Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A 10 year mortgage compresses the whole loan into a short window, so most of each payment goes to principal from the start. On $350,000 at 6.5 percent, the payment is about $3,974, and of the first month's payment roughly $1,896 is interest and $2,078 is principal, about 52 percent. Total interest is about $126,902, far below a longer loan, and the home is owned outright in a decade.
Before you rely on it
What to check
Compare the payment with your take-home pay, not your gross income. A payment near a third of gross income can take well over a half of take-home.
The common error
Where people go wrong with 10-year mortgage calculator
Choosing the shortest term for the interest saving without leaving room for other goals. A payment that crowds out retirement saving or reserves can cost more than the interest it saves.
Sensitivity evidence
How annual mortgage rate changes the monthly principal and interest
| Annual mortgage rate | Monthly principal and interest | Total interest | Total of scheduled payments |
|---|---|---|---|
| 4.5% | $3,627 | $85,281 | $435,281 |
| 5.5% | $3,798 | $105,810 | $455,810 |
| 6.5%worked example | $3,974 | $126,902 | $476,902 |
| 7.5% | $4,155 | $148,547 | $498,547 |
| 8.5% | $4,339 | $170,740 | $520,740 |
Every input, tested
Which input moves the monthly principal and interest most
| Input | Tested from | To | Monthly principal and interest at each end | Swing |
|---|---|---|---|---|
| Mortgage term | 7.0 years | 13.0 years | $5,197 to $3,329 | $1,868 (47%) |
| Mortgage amount | $315,000 | $385,000 | $3,577 to $4,372 | $795 (20%) |
| Annual mortgage rate | 5.5% | 7.5% | $3,798 to $4,155 | $356 (9.0%) |
Two variables at once
Monthly principal and interest by annual mortgage rate and mortgage amount
| Annual mortgage rate \ Mortgage amount | $280,000 | $350,000 | $420,000 |
|---|---|---|---|
| 4.5% | $2,902 | $3,627 | $4,353 |
| 5.5% | $3,039 | $3,798 | $4,558 |
| 6.5% | $3,179 | $3,974 | $4,769 |
| 7.5% | $3,324 | $4,155 | $4,985 |
| 8.5% | $3,472 | $4,339 | $5,207 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Mortgage amount | $350,000 |
| Annual mortgage rate | 6.5% |
| Mortgage term | 10.0 years |
| Monthly principal and interest | $3,974 |
| Total interest | $126,902 |
| Total of scheduled payments | $476,902 |
Complete evidence
Full amortization schedule
Show all 120 rows
| Payment | Opening balance | Principal | Interest | Ending balance |
|---|---|---|---|---|
| Payment 1 | $350,000 | $2,078 | $1,896 | $347,922 |
| Payment 2 | $347,922 | $2,090 | $1,885 | $345,832 |
| Payment 3 | $345,832 | $2,101 | $1,873 | $343,731 |
| Payment 4 | $343,731 | $2,112 | $1,862 | $341,619 |
| Payment 5 | $341,619 | $2,124 | $1,850 | $339,495 |
| Payment 6 | $339,495 | $2,135 | $1,839 | $337,360 |
| Payment 7 | $337,360 | $2,147 | $1,827 | $335,213 |
| Payment 8 | $335,213 | $2,158 | $1,816 | $333,055 |
| Payment 9 | $333,055 | $2,170 | $1,804 | $330,884 |
| Payment 10 | $330,884 | $2,182 | $1,792 | $328,703 |
| Payment 11 | $328,703 | $2,194 | $1,780 | $326,509 |
| Payment 12 | $326,509 | $2,206 | $1,769 | $324,303 |
| Payment 13 | $324,303 | $2,218 | $1,757 | $322,086 |
| Payment 14 | $322,086 | $2,230 | $1,745 | $319,856 |
| Payment 15 | $319,856 | $2,242 | $1,733 | $317,615 |
| Payment 16 | $317,615 | $2,254 | $1,720 | $315,361 |
| Payment 17 | $315,361 | $2,266 | $1,708 | $313,095 |
| Payment 18 | $313,095 | $2,278 | $1,696 | $310,817 |
| Payment 19 | $310,817 | $2,291 | $1,684 | $308,526 |
| Payment 20 | $308,526 | $2,303 | $1,671 | $306,223 |
| Payment 21 | $306,223 | $2,315 | $1,659 | $303,908 |
| Payment 22 | $303,908 | $2,328 | $1,646 | $301,579 |
| Payment 23 | $301,579 | $2,341 | $1,634 | $299,239 |
| Payment 24 | $299,239 | $2,353 | $1,621 | $296,886 |
| Payment 25 | $296,886 | $2,366 | $1,608 | $294,520 |
| Payment 26 | $294,520 | $2,379 | $1,595 | $292,141 |
| Payment 27 | $292,141 | $2,392 | $1,582 | $289,749 |
| Payment 28 | $289,749 | $2,405 | $1,569 | $287,344 |
| Payment 29 | $287,344 | $2,418 | $1,556 | $284,926 |
| Payment 30 | $284,926 | $2,431 | $1,543 | $282,496 |
| Payment 31 | $282,496 | $2,444 | $1,530 | $280,052 |
| Payment 32 | $280,052 | $2,457 | $1,517 | $277,594 |
| Payment 33 | $277,594 | $2,471 | $1,504 | $275,124 |
| Payment 34 | $275,124 | $2,484 | $1,490 | $272,640 |
| Payment 35 | $272,640 | $2,497 | $1,477 | $270,143 |
| Payment 36 | $270,143 | $2,511 | $1,463 | $267,632 |
| Payment 37 | $267,632 | $2,525 | $1,450 | $265,107 |
| Payment 38 | $265,107 | $2,538 | $1,436 | $262,569 |
| Payment 39 | $262,569 | $2,552 | $1,422 | $260,017 |
| Payment 40 | $260,017 | $2,566 | $1,408 | $257,451 |
| Payment 41 | $257,451 | $2,580 | $1,395 | $254,872 |
| Payment 42 | $254,872 | $2,594 | $1,381 | $252,278 |
| Payment 43 | $252,278 | $2,608 | $1,367 | $249,670 |
| Payment 44 | $249,670 | $2,622 | $1,352 | $247,049 |
| Payment 45 | $247,049 | $2,636 | $1,338 | $244,413 |
| Payment 46 | $244,413 | $2,650 | $1,324 | $241,762 |
| Payment 47 | $241,762 | $2,665 | $1,310 | $239,098 |
| Payment 48 | $239,098 | $2,679 | $1,295 | $236,419 |
| Payment 49 | $236,419 | $2,694 | $1,281 | $233,725 |
| Payment 50 | $233,725 | $2,708 | $1,266 | $231,017 |
| Payment 51 | $231,017 | $2,723 | $1,251 | $228,294 |
| Payment 52 | $228,294 | $2,738 | $1,237 | $225,556 |
| Payment 53 | $225,556 | $2,752 | $1,222 | $222,804 |
| Payment 54 | $222,804 | $2,767 | $1,207 | $220,037 |
| Payment 55 | $220,037 | $2,782 | $1,192 | $217,254 |
| Payment 56 | $217,254 | $2,797 | $1,177 | $214,457 |
| Payment 57 | $214,457 | $2,813 | $1,162 | $211,644 |
| Payment 58 | $211,644 | $2,828 | $1,146 | $208,817 |
| Payment 59 | $208,817 | $2,843 | $1,131 | $205,974 |
| Payment 60 | $205,974 | $2,858 | $1,116 | $203,115 |
| Payment 61 | $203,115 | $2,874 | $1,100 | $200,241 |
| Payment 62 | $200,241 | $2,890 | $1,085 | $197,352 |
| Payment 63 | $197,352 | $2,905 | $1,069 | $194,446 |
| Payment 64 | $194,446 | $2,921 | $1,053 | $191,525 |
| Payment 65 | $191,525 | $2,937 | $1,037 | $188,589 |
| Payment 66 | $188,589 | $2,953 | $1,022 | $185,636 |
| Payment 67 | $185,636 | $2,969 | $1,006 | $182,667 |
| Payment 68 | $182,667 | $2,985 | $989 | $179,683 |
| Payment 69 | $179,683 | $3,001 | $973 | $176,682 |
| Payment 70 | $176,682 | $3,017 | $957 | $173,665 |
| Payment 71 | $173,665 | $3,033 | $941 | $170,631 |
| Payment 72 | $170,631 | $3,050 | $924 | $167,581 |
| Payment 73 | $167,581 | $3,066 | $908 | $164,515 |
| Payment 74 | $164,515 | $3,083 | $891 | $161,432 |
| Payment 75 | $161,432 | $3,100 | $874 | $158,332 |
| Payment 76 | $158,332 | $3,117 | $858 | $155,215 |
| Payment 77 | $155,215 | $3,133 | $841 | $152,082 |
| Payment 78 | $152,082 | $3,150 | $824 | $148,932 |
| Payment 79 | $148,932 | $3,167 | $807 | $145,764 |
| Payment 80 | $145,764 | $3,185 | $790 | $142,579 |
| Payment 81 | $142,579 | $3,202 | $772 | $139,378 |
| Payment 82 | $139,378 | $3,219 | $755 | $136,158 |
| Payment 83 | $136,158 | $3,237 | $738 | $132,922 |
| Payment 84 | $132,922 | $3,254 | $720 | $129,667 |
| Payment 85 | $129,667 | $3,272 | $702 | $126,396 |
| Payment 86 | $126,396 | $3,290 | $685 | $123,106 |
| Payment 87 | $123,106 | $3,307 | $667 | $119,799 |
| Payment 88 | $119,799 | $3,325 | $649 | $116,474 |
| Payment 89 | $116,474 | $3,343 | $631 | $113,130 |
| Payment 90 | $113,130 | $3,361 | $613 | $109,769 |
| Payment 91 | $109,769 | $3,380 | $595 | $106,389 |
| Payment 92 | $106,389 | $3,398 | $576 | $102,991 |
| Payment 93 | $102,991 | $3,416 | $558 | $99,575 |
| Payment 94 | $99,575 | $3,435 | $539 | $96,140 |
| Payment 95 | $96,140 | $3,453 | $521 | $92,687 |
| Payment 96 | $92,687 | $3,472 | $502 | $89,215 |
| Payment 97 | $89,215 | $3,491 | $483 | $85,724 |
| Payment 98 | $85,724 | $3,510 | $464 | $82,214 |
| Payment 99 | $82,214 | $3,529 | $445 | $78,685 |
| Payment 100 | $78,685 | $3,548 | $426 | $75,137 |
| Payment 101 | $75,137 | $3,567 | $407 | $71,570 |
| Payment 102 | $71,570 | $3,587 | $388 | $67,983 |
| Payment 103 | $67,983 | $3,606 | $368 | $64,377 |
| Payment 104 | $64,377 | $3,625 | $349 | $60,752 |
| Payment 105 | $60,752 | $3,645 | $329 | $57,107 |
| Payment 106 | $57,107 | $3,665 | $309 | $53,442 |
| Payment 107 | $53,442 | $3,685 | $289 | $49,757 |
| Payment 108 | $49,757 | $3,705 | $270 | $46,053 |
| Payment 109 | $46,053 | $3,725 | $249 | $42,328 |
| Payment 110 | $42,328 | $3,745 | $229 | $38,583 |
| Payment 111 | $38,583 | $3,765 | $209 | $34,818 |
| Payment 112 | $34,818 | $3,786 | $189 | $31,032 |
| Payment 113 | $31,032 | $3,806 | $168 | $27,226 |
| Payment 114 | $27,226 | $3,827 | $147 | $23,399 |
| Payment 115 | $23,399 | $3,847 | $127 | $19,552 |
| Payment 116 | $19,552 | $3,868 | $106 | $15,684 |
| Payment 117 | $15,684 | $3,889 | $85 | $11,795 |
| Payment 118 | $11,795 | $3,910 | $64 | $7,884 |
| Payment 119 | $7,884 | $3,931 | $43 | $3,953 |
| Payment 120 | $3,953 | $3,953 | $21 | $0.00 |
Where the inputs come from
A 10-year mortgage is rare, so get a real quote before relying on it; rates for very short terms can be lower than 15- or 30-year rates but lender availability is thin. Enter the amount you would borrow, not the price. The example uses the same 6.5% rate as the other term pages so the payments compare cleanly, though a lender's short-term rate may be lower.
Using the monthly principal and interest in a real decision
Test whether you could keep saving for retirement while carrying the payment.
When the result stops applying
A high fixed payment leaves little slack if income falls. Lenders qualify you on the payment, so the debt-to-income ratio limits how large a loan you can carry. The gain in equity is real but illiquid. If a shorter term crowds out an employer retirement match or an emergency fund, a longer loan with extra principal paid voluntarily is safer.
What to compare it with
Compare the 10-year loan with the 15-year calculator to see how much the last five years of speed costs each month. If you are close to retirement, consider the mortgage payoff calculator to hit a specific date with a longer loan and extra payments. Keep other goals funded, because a 10-year payment can starve retirement savings. If you cannot comfortably carry the payment, a 15-year loan gets most of the interest savings at a lower monthly cost.
People also ask
Frequently asked questions
Who should consider a 10-year mortgage?
Borrowers with high, stable income and a firm goal of owning the home outright, such as before retirement or a child's college years.
How much interest does a 10-year loan save?
On the example numbers, about $127,000 of total interest versus roughly $446,000 on a 30-year loan at the same rate.
Can I get a 10-year loan when refinancing?
Yes, many lenders offer a 10-year refinance, often at a rate below their 15-year and 30-year pricing. Compare the closing costs with the interest you would save, and check that the much higher monthly payment fits alongside your other goals.