Calculate payments, compare terms, and see the full amortization breakdown.
| Year | Payment | Principal | Interest | Balance |
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Your monthly payment is calculated using the formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). This ensures equal payments throughout the life of the loan, with the proportion going to interest decreasing and principal increasing over time.
Adding even $100/month extra to a $250,000 mortgage at 6.5% saves over $55,000 in interest and cuts 5 years off the loan. This happens because extra payments go entirely toward principal, which reduces the base for future interest calculations. Try adjusting the "Extra monthly payment" slider above to see the impact on your specific numbers. Also see how your mortgage payment fits into your full budget with the Currents budget calculator.
A 15-year mortgage has higher monthly payments but dramatically less total interest than a 30-year. For example, a $250,000 loan at 6.5%: the 30-year payment is $1,580 with $319,000 in total interest. The 15-year payment is $2,179 — $599 more per month — but total interest drops to $142,000. You save $177,000 by choosing the shorter term. The comparison cards above show this trade-off for your specific numbers.