MoneyBasisUnderstand your result
Principal
Principal is the portion of each payment that reduces the outstanding loan balance.
Interest
Interest is the cost charged by the lender for borrowing the remaining balance.
Loan balance
The loan balance is the amount still owed after each payment is applied.
Amortization
Amortization is the month-by-month split of each payment into principal and interest until the loan reaches zero.
How this calculation works
- Enter the home price, down payment, interest rate and loan term.
- Optionally add property tax, homeowners insurance, HOA dues and PMI on the Taxes & Fees tab.
- Review the estimated monthly principal and interest payment, total interest and amortization schedule.
M = P × r × (1 + r)^n / ((1 + r)^n − 1)
Monthly mortgage payment uses the standard fixed-rate amortization formula, where P is the loan amount, r is the monthly interest rate, and n is the number of payments.
- Mortgage payment
- A mortgage payment is the recurring payment used to repay a home loan. Principal reduces the outstanding loan balance, while interest is the cost charged by the lender for borrowing the money.
Assumptions & limitations
- Taxes, insurance, PMI and HOA fees are included only when you enter them on the Taxes & Fees tab.
- The rate is treated as a fixed annual percentage, compounded monthly.
- The schedule assumes every payment is made on time.
Educational estimates only. MoneyBasis does not provide financial, investment, tax or legal advice.
Frequently asked questions
How does a down payment change the result?
At a fixed home price, a larger down payment reduces the amount borrowed. Recalculate to compare the monthly payment and total interest.
Can I compare repayment schedules?
Open the detailed breakdown to inspect principal, interest, and remaining balance. Switch between yearly and monthly rows.
How do I calculate my monthly mortgage payment?
Use 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, and n is the total number of payments.
Does this include taxes and insurance?
Principal and interest are always shown. Add property tax, insurance, HOA and PMI on the Taxes & Fees tab to see an estimated total monthly cost.