 30-year term offers lower, more manageable monthly payments.

What happens if I make extra payments?

Extra payments go directly toward your principal balance, which reduces the total interest you'll pay and can shorten your loan term.

Are property taxes and insurance included?

Most lenders require you to pay taxes and insurance through an escrow account, adding them to your monthly mortgage bill.

Amortization Schedule