Mortgage Calculator
This mortgage calculator does more than tell you the monthly payment. It projects the entire life of the loan, year by year, so you can see how much of each year's payments goes to interest, how much builds equity, and what you will still owe at any point in the future. Enter the home price, your down payment, the interest rate, and the term to see the full picture.
- Loan amount
- $320,000.00
- Monthly payment (principal & interest)
- $2,022.62
- Payoff time
- 30 years
- Total interest
- $408,142.36
With $200.00 extra per month ($2,222.62 total)
- New payoff time
- 23 years, 5 months
- Total interest
- $302,713.69
- Interest saved
- $105,428.67
- Time saved
- 6 years, 7 months
Remaining balance over time
| Year | Principal paid | Interest paid | Balance | Balance w/ extra |
|---|---|---|---|---|
| 1 | $3,576.72 | $20,694.69 | $316,423.28 | $313,950.47 |
| 2 | $3,816.26 | $20,455.15 | $312,607.02 | $307,495.80 |
| 3 | $4,071.84 | $20,199.57 | $308,535.17 | $300,608.84 |
| 4 | $4,344.54 | $19,926.87 | $304,190.63 | $293,260.65 |
| 5 | $4,635.50 | $19,635.91 | $299,555.13 | $285,420.33 |
| 6 | $4,945.95 | $19,325.46 | $294,609.18 | $277,054.94 |
| 7 | $5,277.19 | $18,994.22 | $289,331.98 | $268,129.30 |
| 8 | $5,630.62 | $18,640.80 | $283,701.37 | $258,605.90 |
| 9 | $6,007.71 | $18,263.70 | $277,693.66 | $248,444.69 |
| 10 | $6,410.06 | $17,861.36 | $271,283.60 | $237,602.97 |
| 11 | $6,839.35 | $17,432.06 | $264,444.26 | $226,035.16 |
| 12 | $7,297.39 | $16,974.02 | $257,146.86 | $213,692.64 |
| 13 | $7,786.11 | $16,485.30 | $249,360.75 | $200,523.51 |
| 14 | $8,307.56 | $15,963.85 | $241,053.19 | $186,472.42 |
| 15 | $8,863.94 | $15,407.48 | $232,189.25 | $171,480.30 |
| 16 | $9,457.57 | $14,813.84 | $222,731.68 | $155,484.13 |
| 17 | $10,090.96 | $14,180.45 | $212,640.72 | $138,416.67 |
| 18 | $10,766.77 | $13,504.64 | $201,873.95 | $120,206.17 |
| 19 | $11,487.84 | $12,783.57 | $190,386.11 | $100,776.08 |
| 20 | $12,257.20 | $12,014.21 | $178,128.90 | $80,044.72 |
| 21 | $13,078.09 | $11,193.32 | $165,050.81 | $57,924.94 |
| 22 | $13,953.96 | $10,317.46 | $151,096.86 | $34,323.76 |
| 23 | $14,888.48 | $9,382.93 | $136,208.38 | $9,141.96 |
| 24 | $15,885.59 | $8,385.83 | $120,322.79 | $0.00 |
| 25 | $16,949.47 | $7,321.94 | $103,373.32 | $0.00 |
| 26 | $18,084.61 | $6,186.80 | $85,288.71 | $0.00 |
| 27 | $19,295.77 | $4,975.64 | $65,992.94 | $0.00 |
| 28 | $20,588.05 | $3,683.37 | $45,404.89 | $0.00 |
| 29 | $21,966.86 | $2,304.55 | $23,438.03 | $0.00 |
| 30 | $23,438.03 | $833.39 | $0.00 | $0.00 |
The extra payment field is where it gets interesting. Anything you pay above the required amount goes straight to principal, which shrinks every future interest charge. The calculator runs both scenarios side by side and shows exactly how many years an extra payment cuts from the loan and how much interest it saves. The amounts tend to surprise people: on a typical 30-year mortgage, even a modest extra payment saves a six-figure sum.
How it's calculated
M = P × [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ − 1 ]
M is the required monthly payment on principal P over n months at monthly rate r. The schedule is then simulated month by month: each payment first covers that month's interest (balance × r), and the remainder, plus any extra payment, reduces the principal. Because the balance shrinks faster with extra payments, later interest charges shrink too, which is why the savings compound.
Worked example
A $400,000 home with 20% down leaves a $320,000 loan. At 6.5% over 30 years, the required payment is $2,022.62 and total interest comes to $408,142. Adding $200 extra per month pays the loan off in 23 years and 5 months instead of 30, and cuts total interest to $302,714. That extra $200 saves $105,428 and almost 7 years of payments.
Frequently asked questions
›Does the payment shown include taxes and insurance?
No. The result is principal and interest only. Lenders usually collect property taxes, homeowner's insurance, and any HOA dues on top of it through an escrow account, which can add several hundred dollars to the monthly bill.
›Why do extra payments save so much interest?
Interest is charged on the remaining balance every month. An extra dollar paid today stops interest from accruing on that dollar for the rest of the loan, which on a 30-year mortgage can mean paying back far less than double that dollar in avoided interest.
›Is it better to pay extra monthly or make one lump sum?
Earlier is better, because savings depend on how long the principal reduction has to work. A lump sum today beats the same total spread over years. That said, a steady monthly extra payment is easier to sustain and still captures most of the benefit.
›Should I pay off my mortgage early or invest the extra money?
Paying extra earns you a guaranteed return equal to your mortgage rate, while investing offers a higher but uncertain return. Many people split the difference. Compare your rate against realistic investment returns, and check whether your loan has prepayment penalties before deciding.
›What does the amortization table show?
One row per year of the loan: how much of that year's payments went to interest, how much to principal, and the balance left at year end. The last column shows the balance in the extra-payment scenario, so you can see the gap widen over time.
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