Mortgage & Loan Calculator
Estimate your monthly payments and see the true cost of your loan over time.
Loan Details
Optional (For Mortgages)
Estimated Monthly Payment
$2,296
Principal & Interest: $1,896
Monthly Payment Breakdown
Loan Summary
* This calculator assumes a fixed-rate mortgage with standard amortization. It does not include PMI (Private Mortgage Insurance) which may be required if your down payment is less than 20%.
Understanding Your Loan Payment
When you take out a loan, especially a mortgage, your monthly payment is usually fixed. However, the way that payment is applied changes over time through a process called amortization.
The PITI Breakdown
| Component | Description |
|---|---|
| Principal | The portion of your payment that actually pays down the original amount you borrowed. |
| Interest | The cost of borrowing the money. Early in the loan, most of your payment goes here. |
| Taxes | Property taxes assessed by your local government, usually held in an escrow account. |
| Insurance | Homeowners insurance to protect the property, and potentially PMI if your down payment was low. |
Frequently Asked Questions
Amortization is the process of spreading out a loan into a series of fixed payments over time. Early in the loan, most of your payment goes toward interest. Later on, most goes toward the principal.
A typical mortgage payment includes Principal, Interest, Taxes, and Insurance (often referred to as PITI). It may also include HOA fees or Private Mortgage Insurance (PMI).
A 15-year mortgage has higher monthly payments but saves you a massive amount of interest over the life of the loan. A 30-year mortgage offers lower monthly payments, giving you more flexibility in your budget.