Principal & interest only — taxes and insurance are not included. Everything updates as you type.
Yearly amortization
| Year | Interest | Principal | Balance |
|---|
Work out a home loan before you sign: monthly payment, total interest, total cost and payoff date from price, deposit, rate and term, plus a yearly schedule.
100% free · No sign-up · No daily limits · No watermarks · Processed in your browser — files never leave your device
Work out a home loan before you sign: monthly payment, total interest, total cost and payoff date from price, deposit, rate and term, plus a yearly schedule.
A $300,000 home with 20% down means a $240,000 loan. At 6.5% over 30 years the monthly payment is $1,516.96, the interest over the full term comes to roughly $306,000, and the loan clears in month 360. Raising the down payment or shortening the term cuts the interest sharply — try 20 years in the calculator and watch the total fall.
The monthly payment uses the standard amortization formula: with monthly rate r and n payments, payment = P × r ÷ (1 − (1 + r)^−n); at 0% it falls back to P ÷ n. The schedule then walks month by month, charging interest on the remaining balance and clearing principal with what is left, and rolls the months up into yearly rows. Figures are rounded to cents for display, and the balance reaches exactly zero on the final payment. Because the rate is fixed, the payment itself never changes — only its internal split between interest and principal does.
Principal and interest only — the repayment of the loan itself. Taxes, insurance and association fees are billed on top by most lenders and are not estimated here.
Every extra dollar down is a dollar not borrowed, so it cuts both the monthly payment and the total interest. Going from 10% to 20% down on the example above removes $30,000 of borrowing and roughly $38,000 of interest over the 30 years, and it can remove mortgage insurance from the monthly bill entirely.
Interest is charged on the outstanding balance, which is largest at the start. Early payments are mostly interest; as the balance falls, the same payment clears more and more principal. The yearly table shows that split tipping over the years.
It usually carries a lower rate and far less total interest, but the monthly payment is much higher. Compare the two terms here, then judge against your monthly budget rather than the interest total alone.
The maths is universal — price, deposit, rate, term. Enter amounts in your own currency and the results come out in the same unit. Only the conventions around the loan (taxes, insurance, fees) differ by country, and those are excluded.