Mortgage Calculator
Estimate your monthly payment and total cost of homeownership.
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $3,577 | $20,695 | $316,423 |
| 6 | $25,391 | $120,238 | $294,609 |
| 11 | $55,556 | $211,430 | $264,444 |
| 16 | $97,268 | $291,074 | $222,732 |
| 21 | $154,949 | $354,750 | $165,051 |
| 26 | $234,711 | $396,345 | $85,289 |
| 30 | $320,000 | $408,142 | $0 |
Canadian users: Canadian mortgages are typically compounded semi-annually, not monthly. Your actual payment may differ slightly. Canadian down payments below 20% require CMHC mortgage insurance (0.6%–4% of the insured amount added to the loan).
Disclaimer: This calculator provides estimates for educational purposes. Actual mortgage terms depend on your lender, credit score, and qualifying income. Always consult a licensed mortgage professional.
Mortgage Calculator — Frequently Asked Questions
How is my monthly mortgage payment calculated?
Your principal and interest payment uses the standard amortization 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 (years × 12). Your total PITI payment adds property tax and homeowner's insurance on top.
What is a good interest rate for a mortgage?
What counts as a "good" rate depends on the current market environment, your credit score, down payment size, and loan type. Generally, borrowers with credit scores above 740 and 20% down payment qualify for the best available rates. In 2024–2025, US 30-year fixed rates ranged from 6.5–7.5%. In Canada, 5-year fixed rates have been 5–6%. Check current rates with multiple lenders before committing.
How much does a 1% difference in interest rate affect my payment?
On a $400,000 30-year mortgage, a 1% rate difference changes your monthly P&I payment by approximately $233/month and your total interest paid by about $84,000 over the life of the loan. This is why shopping multiple lenders and improving your credit score before applying can be worth tens of thousands of dollars.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments (roughly 40–50% more) but saves enormous amounts of interest — typically 50–60% less total interest paid. A 30-year mortgage has lower payments, giving you more monthly cash flow flexibility. Many financial advisors suggest the 30-year if you'll reliably invest the payment difference; otherwise, the 15-year forces savings through equity building.
What is PMI and when can I avoid it?
PMI (Private Mortgage Insurance) is required by most US lenders when your down payment is less than 20% of the home's value. It typically costs 0.5–1.5% of the loan amount annually. In Canada, the equivalent is CMHC mortgage insurance (also required below 20% down). You can avoid PMI/CMHC by putting 20% down, or in the US, request cancellation once you reach 20% equity through principal payments.
Does paying extra toward principal really make a big difference?
Yes — the impact is dramatic. On a $300,000 mortgage at 7% over 30 years, adding just $200/month extra to principal saves approximately $87,000 in interest and cuts the payoff time by about 7 years. The earlier in the loan you make extra payments, the greater the savings, since you're reducing the principal on which future interest is calculated.