Principal and interest
P&IWhat is principal and interest?
Principal and interest is the portion of your mortgage payment that repays the loan itself. It excludes property taxes, homeowners insurance, mortgage insurance, and HOA dues.
What it means in practice
On a fixed-rate mortgage the P&I payment never changes, but its composition does. Early payments are mostly interest; later payments are mostly principal.
Comparing loans on P&I alone hides real money. Taxes, insurance and mortgage insurance can add several hundred dollars a month and vary enormously by location.
Every result in this calculator shows the all-in monthly cost alongside P&I for exactly that reason.