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Estimate monthly mortgage payments, interest, and amortization schedules.
Monthly Payment (P&I)
$1,517
Loan Amount
$240,000
Total Interest
$306,107
Total Cost
$546,107
| Year | Begin Balance | Payment | Principal | Interest | End Balance |
|---|---|---|---|---|---|
| 1 | $240,000 | $18,204 | $2,683 | $15,521 | $237,317 |
| 2 | $237,317 | $18,204 | $2,862 | $15,341 | $234,455 |
| 3 | $234,455 | $18,204 | $3,054 | $15,150 | $231,401 |
| 4 | $231,401 | $18,204 | $3,258 | $14,945 | $228,143 |
| 5 | $228,143 | $18,204 | $3,477 | $14,727 | $224,666 |
| 6 | $224,666 | $18,204 | $3,709 | $14,494 | $220,957 |
| 7 | $220,957 | $18,204 | $3,958 | $14,246 | $216,999 |
| 8 | $216,999 | $18,204 | $4,223 | $13,981 | $212,776 |
| 9 | $212,776 | $18,204 | $4,506 | $13,698 | $208,270 |
| 10 | $208,270 | $18,204 | $4,808 | $13,396 | $203,463 |
| 11 | $203,463 | $18,204 | $5,130 | $13,074 | $198,333 |
| 12 | $198,333 | $18,204 | $5,473 | $12,731 | $192,860 |
| 13 | $192,860 | $18,204 | $5,840 | $12,364 | $187,021 |
| 14 | $187,021 | $18,204 | $6,231 | $11,973 | $180,790 |
| 15 | $180,790 | $18,204 | $6,648 | $11,556 | $174,142 |
| 16 | $174,142 | $18,204 | $7,093 | $11,110 | $167,049 |
| 17 | $167,049 | $18,204 | $7,568 | $10,635 | $159,481 |
| 18 | $159,481 | $18,204 | $8,075 | $10,128 | $151,405 |
| 19 | $151,405 | $18,204 | $8,616 | $9,588 | $142,790 |
| 20 | $142,790 | $18,204 | $9,193 | $9,011 | $133,597 |
| 21 | $133,597 | $18,204 | $9,809 | $8,395 | $123,788 |
| 22 | $123,788 | $18,204 | $10,465 | $7,738 | $113,323 |
| 23 | $113,323 | $18,204 | $11,166 | $7,037 | $102,156 |
| 24 | $102,156 | $18,204 | $11,914 | $6,289 | $90,242 |
| 25 | $90,242 | $18,204 | $12,712 | $5,491 | $77,530 |
| 26 | $77,530 | $18,204 | $13,563 | $4,640 | $63,967 |
| 27 | $63,967 | $18,204 | $14,472 | $3,732 | $49,495 |
| 28 | $49,495 | $18,204 | $15,441 | $2,763 | $34,054 |
| 29 | $34,054 | $18,204 | $16,475 | $1,728 | $17,579 |
| 30 | $17,579 | $18,204 | $17,579 | $625 | $0 |
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A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. Understanding how mortgage payments are calculated helps you make smarter decisions about one of the largest financial commitments of your life.
Monthly payment (M) is calculated using this formula:
M = P × [r(1+r)n] / [(1+r)n - 1]
Where P = principal (loan amount), r = monthly interest rate (annual rate / 12), and n = total number of payments (years × 12).
An amortization schedule shows how each payment is split between principal and interest over the life of the loan. In the early years, most of your payment goes toward interest. Over time, the balance shifts so more goes toward principal.
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $3,600 | $14,400 | $296,400 |
| 10 | $6,200 | $11,800 | $254,000 |
| 20 | $10,800 | $7,200 | $156,000 |
| 30 | $17,600 | $400 | $0 |
Example based on a $300,000 loan at 4.8% over 30 years. Figures are approximate annual totals.
Lenders use DTI to determine how much you can borrow. DTI = total monthly debt payments / gross monthly income.
Fixed-rate mortgages keep the same interest rate for the entire loan term (15 or 30 years). Your payment never changes. Adjustable-rate mortgages (ARMs) start with a lower rate for an initial period (usually 5 or 7 years), then adjust annually based on market rates. ARMs can save money if you plan to sell or refinance before the adjustment period.
Adding just $100/month to your payment on a $300,000 mortgage at 4.8% saves over $40,000 in interest and pays off the loan 4+ years early. Even one extra payment per year shaves years off the loan. Use our compound interest calculator to see how extra payments compound over time, and check the debt payoff calculator to model different payoff strategies.
Monthly payment = P[r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments.
A basic mortgage payment includes principal and interest (P&I). Your actual payment may also include property taxes, homeowners insurance, and PMI (Private Mortgage Insurance) if your down payment is less than 20%.
A longer loan term (e.g., 30 years vs 15 years) results in lower monthly payments but significantly more total interest paid over the life of the loan.
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