Mortgage Payment Calculator

Last updated July 2, 2026

A mortgage payment is built from more components than most first-time buyers expect. The core is principal and interest — the actual loan repayment — calculated using a fixed formula based on the loan amount, interest rate, and term. On a $350,000 loan at 7 percent over 30 years, the monthly principal-and-interest payment is $2,329. But lenders and servicers typically collect property taxes and homeowners insurance through an escrow account, adding several hundred dollars more per month depending on the home's location and value. If the down payment is less than 20 percent, private mortgage insurance adds another $50 to $200 monthly on top of that — making the real payment considerably higher than the base P&I figure.

Amortization is what most people don't fully grasp until they see a schedule. In the early years of a 30-year mortgage, the vast majority of each payment goes toward interest, not principal. On that $350,000 loan, roughly $2,042 of the first payment is interest and only $287 reduces the loan balance. This front-loading of interest is why extra payments made early in a mortgage are so powerful — every additional dollar goes directly to principal, permanently reducing the balance on which future interest is calculated. Making one extra mortgage payment per year — the equivalent of paying biweekly rather than monthly — can shorten a 30-year loan by four to six years and save tens of thousands in interest over the life of the loan.

The calculation shows the full monthly payment — P&I plus taxes, insurance, and any PMI — not just the base principal and interest figure. The difference between those two numbers often runs $400 to $800 per month and significantly affects what you can actually afford. Then run the amortization schedule to understand where your money goes and what an extra payment each month would save.