Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and full loan breakdown for any home purchase.
Frequently Asked Questions
What does this mortgage calculator include?
This calculator estimates your monthly principal and interest payment based on the home price, down payment, interest rate, and loan term. It does not include property taxes, homeowner's insurance, HOA fees, or PMI — your actual monthly payment will be higher once those are added by your lender.
How is the monthly mortgage payment calculated?
The formula is M = L × [r(1+r)^n] / [(1+r)^n − 1], where L is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (years × 12). This is the standard amortization formula used by lenders.
What is a down payment and how does it affect my payment?
A down payment is the portion of the home price you pay upfront. A larger down payment reduces your loan amount, which lowers your monthly payment and reduces the total interest you pay over the life of the loan. It can also help you avoid PMI if you put down 20% or more.
What is PMI and why is it not included?
PMI stands for Private Mortgage Insurance. Lenders typically require it when your down payment is less than 20% of the home price. PMI costs vary by lender and loan type, so it is not included in this estimate. Your lender will provide the exact PMI cost for your situation.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has a higher monthly payment but significantly less total interest paid over the life of the loan. A 30-year mortgage has a lower monthly payment, which may free up cash flow, but you will pay much more in interest overall. Use this calculator to compare both options side by side.
How does the interest rate affect my payment?
Even a small change in interest rate has a large impact on your total cost. For example, on a $300,000 loan over 30 years, the difference between 6% and 7% is roughly $180 per month and over $60,000 in total interest. Locking in a lower rate early can save tens of thousands of dollars.