TakeHomeTally

Mortgage calculator

The full monthly cost of a home, not just the loan, and how the balance falls each year.

Only charged under 20% down.
Monthly paymentLoan $320,000

Total each month

$2,539.28

Total interest over the loan: $408,142

Principal & interest$2,022.62
Property tax$366.67
Homeowners insurance$150.00
PMI$0.00
HOA$0.00
Total$2,539.28

Amortization by year

Early payments are mostly interest. Watch the principal column grow as the balance falls.

YearPrincipal paidInterest paidBalance
1$3,577$20,695$316,423
2$3,816$20,455$312,607
3$4,072$20,200$308,535
4$4,345$19,927$304,191
5$4,636$19,636$299,555
6$4,946$19,325$294,609
7$5,277$18,994$289,332
8$5,631$18,641$283,701
9$6,008$18,264$277,694
10$6,410$17,861$271,284
11$6,839$17,432$264,444
12$7,297$16,974$257,147
13$7,786$16,485$249,361
14$8,308$15,964$241,053
15$8,864$15,407$232,189
16$9,458$14,814$222,732
17$10,091$14,180$212,641
18$10,767$13,505$201,874
19$11,488$12,784$190,386
20$12,257$12,014$178,129
21$13,078$11,193$165,051
22$13,954$10,317$151,097
23$14,888$9,383$136,208
24$15,886$8,386$120,323
25$16,949$7,322$103,373
26$18,085$6,187$85,289
27$19,296$4,976$65,993
28$20,588$3,683$45,405
29$21,967$2,305$23,438
30$23,438$833$0

The payment formula

M = P × r(1 + r)n ÷ ((1 + r)n − 1)

P is the loan amount, r the monthly rate (annual rate ÷ 12) and n the number of monthly payments. Taxes, insurance, PMI and HOA are added on top.

Frequently asked questions

What is included in a mortgage payment?

Principal and interest on the loan, plus usually property tax and homeowners insurance collected into escrow. Some loans add HOA dues and private mortgage insurance (PMI). Together these are often called PITI.

When do I pay PMI?

Conventional loans usually require PMI when the down payment is under 20% of the price. It typically costs 0.3% to 1.5% of the loan a year and can be removed once you reach 20% equity.

How much house can I afford?

A common guideline is to keep the total housing payment under about 28% of gross monthly income and all debt payments under about 36%. Lenders look at your full credit profile, so treat these as starting points.

15-year or 30-year mortgage?

A 15-year loan has a higher monthly payment but usually a lower rate and far less total interest. A 30-year loan keeps the payment lower and leaves more room in your budget; you can still pay extra to finish early.

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