Ledgerly
Ad slot

Mortgage Payment Calculator

A mortgage payment is the fixed monthly amount that pays off a home loan and its interest. Enter the loan amount, the yearly rate and the loan length below. You get the monthly payment, the total interest and a year-by-year view of the balance.

Every figure comes from the standard loan formula, so you can check it by hand. The extra payment box shows how a small monthly top-up changes the payoff date.

$
%
years
$
Monthly payment
$1,693.22
Total interest
$334,560
Total paid
$609,560
Year by year
YearPrincipal paidInterest paidBalance left
1$3,222$17,096$271,778
2$3,430$16,889$268,348
3$3,650$16,668$264,698
4$3,885$16,434$260,812
5$4,135$16,184$256,677
6$4,401$15,918$252,276
7$4,684$15,635$247,592
8$4,985$15,333$242,607
9$5,306$15,013$237,301
10$5,647$14,671$231,654
11$6,011$14,308$225,643
12$6,397$13,922$219,246
13$6,809$13,510$212,437
14$7,247$13,072$205,191
15$7,713$12,606$197,478
16$8,209$12,110$189,269
17$8,737$11,582$180,533
18$9,299$11,020$171,234
19$9,897$10,422$161,337
20$10,533$9,785$150,803
21$11,211$9,108$139,592
22$11,932$8,387$127,660
23$12,700$7,619$114,961
24$13,516$6,802$101,444
25$14,386$5,933$87,058
26$15,311$5,007$71,747
27$16,296$4,023$55,451
28$17,344$2,974$38,107
29$18,460$1,859$19,647
30$19,647$671$0
Ad slot

How the payment is worked out

Think of the payment as the amount that makes all 360 future payments worth exactly $275,000 at the start with a monthly rate of 0.5208 percent. Written out it is the loan times the monthly rate, divided by one minus one over one plus the monthly rate, raised to the power of 360.

Ad slot

Worked example

Take a loan of $275,000 at 6.25 percent over 30 years. The monthly payment is $1,693.22. Over 360 payments you would pay $609,560 in total, with $334,560 of that as interest.

Put another way, the interest adds about 122 cents for every dollar borrowed. That is why the loan length and the rate matter so much to the total cost.

Questions about this calculator

What does a mortgage payment include?

This calculator covers principal and interest only. Lenders often add property tax, home insurance and sometimes mortgage insurance to the monthly bill, so the amount you actually pay can be higher.

Why does so much of the early payment go to interest?

Interest is charged on the full balance. In the first month of the example, $1,432.29 of the $1,693.22 payment is interest. As the balance falls the interest part shrinks and more of each payment goes to principal.

How much does one point of rate change the payment?

On the example loan, a rate one point higher gives a payment of $1,875.98 and a rate one point lower gives $1,518.56. Try your own numbers in the calculator to see the gap for your loan.

Can I pay a mortgage off early?

Most loans allow it, but terms differ, so check the loan paperwork for any prepayment fee. Extra money sent toward principal shortens the loan. Use the extra payment box above to see the effect.

Related calculators

This page is for education only and is not financial or tax advice.