Loading page...
Loading page...
Calculate your monthly mortgage payment, view the full amortization schedule, and compare loan scenarios instantly. Bank-accurate results — no sign-up required.
Include PMI
Private Mortgage Insurance (required if down payment < 20%)
$2,161.46
Everything you need to know
A mortgage is a loan secured by real property—typically a house or land. When you take out a mortgage, you're borrowing money from a lender to purchase property, and you agree to repay the loan over a set period (usually 15 to 30 years) with interest. The property itself serves as collateral, meaning the lender can foreclose if you fail to make payments.
Understanding mortgages is one of the most important financial skills for homeownership. The difference between a well-structured mortgage and a poor choice can amount to tens of thousands of dollars over the life of the loan. This mortgage calculator helps you explore different scenarios and understand exactly what your monthly payment will be.
Our mortgage calculator simplifies the process of estimating your monthly payment:
Enter the Property Details
Provide Loan Terms
Add Property Costs (Optional)
Review Your Results
The standard formula for calculating a monthly mortgage payment is:
M = P [ r(1+r)^n ] / [ (1+r)^n – 1 ]
Where:
Example: $300,000 loan at 6% APR for 30 years
Total Interest = (Monthly Payment × Number of Payments) - Principal
Example: With the above loan:
This shows why even small changes in interest rate or loan term significantly impact total cost.
Remaining Balance = P [ ((1+r)^n - (1+r)^p) / ((1+r)^n - 1) ]
Where:
This formula explains why early payments are mostly interest—you're paying down a larger portion of principal as the loan ages.
Scenario: Sarah is buying her first home for $350,000. She has saved $70,000 for a 20% down payment. Her lender offers 6.5% APR for a 30-year mortgage. Property taxes are $3,000/year, and homeowner's insurance is $1,200/year.
Calculations:
Same loan amount: $280,000 at 6.5% APR
| Metric | 30-Year | 15-Year |
|---|---|---|
| Monthly P&I | $1,780 | $2,253 |
| Total Interest | $360,800 | $120,540 |
| Interest Savings | — | $240,260 |
Sarah saves over $240,000 in interest with a 15-year mortgage, but pays $473 more per month. The choice depends on her cash flow priorities.
$280,000 loan, 30-year term
| Interest Rate | Monthly P&I | Total Interest |
|---|---|---|
| 5.5% | $1,589 | $291,920 |
| 6.0% | $1,679 | $323,920 |
| 6.5% | $1,780 | $360,800 |
| 7.0% | $1,864 | $391,040 |
A 1.5% difference in interest rate ($191/month) totals $68,880 in additional interest—showing why shopping for the best rate matters.
$350,000 home purchase, 30-year term at 6.5% APR
| Down Payment | Loan Amount | Monthly P&I | Total Interest |
|---|---|---|---|
| 10% ($35,000) | $315,000 | $1,999 | $404,650 |
| 20% ($70,000) | $280,000 | $1,780 | $360,800 |
| 30% ($105,000) | $245,000 | $1,561 | $316,950 |
A larger down payment directly reduces your monthly payment and total interest, but requires more upfront capital.
This acronym represents the four components of a typical housing payment:
Amortization is the process of paying off a loan through regular installments. At the beginning of a mortgage, most of your payment goes toward interest. Over time, more goes toward principal. By year 15 of a 30-year mortgage, you're typically paying equal amounts to principal and interest.
LTV = (Loan Amount / Property Value) × 100
If your down payment is less than 20%, lenders require PMI—typically 0.5-1% of your loan amount annually. This protects the lender if you default. Once your equity reaches 20%, you can request PMI cancellation.
A 100-point credit score difference can mean 0.5-1% difference in your rate.
Larger down payments (20%+) typically qualify for better rates and eliminate PMI.
Shorter terms (15 years) usually have lower rates than longer terms (30 years).
Mortgage rates follow broader economic indicators and Federal Reserve policy. Even daily rate changes are common.
Before house hunting, get pre-approval from multiple lenders. This shows you're a serious buyer and locks in your rate for 60-90 days.
Rates vary between lenders. Get quotes from at least 3-5 lenders. A 0.25% difference on a $300,000 loan saves $48/month ($17,280 over 30 years).
"Points" are upfront fees (typically 1% of loan amount) that permanently reduce your interest rate (usually 0.25% per point). Calculate the breakeven point based on how long you'll keep the mortgage.
Even one extra payment annually significantly reduces total interest and shortens the loan:
Instead of monthly payments, pay half every two weeks. This results in 26 half-payments (=13 full payments) annually instead of 12, accelerating payoff.
Save for a 20% down payment to avoid PMI (~$150-300/month on a $300,000 loan). The cost of waiting to save 20% is often less than PMI costs.
If refinancing, calculate when lower payments save you enough to offset closing costs (typically 3-5 years).
When you find a good rate, lock it in writing. Rates can change daily, and a locked rate is guaranteed through closing.
The Loan Estimate you receive 3 days after application details all costs and terms. Review it carefully and ask questions about anything unclear.
Just because you're approved doesn't mean you should borrow that much. Lenders often qualify you for more than you can comfortably afford.
Don't just focus on the interest rate—closing costs can add $5,000-15,000. Sometimes a slightly higher rate with lower costs is better.
Waiting 6-12 months to improve your credit score before applying can save you 1-2% interest ($30,000-60,000 over 30 years).
Shopping for homes without pre-approval wastes time and gives sellers less confidence in your offer.
Don't gamble on rates decreasing—lock in a reasonable rate when available. Rates are unpredictable.
Many buyers focus only on P&I, forgetting property taxes and insurance often equal or exceed the interest payment.
A thorough inspection ($300-500) can save you from a money pit property or negotiate repairs before purchase.
Using every dollar of borrowing capacity limits flexibility for unexpected repairs or vacancies.
A mortgage is likely the largest financial commitment you'll make. Taking time to understand the numbers, compare options, and plan strategically can save tens of thousands of dollars over the life of your loan. Use this calculator to explore different scenarios, but also consult with mortgage professionals, financial advisors, and tax professionals to ensure your mortgage aligns with your broader financial goals.
FAQ
What is a mortgage? A mortgage is a loan used to purchase real estate, typically repaid over 15-30 years.
What affects my mortgage rate? Credit score, loan amount, down payment, loan term, current market rates, and property type all affect rates.
Should I choose 15-year or 30-year mortgage? 30-year has lower payments, 15-year builds equity faster and costs less in interest. Choose based on budget.
Down Payment Calculator • Mortgage Amortization Calculator • Mortgage Payoff Calculator • Home Affordability Calculator
This calculator is provided for educational and informational purposes only. It is not financial, legal, tax, or investment advice. The results are estimates based on the assumptions and inputs you provide.
Actual results may differ significantly due to:
Please consult with a qualified financial advisor, tax professional, or attorney before making any financial decisions. Past performance does not guarantee future results. Always verify important calculations independently before relying on them.
Find out how much house you can afford.
Calculate your home down payment savings plan.
View detailed mortgage amortization schedules.
Compare your current loan to a new one.