Mortgage Calculator
Calculate your full monthly payment (PITI + HOA), view the year-by-year amortization schedule, and see how extra payments save you thousands in interest.
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Everything you need to know about your mortgage
Understanding Your Mortgage Payment
A mortgage is likely the largest debt you'll ever take on. Understanding how each component of your payment works — and how extra payments can save you tens of thousands — is essential to being a smart homeowner.
The Amortization Schedule
Amortization is the process of spreading your loan payments over time. In the early years, most of your payment goes toward interest rather than principal. For a $320,000 loan at 6.5% over 30 years, your first payment is about $1,494 in interest and only $529 toward principal. By year 15, the split is roughly equal. By year 25, most of your payment goes to principal. This is why building equity takes time — and why extra payments early in the loan have the biggest impact.
The Power of Extra Payments
Adding as little as $100 per month to your principal payment can save $60,000+ in interest and shorten your 30-year mortgage by 5+ years. This works because early extra payments reduce the principal balance that future interest is calculated on. Even one extra payment per year (dividing your monthly payment by 12 and adding it each month) can save 3–4 years and tens of thousands in interest.
Understanding PMI
Private Mortgage Insurance protects the lender, not you. It's required when your down payment is under 20% of the home's purchase price. PMI typically costs 0.3% to 1.5% of the loan amount annually — on a $300,000 loan, that's $75–$375 per month. PMI automatically cancels when your loan balance reaches 78% of the original home value. You can request cancellation at 80% equity. Making extra payments accelerates PMI removal.
PITI + HOA: The Full Picture
Lenders evaluate your mortgage readiness using PITI: Principal (paying down the loan), Interest (cost of borrowing), Taxes (property taxes), and Insurance (homeowners insurance). Then add PMI (if applicable) and HOA (if applicable). Most lenders want your total PITI to be under 28% of gross monthly income, and total debt (PITI + other loans) under 36%. This is the 28/36 rule.
Frequently Asked Questions
Your monthly payment typically includes PITI: Principal (paying down the loan balance), Interest (the cost of borrowing), Taxes (property taxes paid into escrow), and Insurance (homeowners insurance). With under 20% down, PMI is added. HOA fees may apply for condos or planned communities. This calculator includes all of these for a complete picture.
Amortization means your payments are fixed but the split between principal and interest changes over time. In year 1, ~75% of your payment goes to interest. By year 15, it's about 50/50. By year 25, most goes to principal. The amortization schedule shows this year by year. This front-loading of interest is why extra payments early have such a large impact.
Extra payments save substantial interest. On a $350,000 loan at 6.5%: $50/month extra saves ~$53,000 and pays off 3.4 years early. $100/month extra saves ~$87,000 and pays off 5.7 years early. $200/month extra saves ~$130,000 and pays off 9 years early. The earlier you start extra payments, the more you save.
PMI automatically terminates on the date your loan balance reaches 78% of the original home value. You can request cancellation once your balance reaches 80% of the original value, but you must be current on payments and have a good payment history. Making extra payments accelerates PMI removal. For FHA loans with less than 10% down, MIP (Mortgage Insurance Premium) stays for the life of the loan.
A 15-year mortgage has higher monthly payments but lower rates (typically 0.5–1% lower) and you build equity twice as fast — total interest is about 60% less than a 30-year loan. A 30-year mortgage has lower monthly payments, giving you more cash flow for other goals like investing, but you pay significantly more interest. A middle ground: get a 30-year loan and make extra principal payments when you can.
Escrow is an account your lender manages to pay property taxes and homeowners insurance on your behalf. Each month, 1/12 of your annual taxes and insurance are added to your mortgage payment and held in escrow. When the bills come due, the lender pays them from this account. Escrow ensures taxes and insurance are paid on time and protects the lender's investment in your property.