Transparent method
The formula
Monthly principal and interest = P × r(1+r)ⁿ ÷ ((1+r)ⁿ−1)
Worked example
Monthly principal and interest$2,610
Total interest$276,281
Total of scheduled payments$626,281
Example inputs
Mortgage amount$350,000
Annual mortgage rate6.5%
Mortgage term20.0 years
How to interpret the result
A 20 year mortgage is the compromise term: a payment lower than a 15 year loan and interest far below a 30 year loan. On $350,000 at 6.5 percent, the payment is about $2,610, and the first month is roughly $1,896 of interest and $714 of principal, about 27 percent principal. Total interest is about $276,281. It suits borrowers who want to be debt-free before retirement without the strain of a 15 year payment.
Before you rely on it
What to check
Count the years to your target retirement date. A 20 year loan started at 40 ends at 60, and a 30 year loan started then runs to 70.
The common error
Where people go wrong with 20-year mortgage calculator
Ignoring that lenders may not offer the same rate for every term. Get quotes for the exact term, because the gap between terms is set by the market, not by a formula.
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% | $2,214 | $181,425 | $531,425 |
| 5.5% | $2,408 | $227,825 | $577,825 |
| 6.5%worked example | $2,610 | $276,281 | $626,281 |
| 7.5% | $2,820 | $326,698 | $676,698 |
| 8.5% | $3,037 | $378,972 | $728,972 |
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 | 15.0 years | 25.0 years | $3,049 to $2,363 | $686 (26%) |
| Mortgage amount | $315,000 | $385,000 | $2,349 to $2,870 | $522 (20%) |
| Annual mortgage rate | 5.5% | 7.5% | $2,408 to $2,820 | $412 (16%) |
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% | $1,771 | $2,214 | $2,657 |
| 5.5% | $1,926 | $2,408 | $2,889 |
| 6.5% | $2,088 | $2,610 | $3,131 |
| 7.5% | $2,256 | $2,820 | $3,383 |
| 8.5% | $2,430 | $3,037 | $3,645 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Mortgage amount | $350,000 |
| Annual mortgage rate | 6.5% |
| Mortgage term | 20.0 years |
| Monthly principal and interest | $2,610 |
| Total interest | $276,281 |
| Total of scheduled payments | $626,281 |
Complete evidence
Full amortization schedule
Show all 240 rows
| Payment | Opening balance | Principal | Interest | Ending balance |
|---|---|---|---|---|
| Payment 1 | $350,000 | $714 | $1,896 | $349,286 |
| Payment 2 | $349,286 | $718 | $1,892 | $348,569 |
| Payment 3 | $348,569 | $721 | $1,888 | $347,847 |
| Payment 4 | $347,847 | $725 | $1,884 | $347,122 |
| Payment 5 | $347,122 | $729 | $1,880 | $346,393 |
| Payment 6 | $346,393 | $733 | $1,876 | $345,660 |
| Payment 7 | $345,660 | $737 | $1,872 | $344,922 |
| Payment 8 | $344,922 | $741 | $1,868 | $344,181 |
| Payment 9 | $344,181 | $745 | $1,864 | $343,436 |
| Payment 10 | $343,436 | $749 | $1,860 | $342,687 |
| Payment 11 | $342,687 | $753 | $1,856 | $341,933 |
| Payment 12 | $341,933 | $757 | $1,852 | $341,176 |
| Payment 13 | $341,176 | $761 | $1,848 | $340,415 |
| Payment 14 | $340,415 | $766 | $1,844 | $339,649 |
| Payment 15 | $339,649 | $770 | $1,840 | $338,879 |
| Payment 16 | $338,879 | $774 | $1,836 | $338,105 |
| Payment 17 | $338,105 | $778 | $1,831 | $337,327 |
| Payment 18 | $337,327 | $782 | $1,827 | $336,545 |
| Payment 19 | $336,545 | $787 | $1,823 | $335,758 |
| Payment 20 | $335,758 | $791 | $1,819 | $334,968 |
| Payment 21 | $334,968 | $795 | $1,814 | $334,173 |
| Payment 22 | $334,173 | $799 | $1,810 | $333,373 |
| Payment 23 | $333,373 | $804 | $1,806 | $332,569 |
| Payment 24 | $332,569 | $808 | $1,801 | $331,761 |
| Payment 25 | $331,761 | $812 | $1,797 | $330,949 |
| Payment 26 | $330,949 | $817 | $1,793 | $330,132 |
| Payment 27 | $330,132 | $821 | $1,788 | $329,311 |
| Payment 28 | $329,311 | $826 | $1,784 | $328,485 |
| Payment 29 | $328,485 | $830 | $1,779 | $327,655 |
| Payment 30 | $327,655 | $835 | $1,775 | $326,820 |
| Payment 31 | $326,820 | $839 | $1,770 | $325,981 |
| Payment 32 | $325,981 | $844 | $1,766 | $325,137 |
| Payment 33 | $325,137 | $848 | $1,761 | $324,289 |
| Payment 34 | $324,289 | $853 | $1,757 | $323,436 |
| Payment 35 | $323,436 | $858 | $1,752 | $322,578 |
| Payment 36 | $322,578 | $862 | $1,747 | $321,716 |
| Payment 37 | $321,716 | $867 | $1,743 | $320,849 |
| Payment 38 | $320,849 | $872 | $1,738 | $319,977 |
| Payment 39 | $319,977 | $876 | $1,733 | $319,101 |
| Payment 40 | $319,101 | $881 | $1,728 | $318,220 |
| Payment 41 | $318,220 | $886 | $1,724 | $317,334 |
| Payment 42 | $317,334 | $891 | $1,719 | $316,444 |
| Payment 43 | $316,444 | $895 | $1,714 | $315,548 |
| Payment 44 | $315,548 | $900 | $1,709 | $314,648 |
| Payment 45 | $314,648 | $905 | $1,704 | $313,743 |
| Payment 46 | $313,743 | $910 | $1,699 | $312,833 |
| Payment 47 | $312,833 | $915 | $1,695 | $311,918 |
| Payment 48 | $311,918 | $920 | $1,690 | $310,998 |
| Payment 49 | $310,998 | $925 | $1,685 | $310,073 |
| Payment 50 | $310,073 | $930 | $1,680 | $309,143 |
| Payment 51 | $309,143 | $935 | $1,675 | $308,208 |
| Payment 52 | $308,208 | $940 | $1,669 | $307,268 |
| Payment 53 | $307,268 | $945 | $1,664 | $306,323 |
| Payment 54 | $306,323 | $950 | $1,659 | $305,373 |
| Payment 55 | $305,373 | $955 | $1,654 | $304,417 |
| Payment 56 | $304,417 | $961 | $1,649 | $303,457 |
| Payment 57 | $303,457 | $966 | $1,644 | $302,491 |
| Payment 58 | $302,491 | $971 | $1,638 | $301,520 |
| Payment 59 | $301,520 | $976 | $1,633 | $300,543 |
| Payment 60 | $300,543 | $982 | $1,628 | $299,562 |
| Payment 61 | $299,562 | $987 | $1,623 | $298,575 |
| Payment 62 | $298,575 | $992 | $1,617 | $297,583 |
| Payment 63 | $297,583 | $998 | $1,612 | $296,585 |
| Payment 64 | $296,585 | $1,003 | $1,607 | $295,582 |
| Payment 65 | $295,582 | $1,008 | $1,601 | $294,574 |
| Payment 66 | $294,574 | $1,014 | $1,596 | $293,560 |
| Payment 67 | $293,560 | $1,019 | $1,590 | $292,540 |
| Payment 68 | $292,540 | $1,025 | $1,585 | $291,516 |
| Payment 69 | $291,516 | $1,030 | $1,579 | $290,485 |
| Payment 70 | $290,485 | $1,036 | $1,573 | $289,449 |
| Payment 71 | $289,449 | $1,042 | $1,568 | $288,407 |
| Payment 72 | $288,407 | $1,047 | $1,562 | $287,360 |
| Payment 73 | $287,360 | $1,053 | $1,557 | $286,307 |
| Payment 74 | $286,307 | $1,059 | $1,551 | $285,248 |
| Payment 75 | $285,248 | $1,064 | $1,545 | $284,184 |
| Payment 76 | $284,184 | $1,070 | $1,539 | $283,114 |
| Payment 77 | $283,114 | $1,076 | $1,534 | $282,038 |
| Payment 78 | $282,038 | $1,082 | $1,528 | $280,956 |
| Payment 79 | $280,956 | $1,088 | $1,522 | $279,868 |
| Payment 80 | $279,868 | $1,094 | $1,516 | $278,775 |
| Payment 81 | $278,775 | $1,099 | $1,510 | $277,675 |
| Payment 82 | $277,675 | $1,105 | $1,504 | $276,570 |
| Payment 83 | $276,570 | $1,111 | $1,498 | $275,459 |
| Payment 84 | $275,459 | $1,117 | $1,492 | $274,341 |
| Payment 85 | $274,341 | $1,123 | $1,486 | $273,218 |
| Payment 86 | $273,218 | $1,130 | $1,480 | $272,088 |
| Payment 87 | $272,088 | $1,136 | $1,474 | $270,952 |
| Payment 88 | $270,952 | $1,142 | $1,468 | $269,811 |
| Payment 89 | $269,811 | $1,148 | $1,461 | $268,662 |
| Payment 90 | $268,662 | $1,154 | $1,455 | $267,508 |
| Payment 91 | $267,508 | $1,161 | $1,449 | $266,348 |
| Payment 92 | $266,348 | $1,167 | $1,443 | $265,181 |
| Payment 93 | $265,181 | $1,173 | $1,436 | $264,008 |
| Payment 94 | $264,008 | $1,179 | $1,430 | $262,828 |
| Payment 95 | $262,828 | $1,186 | $1,424 | $261,643 |
| Payment 96 | $261,643 | $1,192 | $1,417 | $260,450 |
| Payment 97 | $260,450 | $1,199 | $1,411 | $259,252 |
| Payment 98 | $259,252 | $1,205 | $1,404 | $258,046 |
| Payment 99 | $258,046 | $1,212 | $1,398 | $256,835 |
| Payment 100 | $256,835 | $1,218 | $1,391 | $255,616 |
| Payment 101 | $255,616 | $1,225 | $1,385 | $254,391 |
| Payment 102 | $254,391 | $1,232 | $1,378 | $253,160 |
| Payment 103 | $253,160 | $1,238 | $1,371 | $251,922 |
| Payment 104 | $251,922 | $1,245 | $1,365 | $250,677 |
| Payment 105 | $250,677 | $1,252 | $1,358 | $249,425 |
| Payment 106 | $249,425 | $1,258 | $1,351 | $248,166 |
| Payment 107 | $248,166 | $1,265 | $1,344 | $246,901 |
| Payment 108 | $246,901 | $1,272 | $1,337 | $245,629 |
| Payment 109 | $245,629 | $1,279 | $1,330 | $244,350 |
| Payment 110 | $244,350 | $1,286 | $1,324 | $243,064 |
| Payment 111 | $243,064 | $1,293 | $1,317 | $241,771 |
| Payment 112 | $241,771 | $1,300 | $1,310 | $240,471 |
| Payment 113 | $240,471 | $1,307 | $1,303 | $239,164 |
| Payment 114 | $239,164 | $1,314 | $1,295 | $237,850 |
| Payment 115 | $237,850 | $1,321 | $1,288 | $236,529 |
| Payment 116 | $236,529 | $1,328 | $1,281 | $235,201 |
| Payment 117 | $235,201 | $1,336 | $1,274 | $233,865 |
| Payment 118 | $233,865 | $1,343 | $1,267 | $232,523 |
| Payment 119 | $232,523 | $1,350 | $1,259 | $231,173 |
| Payment 120 | $231,173 | $1,357 | $1,252 | $229,815 |
| Payment 121 | $229,815 | $1,365 | $1,245 | $228,451 |
| Payment 122 | $228,451 | $1,372 | $1,237 | $227,079 |
| Payment 123 | $227,079 | $1,379 | $1,230 | $225,699 |
| Payment 124 | $225,699 | $1,387 | $1,223 | $224,312 |
| Payment 125 | $224,312 | $1,394 | $1,215 | $222,918 |
| Payment 126 | $222,918 | $1,402 | $1,207 | $221,516 |
| Payment 127 | $221,516 | $1,410 | $1,200 | $220,106 |
| Payment 128 | $220,106 | $1,417 | $1,192 | $218,689 |
| Payment 129 | $218,689 | $1,425 | $1,185 | $217,264 |
| Payment 130 | $217,264 | $1,433 | $1,177 | $215,831 |
| Payment 131 | $215,831 | $1,440 | $1,169 | $214,391 |
| Payment 132 | $214,391 | $1,448 | $1,161 | $212,942 |
| Payment 133 | $212,942 | $1,456 | $1,153 | $211,486 |
| Payment 134 | $211,486 | $1,464 | $1,146 | $210,022 |
| Payment 135 | $210,022 | $1,472 | $1,138 | $208,551 |
| Payment 136 | $208,551 | $1,480 | $1,130 | $207,071 |
| Payment 137 | $207,071 | $1,488 | $1,122 | $205,583 |
| Payment 138 | $205,583 | $1,496 | $1,114 | $204,087 |
| Payment 139 | $204,087 | $1,504 | $1,105 | $202,583 |
| Payment 140 | $202,583 | $1,512 | $1,097 | $201,071 |
| Payment 141 | $201,071 | $1,520 | $1,089 | $199,550 |
| Payment 142 | $199,550 | $1,529 | $1,081 | $198,022 |
| Payment 143 | $198,022 | $1,537 | $1,073 | $196,485 |
| Payment 144 | $196,485 | $1,545 | $1,064 | $194,940 |
| Payment 145 | $194,940 | $1,554 | $1,056 | $193,386 |
| Payment 146 | $193,386 | $1,562 | $1,048 | $191,824 |
| Payment 147 | $191,824 | $1,570 | $1,039 | $190,253 |
| Payment 148 | $190,253 | $1,579 | $1,031 | $188,675 |
| Payment 149 | $188,675 | $1,588 | $1,022 | $187,087 |
| Payment 150 | $187,087 | $1,596 | $1,013 | $185,491 |
| Payment 151 | $185,491 | $1,605 | $1,005 | $183,886 |
| Payment 152 | $183,886 | $1,613 | $996 | $182,273 |
| Payment 153 | $182,273 | $1,622 | $987 | $180,650 |
| Payment 154 | $180,650 | $1,631 | $979 | $179,019 |
| Payment 155 | $179,019 | $1,640 | $970 | $177,380 |
| Payment 156 | $177,380 | $1,649 | $961 | $175,731 |
| Payment 157 | $175,731 | $1,658 | $952 | $174,073 |
| Payment 158 | $174,073 | $1,667 | $943 | $172,407 |
| Payment 159 | $172,407 | $1,676 | $934 | $170,731 |
| Payment 160 | $170,731 | $1,685 | $925 | $169,046 |
| Payment 161 | $169,046 | $1,694 | $916 | $167,353 |
| Payment 162 | $167,353 | $1,703 | $906 | $165,650 |
| Payment 163 | $165,650 | $1,712 | $897 | $163,937 |
| Payment 164 | $163,937 | $1,722 | $888 | $162,216 |
| Payment 165 | $162,216 | $1,731 | $879 | $160,485 |
| Payment 166 | $160,485 | $1,740 | $869 | $158,745 |
| Payment 167 | $158,745 | $1,750 | $860 | $156,995 |
| Payment 168 | $156,995 | $1,759 | $850 | $155,236 |
| Payment 169 | $155,236 | $1,769 | $841 | $153,467 |
| Payment 170 | $153,467 | $1,778 | $831 | $151,689 |
| Payment 171 | $151,689 | $1,788 | $822 | $149,901 |
| Payment 172 | $149,901 | $1,798 | $812 | $148,104 |
| Payment 173 | $148,104 | $1,807 | $802 | $146,296 |
| Payment 174 | $146,296 | $1,817 | $792 | $144,479 |
| Payment 175 | $144,479 | $1,827 | $783 | $142,652 |
| Payment 176 | $142,652 | $1,837 | $773 | $140,816 |
| Payment 177 | $140,816 | $1,847 | $763 | $138,969 |
| Payment 178 | $138,969 | $1,857 | $753 | $137,112 |
| Payment 179 | $137,112 | $1,867 | $743 | $135,245 |
| Payment 180 | $135,245 | $1,877 | $733 | $133,368 |
| Payment 181 | $133,368 | $1,887 | $722 | $131,481 |
| Payment 182 | $131,481 | $1,897 | $712 | $129,584 |
| Payment 183 | $129,584 | $1,908 | $702 | $127,676 |
| Payment 184 | $127,676 | $1,918 | $692 | $125,758 |
| Payment 185 | $125,758 | $1,928 | $681 | $123,830 |
| Payment 186 | $123,830 | $1,939 | $671 | $121,891 |
| Payment 187 | $121,891 | $1,949 | $660 | $119,942 |
| Payment 188 | $119,942 | $1,960 | $650 | $117,982 |
| Payment 189 | $117,982 | $1,970 | $639 | $116,012 |
| Payment 190 | $116,012 | $1,981 | $628 | $114,031 |
| Payment 191 | $114,031 | $1,992 | $618 | $112,039 |
| Payment 192 | $112,039 | $2,003 | $607 | $110,036 |
| Payment 193 | $110,036 | $2,013 | $596 | $108,023 |
| Payment 194 | $108,023 | $2,024 | $585 | $105,998 |
| Payment 195 | $105,998 | $2,035 | $574 | $103,963 |
| Payment 196 | $103,963 | $2,046 | $563 | $101,917 |
| Payment 197 | $101,917 | $2,057 | $552 | $99,859 |
| Payment 198 | $99,859 | $2,069 | $541 | $97,791 |
| Payment 199 | $97,791 | $2,080 | $530 | $95,711 |
| Payment 200 | $95,711 | $2,091 | $518 | $93,620 |
| Payment 201 | $93,620 | $2,102 | $507 | $91,517 |
| Payment 202 | $91,517 | $2,114 | $496 | $89,404 |
| Payment 203 | $89,404 | $2,125 | $484 | $87,278 |
| Payment 204 | $87,278 | $2,137 | $473 | $85,142 |
| Payment 205 | $85,142 | $2,148 | $461 | $82,993 |
| Payment 206 | $82,993 | $2,160 | $450 | $80,833 |
| Payment 207 | $80,833 | $2,172 | $438 | $78,662 |
| Payment 208 | $78,662 | $2,183 | $426 | $76,478 |
| Payment 209 | $76,478 | $2,195 | $414 | $74,283 |
| Payment 210 | $74,283 | $2,207 | $402 | $72,076 |
| Payment 211 | $72,076 | $2,219 | $390 | $69,857 |
| Payment 212 | $69,857 | $2,231 | $378 | $67,626 |
| Payment 213 | $67,626 | $2,243 | $366 | $65,382 |
| Payment 214 | $65,382 | $2,255 | $354 | $63,127 |
| Payment 215 | $63,127 | $2,268 | $342 | $60,860 |
| Payment 216 | $60,860 | $2,280 | $330 | $58,580 |
| Payment 217 | $58,580 | $2,292 | $317 | $56,287 |
| Payment 218 | $56,287 | $2,305 | $305 | $53,983 |
| Payment 219 | $53,983 | $2,317 | $292 | $51,666 |
| Payment 220 | $51,666 | $2,330 | $280 | $49,336 |
| Payment 221 | $49,336 | $2,342 | $267 | $46,994 |
| Payment 222 | $46,994 | $2,355 | $255 | $44,639 |
| Payment 223 | $44,639 | $2,368 | $242 | $42,271 |
| Payment 224 | $42,271 | $2,381 | $229 | $39,891 |
| Payment 225 | $39,891 | $2,393 | $216 | $37,497 |
| Payment 226 | $37,497 | $2,406 | $203 | $35,091 |
| Payment 227 | $35,091 | $2,419 | $190 | $32,671 |
| Payment 228 | $32,671 | $2,433 | $177 | $30,239 |
| Payment 229 | $30,239 | $2,446 | $164 | $27,793 |
| Payment 230 | $27,793 | $2,459 | $151 | $25,334 |
| Payment 231 | $25,334 | $2,472 | $137 | $22,862 |
| Payment 232 | $22,862 | $2,486 | $124 | $20,376 |
| Payment 233 | $20,376 | $2,499 | $110 | $17,877 |
| Payment 234 | $17,877 | $2,513 | $97 | $15,364 |
| Payment 235 | $15,364 | $2,526 | $83 | $12,838 |
| Payment 236 | $12,838 | $2,540 | $70 | $10,298 |
| Payment 237 | $10,298 | $2,554 | $56 | $7,744 |
| Payment 238 | $7,744 | $2,568 | $42 | $5,177 |
| Payment 239 | $5,177 | $2,581 | $28 | $2,595 |
| Payment 240 | $2,595 | $2,595 | $14 | $0.00 |
Where the inputs come from
Twenty-year loans are offered by fewer lenders than 15- or 30-year loans, so confirm availability and the exact rate. Enter the loan amount and the quoted rate. If you are refinancing a 30-year loan you took a few years ago, this term can bring the payoff date forward without the full jump in payment that a 15-year loan requires.
When the result stops applying
Lenders do not always price 20-year loans between the 15- and 30-year rates, so the actual quote may not follow the neat progression the example assumes. Fewer lenders offer it, which limits shopping. Property taxes and insurance are not included in the payment shown.
What to compare it with
Compare with the 15- and 30-year pages at the same rate. If your lender offers a 20-year rate that is close to the 15-year rate, the middle term can be a bargain. If not, a 30-year loan paid down like a 20-year loan gives similar results with a lower required payment. Ask the lender for all three quotes together so the comparison is fair.
People also ask
Frequently asked questions
Why choose 20 years instead of 15 or 30?
It balances payment size and interest cost, sitting between the 15-year and 30-year loans, and some borrowers choose it to be debt free before retirement.
Is a 20-year mortgage common?
A 20-year mortgage is less common than the 15-year and 30-year loans, so fewer lenders advertise a rate for it. Ask for one directly, or compare the 15-year and 30-year quotes to see where a 20-year rate is likely to fall.
Will I qualify more easily than for a 15-year?
Usually yes, because the 20-year payment is lower than the 15-year payment on the same loan, which keeps your debt-to-income ratio smaller. The gap depends on the rate each term carries, so ask the lender to run both.