Calculate your monthly payment, total interest, and view a full amortization schedule for any loan or mortgage.
| Year | Payment | Principal | Interest | Balance |
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Your monthly mortgage payment is determined by three factors: the loan amount (purchase price minus your down payment), the interest rate, and the loan term. The standard formula uses these inputs to calculate a fixed monthly payment that covers both principal and interest over the life of the loan.
What surprises most first-time homebuyers is how much of each early payment goes toward interest rather than paying down the principal. On a 30-year $240,000 mortgage at 6.5%, your first monthly payment of $1,517 splits roughly $1,300 to interest and only $217 to principal. This ratio gradually shifts over time — a process called amortization — until the final years when most of each payment goes to principal.
This is why the amortization schedule matters. It shows you exactly how much of each payment goes to principal versus interest, year by year. It also reveals the total interest you will pay over the life of the loan, which on a 30-year mortgage often exceeds the original loan amount. Use this calculator to compare different down payments, rates, and terms to find the right balance for your budget.