Mortgage Calculator Calculate monthly payments, interest savings, and payoff timeline — with extra payments analysis. ...

Mortgage Calculator

Calculate monthly payments, interest savings, and payoff timeline — with extra payments analysis.

Loan Details

Home Price ($)

Down Payment (%)

Loan Amount ($)

Interest Rate (%)

Loan Term 30 Years 15 Years 10 Years

Extra Payments (Optional)

Extra Payment ($/mo)

Start Month

Frequency Monthly Yearly One-Time

$1,505

Monthly Payment

$282,000

Total Interest

$522,000

Total Cost

30 Years

Payoff Time

Payment Breakdown (First Payment)

Balance Over Time

Amortization Schedule (First 5 Years)

Payment #	Payment	Principal	Interest	Balance
1	$1,505	$215	$1,290	$239,785
2	$1,505	$216	$1,289	$239,569
3	$1,505	$216	$1,288	$239,353
4	$1,505	$217	$1,287	$239,136
5	$1,505	$217	$1,286	$238,919
... (Full 360 payments in PDF)

How to Use This Calculator

1. Enter Basic Loan Details: Home price, down payment, interest rate, and term. The loan amount auto-calculates.
2. Analyze Standard Payment: Review your base monthly payment, total interest, and payoff timeline.
3. Test Extra Payments: Add extra principal payments to see interest savings and shortened payoff time.
4. Compare Scenarios: Try different terms (15 vs. 30 years) or interest rates to find your optimal loan.
5. Export Results: Click PDF to save a professional report, or Print for physical records.
6. Stress-Test Your Budget: Increase interest rates by 0.5–1% to ensure affordability in rising-rate environments.

Professional Mortgage Insights

In 2025, with average mortgage rates at 6.45% (Freddie Mac), understanding your loan's true cost is critical. This calculator provides institutional-grade analysis — including the impact of extra payments, which can save $50,000+ in interest and shave years off your term.

Payment Breakdown

• Early payments are mostly interest (Payment #1: 86% interest)
• Late payments are mostly principal (Payment #350: 95% principal)
• Key Insight: Extra payments early save the most interest.

Extra Payment Impact

• $100/mo extra saves $38,421 in interest
• Pays off loan 4 years early (30 → 26 years)
• Pro Tip: Bi-weekly payments = 13 full payments/year

How is my monthly payment calculated?

Your payment uses the standard amortization formula:

P = (r × PV) / (1 - (1 + r)^-n)

Where:
• P = Monthly payment
• PV = Loan amount
• r = Monthly rate (annual ÷ 12)
• n = Total payments (years × 12)

Example: $240K at 6.45% for 30 years → $1,505/mo

Why does most of my early payment go to interest?

Mortgages use amortization: interest = rate × remaining balance.

Month 1: Interest = $240,000 × 0.0645/12 = $1,290
Principal = $1,505 - $1,290 = $215

Month 120 (10 yrs): Balance ≈ $195,000
Interest = $1,048, Principal = $457

Key Insight: Extra payments early dramatically reduce total interest.

How does refinancing affect my total interest?

Refinancing resets your amortization schedule. While you get a lower rate, restarting the "interest-heavy" phase can increase total interest unless you:

• Shorten your term (e.g., 30→15 years)
• Continue making your original payment amount
• Have significant equity (≥20% to avoid PMI)

Pro Tip: Use our calculator to compare "old loan" vs. "new loan" — include closing costs in the new loan amount.

What are escrow accounts, and do I need one?

Escrow accounts hold money for property taxes and insurance, paid by your lender when due.

Required if:
• Down payment < 20% (most conventional loans)
• FHA/VA loans (always required)

Optional if: ≥20% equity (you can waive escrow but pay taxes/insurance yourself).

Note: This calculator shows principal + interest only. Add 1/12 of annual taxes/insurance to your actual payment.

Are bi-weekly payments worth it?

Yes — if structured correctly. Bi-weekly payments (½ monthly payment every 2 weeks) result in 13 full payments/year (26 halves = 13 full), paying off a 30-year loan in ~25 years.

Caveat: Some lenders charge fees for bi-weekly programs. Do it yourself: add 1/12 of your monthly payment as an extra principal payment each month (same effect, no fees).

What are the risks of adjustable-rate mortgages (ARMs)?

ARMs offer lower initial rates but carry significant risk:

• Payment shock: Rates can jump 2–5% at adjustment (e.g., 4% → 8% = +50% payment)
• Caps aren't foolproof: Lifetime caps (e.g., 5%) still mean huge increases
• Refinancing risk: If home values drop or credit worsens, you may not qualify to refinance

When ARMs make sense: You'll sell/refinance within the fixed period (e.g., 5/1 ARM for a 3-year stay).

How do HELOCs compare to cash-out refinancing?

Feature	Cash-Out Refi	HELOC
Interest Rate	Fixed	Variable (Prime + margin)
Fees	High ($3K–$6K)	Low ($0–$750)
Draw Period	Lump sum	10 years revolving credit
Best For	Debt consolidation, major renovations	Ongoing expenses, emergencies

Pro Tip: HELOCs are ideal for contractors needing flexible access; cash-out refinancing better for large one-time needs.