Loan Amount
$360,000
Monthly P&I
$2,364.94
Total Interest
$491,380
Total Cost
$851,380
Loan Amount
$360,000
Monthly P&I
$2,364.94
Total Interest
$491,380
Total Cost
$851,380
The Mortgage Payoff Calculator estimates your full monthly housing payment — principal, interest, property tax, homeowners insurance, and PMI (if applicable) — based on your home price, down payment, interest rate, and loan term.
It also generates a complete amortization schedule showing exactly how each payment splits between principal and interest, how your balance declines over time, and your total interest cost over the life of the loan. Use it to compare 15-year vs. 30-year terms or see how a larger down payment lowers your monthly payment.
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]This standard amortization formula calculates the fixed monthly principal-and-interest payment (M) that fully repays a loan over its term. Property taxes, homeowners insurance, and PMI are added on top of M to get your total monthly payment.
Example 1: $450,000 home, 20% down, 30-year fixed at 6.875%
Loan amount = $360,000 (P), monthly rate = 6.875% ÷ 12 = 0.5729% (r), n = 360 payments.
Monthly P&I ≈ $2,365 — total interest paid over 30 years ≈ $491,400.
Example 2: Same home, 15-year fixed at 6.25%
Same $360,000 loan, but n = 180 payments at a typically lower 15-year rate.
Monthly P&I ≈ $3,089 (about $724 more/month) — but total interest drops to roughly $196,000, saving about $295,000 over the life of the loan.
Example 3: Less than 20% down — PMI kicks in
$450,000 home with $45,000 down (10%) means a 90% loan-to-value ratio, which is above the 80% PMI threshold.
PMI of roughly $130–$280/month is added until you reach 22% equity, at which point it's automatically removed under the Homeowners Protection Act.
Methodology
M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1]. PMI at 0.85%/yr when LTV>80%. Sources: Freddie Mac, Fannie Mae, CFPB.
M = P·r(1+r)ⁿ / [(1+r)ⁿ−1], where P is the loan, r is monthly rate (annual÷12), n is total payments. We add property tax, insurance, and PMI where applicable.
Private Mortgage Insurance applies when down payment is below 20% (LTV > 80%). Typically 0.5–1.5% of the loan annually. Automatically cancelled at 22% equity under the Homeowners Protection Act.
30-year = lower monthly payment, more total interest. 15-year = lower rate (~0.5–0.75% less), half the interest cost, equity built faster. Use the term buttons above to compare both instantly.
Lenders use the 28/36 rule: housing costs ≤ 28% of gross monthly income, total debts ≤ 36%. Try our Affordability Calculator for a precise estimate based on your income and debts.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.