Mortgage Calculator

Buying a home is one of the biggest financial decisions you'll ever make. Our mortgage calculator helps you figure out your monthly payment before you even talk to a lender — so you walk in prepared.

What Does This Calculator Do?

This mortgage calculator estimates your monthly principal and interest payment based on the loan amount, interest rate, and loan term. It also shows total interest paid over the life of the loan so you can see the full picture.

How to Use This Calculator

1. Enter the home price (or loan amount after your down payment).
2. Enter your down payment amount or percentage.
3. Enter the loan term — typically 15 or 30 years.
4. Enter the annual interest rate your lender quoted.
5. Click Calculate to see your estimated monthly payment.

Mortgage Payment Formula

The standard formula for a fixed-rate mortgage payment is:

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1]

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

Example Calculation

Say you borrow $300,000 at 6.5% annual interest for 30 years.

• r = 6.5% ÷ 12 = 0.5417% per month
• n = 30 × 12 = 360 payments
• Monthly payment ≈ $1,896
• Total paid over 30 years ≈ $682,560
• Total interest paid ≈ $382,560

Why Use This Calculator?

Most people underestimate how much interest accumulates over 30 years. Seeing the real numbers upfront lets you compare loan terms, decide whether to put more down, or shop for a lower rate — all of which can save tens of thousands of dollars.

Common Mistakes to Avoid

• Forgetting property taxes and insurance — your actual monthly payment will include these (called PITI).
• Using a rate that's too low — quoted rates often assume perfect credit. Use a realistic rate.
• Ignoring PMI — if your down payment is under 20%, add private mortgage insurance to your estimate.
• Not comparing 15 vs. 30-year terms — a 15-year loan costs more per month but far less in total interest.

Frequently Asked Questions

What is a good mortgage interest rate?

A competitive rate depends on market conditions, your credit score, and loan type. As of 2025, rates typically range from 6%–8% for a 30-year fixed loan. Always compare at least three lenders.

Does this calculator include taxes and insurance?

This calculator shows principal and interest only. Add an estimate for property taxes and homeowners insurance for your full monthly cost.

How does my down payment affect my mortgage?

A larger down payment reduces your loan amount (and monthly payment), eliminates PMI if you reach 20%, and often qualifies you for a better interest rate.

Should I choose a 15-year or 30-year mortgage?

A 30-year mortgage has lower monthly payments. A 15-year mortgage costs significantly less in total interest. If you can comfortably afford the higher 15-year payment, it's often the smarter long-term choice.

Can I pay off my mortgage early?

Yes. Making extra principal payments each month can shave years off your loan and save significant interest. Check our Mortgage Payoff Calculator to see the impact.

What is an amortization schedule?

It's a table showing every monthly payment broken down into principal and interest. In early years, most of your payment is interest. Over time, more goes toward principal. See our Amortization Calculator.

Does refinancing make sense?

Refinancing can lower your rate or change your term, but involves closing costs. Use our Refinance Calculator to see if the savings outweigh the cost.

Conclusion

Understanding your mortgage payment before you apply is one of the best financial moves you can make. Use this calculator to test different scenarios — loan amounts, rates, and terms — until you find a payment that fits your budget comfortably.

Related tools: Amortization Calculator | House Affordability Calculator | Down Payment Calculator | Refinance Calculator