P&I Calculator - Mortgage Principal & Interest

P&I Calculator - Mortgage Principal & Interest

Basic Information

$
Total value of the house you plan to purchase
$
The amount you plan to pay upfront
$
The amount you need to borrow (House Value - Down Payment)
%
years

Advanced Options

$/year
$/year
%/year
Private Mortgage Insurance (PMI) is typically required when your down payment is less than 20%

Extra Payments

$
Additional amount to pay each month
$
Additional amount to pay once per year
$
One-time additional payment (applied immediately)
Monthly Payment (P&I) $0.00
Total Monthly Payment $0.00
Total Payment $0.00
Total Interest Paid $0.00
Loan-to-Value Ratio 0%

Monthly Payment Breakdown

Remaining Balance Over Time

Yearly Payment Breakdown

Cumulative Payments Over Time

Amortization Schedule

Year Principal Paid Interest Paid Remaining Balance

Key Features
  • Complete Payment Analysis: Calculate P&I, taxes, insurance, and PMI
  • Visual Breakdowns: See payment allocation and amortization charts
  • Advanced Options: Include property tax, insurance, and PMI calculations
  • Detailed Schedule: View year-by-year amortization details
How to Use
  1. Enter House Value: Input the total price of the home
  2. Set Down Payment: Enter your planned down payment amount
  3. Check Loan Amount: Verify the calculated loan amount
  4. Input Interest Rate: Enter the annual interest rate from your lender
  5. Choose Loan Term: Select your preferred loan duration
  6. Add Extra Costs: Include property tax, insurance, and PMI if applicable
  7. Review Results: Analyze your monthly payments and total costs
Pro Tip: A 20% down payment helps you avoid PMI and can significantly reduce your monthly payments. Compare different down payment amounts to find the best balance for your situation.

The monthly mortgage payment is calculated using a standard amortization formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

Where:

  • M: Monthly Payment
  • P: Principal Loan Amount
  • i: Monthly Interest Rate (Annual Rate / 12)
  • n: Total Number of Payments (Loan Term in Years * 12)

Additional costs (taxes, insurance, PMI) are divided by 12 and added to the monthly payment.

Before Getting a Mortgage
  • Down Payment Impact: A larger down payment reduces monthly costs and may eliminate PMI
  • Interest Rate Factors: Your credit score and market conditions affect your rate
  • Additional Costs: Remember HOA fees, maintenance, and utilities aren't included here
  • Loan Types: Compare fixed-rate vs adjustable-rate mortgages
Financial Planning Tips
  • Get pre-approved before house hunting
  • Save for both down payment and emergency fund
  • Consider the full cost of homeownership
  • Shop around for the best mortgage rates
Remember: Your actual mortgage terms and costs may vary based on your financial situation, property location, and current market conditions. Always consult with mortgage professionals for personalized advice.

Understanding P&I in Your Mortgage Payment

Your monthly mortgage payment consists primarily of Principal and Interest (P&I). The principal portion reduces your loan balance, while the interest is the cost of borrowing. Understanding P&I helps you make informed decisions about your mortgage.

What Affects Your P&I Payment?

  • Loan Amount: The total amount you're borrowing
  • Interest Rate: Annual rate charged by your lender
  • Loan Term: Length of time to repay (typically 15 or 30 years)
  • Down Payment: Larger down payments reduce your P&I

Beyond P&I: Total Monthly Payment

  • Property Taxes: Annual taxes divided by 12
  • Insurance: Annual premium divided by 12
  • PMI: Required for down payments under 20%
  • HOA Fees: If applicable to your property

Related Financial Calculators

Home Purchase Planning

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