Mortgage Calculator

Calculate your monthly mortgage payments, total interest, and amortization schedule

$

Down payment:

%

Enter the annual interest rate from your lender

Monthly Payment

Principal & Interest Only

Loan Amount

Amount borrowed

Total Interest

Over years

Total Cost

Principal + Interest

Payment Breakdown

Principal

(%)

Interest

(%)

Loan Details

Home Price
Down Payment (%)
Loan Amount
Loan Term years ( payments)
Interest Rate % per year
Monthly Payment
Total of All Payments

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About Mortgage Calculator

What is a Mortgage Calculator?

A mortgage calculator helps you estimate your monthly mortgage payments based on home price, down payment, loan term, and interest rate. It breaks down your payments into principal and interest, helping you understand exactly how much you'll pay over the life of the loan.

How to Use This Calculator

  1. Enter Home Price: Input the total purchase price of the home
  2. Set Down Payment: Enter either a dollar amount or percentage of the home price
  3. Choose Loan Term: Select between common options like 15, 20, or 30 years
  4. Enter Interest Rate: Input the annual interest rate offered by your lender
  5. Review Results: See your monthly payment, total interest, and total loan cost

Understanding Your Results

Monthly Payment

This is the fixed amount you'll pay each month, which includes both principal and interest. Note that your actual payment may be higher if you include property taxes, homeowners insurance (PITI), and PMI.

Principal vs Interest

  • Principal: The portion of your payment that goes toward reducing your loan balance
  • Interest: The cost of borrowing money, paid to your lender

In the early years of your mortgage, most of your payment goes toward interest. Over time, more goes toward principal.

Total Interest

The total amount of interest you'll pay over the entire life of the loan. This can be substantial—often nearly as much as the original loan amount for 30-year mortgages.

The Formula Behind the Calculation

Monthly Payment Formula: M = P × [r(1+r)^n] / [(1+r)^n – 1]

Where:

  • M = Monthly payment
  • P = Principal (loan amount)
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Total number of payments (years × 12)

Source: Standard amortization formula used by financial institutions.

Key Factors Affecting Your Mortgage

Interest Rate

Even a small difference in interest rate can save or cost you thousands over the life of the loan. A 0.5% lower rate on a $300,000 loan can save over $30,000 in interest.

Loan Term

  • 15-year loans: Higher monthly payments but much less total interest
  • 30-year loans: Lower monthly payments but significantly more total interest

Down Payment

A larger down payment means a smaller loan, lower monthly payments, and potentially avoiding PMI (Private Mortgage Insurance).

Frequently Asked Questions

What's not included in this calculation?

This calculator shows principal and interest only. Your actual monthly payment may include:

  • Property taxes
  • Homeowners insurance
  • PMI (if down payment is less than 20%)
  • HOA fees

What down payment do I need?

While 20% is traditional, many loan programs allow as little as 3-5% down. However, less than 20% typically requires PMI.

How accurate is this calculator?

This calculator provides a very accurate estimate of your principal and interest payment. For exact figures including all costs, consult with your lender.

Should I choose a 15 or 30-year term?

A 15-year term has higher monthly payments but saves significantly on interest. A 30-year term offers lower monthly payments but costs more over time. Choose based on your budget and financial goals.

Disclaimer: This calculator provides estimates for educational purposes only. Actual rates and payments may vary. Consult with a qualified mortgage professional for specific advice.

Quick Tip: Compare Loan Terms

Use this calculator to compare different loan terms. A 15-year mortgage will have higher monthly payments but can save you tens of thousands in interest compared to a 30-year term.

Note: This calculator shows principal and interest only. Your actual monthly payment may also include property taxes, homeowners insurance (often called PITI), private mortgage insurance (PMI), and HOA fees.