How to Calculate a Mortgage Payment and Total Interest

Compare loan payments while distinguishing principal and interest from total housing costs.

Use the Mortgage Calculator alongside this illustrative example.

A practical example

A zero-interest loan of 120,000 over ten years would repay 1,000 per month. Adding interest raises that payment; adding property tax or insurance raises household cost further, even when the principal-and-interest calculation is unchanged. This simple baseline helps reveal a misplaced term or extra zero.

Check the result

Compare two offers using the same balance and term, then record fees and any changing-rate period separately. Read the repayment total as well as the initial monthly figure.

Try a comparison

Shorten a model’s term while keeping the principal and annual rate fixed. The monthly payment normally rises, while total interest can fall. Compare both effects with your own cash-flow constraints rather than using a smaller interest total as an automatic instruction.

What this does not establish

The result is a model, not a lender’s offer. It does not establish eligibility or account for every charge, repayment condition or future rate change.

Further reading

CFPB homebuying resources explain loan comparisons and the steps to obtain and assess official loan offers. Rules outside the United States require local sources.

Report unclear guidance or a result that needs checking.