Tool
Enter your numbers and see exactly what you'll pay each month, how much goes to interest, and how the loan breaks down over time.
| Month | Payment | Principal | Interest | Balance |
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With a fixed payment mortgage (the standard in the US), you pay the same amount every month for the life of the loan. Early on, most of that payment goes toward interest. As you chip away at the balance, more goes toward principal. It's predictable and easy to budget around.
A fixed principal mortgage works differently. You repay the same amount of principal every month, but the interest portion shrinks as your balance goes down. That means your first payment is the highest, and it gradually decreases. You end up paying less total interest, but you need to handle the larger payments up front.
For a $400,000 loan at 6.5% over 30 years, fixed payment gives you about $2,528/month with roughly $510K in total interest. Fixed principal starts at around $3,833/month but drops every month, and total interest comes out to about $391K — saving you over $100K. The tradeoff is affordability in those early years.