Mortgage Calculator
Calculate your monthly mortgage payment, see a full amortization schedule, or find out how much home you can afford.
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A mortgage calculator helps you understand the true cost of buying a home before you sign anything. It translates a loan amount, interest rate, and term into a concrete monthly payment — then shows you how much of each payment goes to interest versus principal over time. Use it to compare loan terms, test different down payments, and check whether a home is within your budget.
Example Calculation
Home price: $400,000 Down payment: $80,000 (20%) Loan: $320,000 at 6.5% for 30 years Monthly rate = 6.5% ÷ 12 = 0.5417% Monthly payment ≈ $2,023 Total paid = $728,280 Total interest = $408,280
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 = number of payments (years × 12)
How Mortgage Payments Are Calculated
Each monthly payment covers accrued interest first, then reduces principal. Early payments are mostly interest; later ones are mostly principal — this is amortization. A shorter term means higher payments but far less total interest. A larger down payment reduces the loan balance and may eliminate private mortgage insurance (PMI).
Frequently Asked Questions
Does this include property tax and insurance?
The base formula calculates principal + interest only. Many lenders roll tax and insurance into escrow, adding to your actual monthly payment.
How much does a 1% rate difference matter?
On a $300,000 30-year loan, 1% more means roughly $170 extra per month and $60,000 more in total interest.
Is 15 or 30 years better?
15-year loans have higher payments but roughly half the total interest. Choose based on cash-flow flexibility vs. interest cost.
What is PMI and when can I drop it?
Private Mortgage Insurance is required when your down payment is under 20%. You can request removal once you reach 20% equity.