Loan Calculator
Work out loan repayments, total interest paid and a full amortisation schedule.
This covers principal and interest only. A real mortgage payment usually also includes property tax, home insurance and — below 20% down — mortgage insurance, which can add a few hundred a month.
How the payment is worked out
Every payment covers that month’s interest first, and whatever is left chips away at the balance. Because the balance starts high, early payments are mostly interest — on a 30-year mortgage it can take over a decade before you are paying more principal than interest each month. The year-by-year table above shows exactly where the crossover happens.
Why the term matters so much
Shortening a loan raises the monthly payment but cuts total interest dramatically, because you are borrowing the money for less time. Try the same amount over 30 years and 15 — the monthly figure rises by roughly half, while total interest often falls by more than half.
What this doesn’t include
Principal and interest only. Property tax, insurance, HOA fees and mortgage insurance are real costs that lenders fold into the payment you actually make each month, so budget above the figure shown here.