Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and view a full amortization schedule.
A $240,000 mortgage at 6.5% for 30 years = $1,517/month
Payment Breakdown
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,517 | $217 | $1,300 | $239,783 |
| 2 | $1,517 | $218 | $1,299 | $239,565 |
| 3 | $1,517 | $219 | $1,298 | $239,346 |
| 4 | $1,517 | $221 | $1,296 | $239,125 |
| 5 | $1,517 | $222 | $1,295 | $238,903 |
| 6 | $1,517 | $223 | $1,294 | $238,680 |
| 7 | $1,517 | $224 | $1,293 | $238,456 |
| 8 | $1,517 | $225 | $1,292 | $238,231 |
| 9 | $1,517 | $227 | $1,290 | $238,004 |
| 10 | $1,517 | $228 | $1,289 | $237,777 |
| 11 | $1,517 | $229 | $1,288 | $237,548 |
| 12 | $1,517 | $230 | $1,287 | $237,317 |
Frequently Asked Questions
What is a mortgage?
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. The borrower repays the loan over a set term (typically 15 or 30 years) with regular monthly payments that include both principal and interest.
How is monthly payment calculated?
The monthly payment is calculated using the formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. This ensures each payment covers interest on the remaining balance plus a portion of the principal.
What's the difference between 15 and 30 year mortgages?
A 15-year mortgage has higher monthly payments but significantly lower total interest costs. A 30-year mortgage offers lower monthly payments, making it more affordable month-to-month, but you pay much more in interest over the life of the loan. For example, a $240,000 loan at 6.5% costs about $2,092/month over 15 years (total interest ~$136,500) versus $1,517/month over 30 years (total interest ~$306,100).
How does interest rate affect my payment?
Even small changes in interest rate can significantly impact your monthly payment and total cost. For a $240,000 30-year mortgage, going from 6% to 7% increases the monthly payment by about $160 and adds over $57,000 in total interest over the life of the loan.