How is the monthly mortgage payment calculated?

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]. P = loan amount, r = monthly rate, n = months.

Loan-to-value = loan amount ÷ home price × 100. LTV above 80% typically requires PMI.

Do extra payments really save money?

Yes — extra payments reduce principal faster, causing less interest to accrue. Even $100/month extra can save tens of thousands.

Does this include taxes and insurance?

No — principal and interest only. Add property tax, insurance, and PMI for total PITI.

How is the payoff date calculated?

The calculator starts from the current month and counts forward by the number of payment periods (fewer with extra payments).

Finance

Mortgage payment & payoff calculator

Enter your home price, down payment, rate, and term to see your monthly payment, total interest, payoff date, and full amortization schedule. Add extra monthly payments to instantly see how much time and money you save. Includes equity chart and CSV export.

Monthly payment LTV & loan amount Payoff date Extra payment savings Equity build-up chart CSV export

Mortgage Calculator

Payment, payoff date & amortization schedule

Currency

Home Price

Down Payment LTV —%

Annual Interest Rate

% / year

Loan Term

years

Extra Monthly Payment (optional)

Monthly Payment

—

Loan amount

—

Total interest

—

Total paid

—

Payoff date

Total Cost Breakdown

Principal

Interest

Balance & Equity Over Time

Remaining balance

Home equity

Balance (with extra payment)

Amortization Schedule

#	Payment	Principal	Interest	Balance	Equity

—

Mortgage Calculator — Payments, Amortization & Payoff

This free mortgage calculator computes your monthly principal and interest payment from the home price, down payment amount, annual interest rate, and loan term. It also shows your loan-to-value ratio (LTV), estimated payoff date, total interest paid, and a complete month-by-month amortization schedule.

The extra payment feature lets you see exactly how much time and interest you save by paying more each month. Enter any extra amount and the calculator shows a side-by-side comparison: original payoff vs accelerated payoff, with total interest saved.

Mortgage Payment Formula

Monthly Payment (M)

M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ − 1]

P = Loan amount · r = Monthly rate (annual ÷ 12)
n = Term in months

Loan amount = Home price − Down payment. LTV = Loan amount ÷ Home price × 100. PMI is typically required when LTV > 80% (not included in this estimate).

Loan-to-Value Ratio (LTV) Explained

LTV is the ratio of your loan amount to the home's purchase price, expressed as a percentage. It directly affects your mortgage rate and whether you need private mortgage insurance (PMI).

≤ 80%

No PMI required

Best rates; you have 20%+ equity from day one.

80–90%

PMI likely required

Higher monthly cost until LTV drops below 80%.

> 90%

High LTV

Higher rates, mandatory PMI, limited lender options.

Impact of Extra Monthly Payments

Extra payments on a $300,000 mortgage at 6.5% over 30 years (monthly compounding):

Extra / month	Payoff time	Time saved	Interest saved
$0 (standard)	30 years	—	—
$100	26 yr 10 mo	3 yr 2 mo	$40,185
$200	24 yr 5 mo	5 yr 7 mo	$68,034
$500	20 yr 1 mo	9 yr 11 mo	$119,132
$1,000	15 yr 8 mo	14 yr 4 mo	$178,006

Frequently Asked Questions

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]. P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the term in months. The result covers principal and interest only — taxes, insurance, and PMI are not included.

LTV (loan-to-value) is your loan amount divided by the home price, expressed as a percentage. At LTV above 80%, most lenders require private mortgage insurance (PMI), which adds to your monthly cost. Lower LTV generally means better rates. You can eliminate PMI by reaching 20% equity — either through a larger down payment or by paying down the principal.

Extra payments go directly toward reducing the principal balance, which means less interest accrues in subsequent periods. This compounds over time: a $200 extra payment on a $300,000 / 30-year / 6.5% mortgage saves over $68,000 in interest and pays off the loan nearly 6 years early.

No — this calculator estimates principal and interest only. Your actual monthly PITI payment (principal, interest, taxes, insurance) will be higher. Property tax varies by location, homeowners insurance typically costs 0.5–1% of home value per year, and PMI (if required) is usually 0.2–1.5% of the loan per year.

Amortization is the process of spreading a loan into a series of fixed payments. Early in the mortgage, most of the payment covers interest. Over time, as the principal balance falls, less interest accrues and more of each payment reduces the principal. By the final payment, almost the entire amount goes to principal.

The calculator starts from the current month and adds the total number of payment periods (or fewer periods if extra payments are made). With extra payments, the balance reaches zero earlier than the scheduled term — the month it would do so is shown as the accelerated payoff date.

80% or below is considered ideal — it means you have a 20% down payment, avoids PMI, and typically qualifies for the best interest rates. LTV of 90–95% is common for first-time buyers using FHA or conventional loans with mortgage insurance. Above 97% is unusual and typically only available through specific government programs.

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