Monthly Payment

Total Payment

Total Interest

30-year shortcut: dedicated 30-year calculator. More: home, car, personal, interest.

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How mortgage principal and interest work

A standard fixed-rate mortgage pays down the loan in equal monthly installments. Each payment is split between interest on the remaining balance and principal. At the start, interest takes a larger share; near the end, almost everything goes to principal.

The core drivers are loan amount, annual interest rate, and term in months. For example, 360 months is a 30-year loan and 180 months is 15 years. LoanWise uses the same amortization approach as our main loan calculator, so you can line this up beside a personal loan calculator or car loan calculator scenario.

What this estimate leaves out

Many homeowners pay property tax, homeowners insurance, and sometimes mortgage insurance or HOA fees every month through escrow. Those are not included here. Closing costs, points, and lender credits also sit outside this simple payment model.

If your loan wraps certain fees into the balance, you can add them to the amount field for a closer match. Otherwise treat the output as principal-and-interest only and budget the rest separately.

Using the numbers when you shop

Try a few rate and term combinations to see how sensitive your payment is to small changes. Even a quarter-point on a large balance can matter over decades. Compare the lender’s quoted rate to what you enter here to sanity-check paperwork.

Small-business borrowers can model term debt with our business loan calculator. If you want simple-interest examples alongside amortization, open the simple interest calculator.

Frequently asked questions

Does this include escrow for taxes and insurance?
No. You only see principal and interest. Your real housing payment is often higher when escrow and other items are billed monthly.
How do I enter a 15- or 30-year mortgage?
Use months: 180 for 15 years, 360 for 30. Any term your lender offers works as long as you convert years × 12.
Is the interest rate the same as APR?
Not always. APR bundles in some costs and is meant to help compare offers. For this calculator, use the loan’s stated interest rate used in the amortization schedule.
Can I model an ARM?
This page assumes the rate stays fixed for the entire term. For an ARM, use the initial fixed years only, or rerun the math when the rate resets.
Should I put less down if the payment is high?
A smaller down payment can raise the loan amount and may trigger mortgage insurance. Weigh monthly cash flow against total interest and insurance cost over time.