Mortgage Calculator
Calculate your monthly mortgage payment and see a full amortization schedule. Enter your home price, down payment, loan term, and interest rate to get started.
Loan Details
Your Mortgage Summary
Monthly Payment Breakdown
Amortization Schedule
| Year | Principal | Interest | Total Payment | Balance |
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How to Use This Mortgage Calculator
Our mortgage calculator makes it easy to estimate your monthly payment and understand the full cost of your home loan.
Home Price
The purchase price of the home. The national median US home price is around $400,000–$430,000 as of 2024.
Down Payment
The upfront cash you pay toward the home. A 20% down payment avoids Private Mortgage Insurance (PMI). FHA loans allow as little as 3.5% down.
Loan Term
The length of your mortgage in years. A 30-year mortgage gives lower monthly payments but more total interest. A 15-year mortgage saves 40–50% in total interest paid.
Interest Rate
Your annual mortgage interest rate (APR). Rates vary by credit score, down payment, loan type, and market conditions. Use your lender's quote or check current average rates.
Property Tax & Home Insurance
Many lenders roll these into your monthly escrow payment. Property taxes average 1–2% of home value per year. Home insurance typically runs $800–$2,000/year.
Understanding Your Amortization Schedule
An amortization schedule shows how each payment splits between principal (reducing your loan balance) and interest (cost of borrowing). In early years, most of your payment goes toward interest. Over time, more goes toward principal.
30-Year vs. 15-Year Mortgage
A 30-year mortgage keeps monthly payments low. A 15-year mortgage has higher payments but dramatically lower total interest — typically 50% less over the life of the loan.
How to Lower Your Monthly Payment
- Increase your down payment to reduce the principal
- Choose a longer loan term (30 vs. 15 years)
- Improve your credit score to qualify for lower rates
- Shop multiple lenders — a 0.5% rate difference on $300,000 saves ~$30,000 over 30 years
- Consider paying points (prepaid interest) to buy down your rate
This calculator is for informational purposes only and does not constitute financial or lending advice. Consult a licensed mortgage professional before making home-buying decisions.
About the Mortgage Calculator
Your mortgage payment is the largest recurring expense most households will ever have. Getting the maths right — including the parts your lender does not always quote you upfront — can save tens or hundreds of thousands of dollars over the life of the loan. This page walks through the formula, the inputs that matter most, and the levers that actually move your payment.
The Formula
Monthly payment M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount (price minus down payment), r is the monthly interest rate (annual rate ÷ 12, as a decimal), and n is the total number of payments (years × 12). Add property tax and insurance to get your total PITI (Principal, Interest, Taxes, Insurance) payment.
Worked Example
$400,000 home, $80,000 down (20%), $320,000 loan at 6.75% for 30 years. r = 0.0675 ÷ 12 = 0.005625. n = 360. M = 320,000 × 0.005625 × (1.005625)^360 ÷ ((1.005625)^360 − 1) ≈ $2,076 principal and interest. Add $400/month property tax (1.2% annually) and $100 insurance and your full monthly payment is about $2,576.
The four inputs that move your payment most
Loan amount: every $10,000 extra you borrow adds roughly $65/month at 6.75% over 30 years. Interest rate: a 0.5% rate change on a $320,000 loan changes the monthly payment by about $100 and the lifetime interest by roughly $36,000. Loan term: a 15-year mortgage on the same loan costs about $2,832/month — $756 more — but saves $237,000 in lifetime interest. Down payment: paying 20% down avoids Private Mortgage Insurance (PMI), which can add 0.5-1% of the loan annually until your equity reaches 20%.
What your lender does not always tell you
Your monthly payment quote usually shows principal and interest only. Your true monthly cost also includes property tax (escrowed), homeowners insurance (escrowed), HOA dues if applicable, and PMI if your down payment was below 20%. A 'quoted payment' of $2,076 often becomes $2,800+ in practice. Use the total-monthly figure when you decide what you can afford.
30-year vs 15-year vs 20-year
The default 30-year mortgage minimises monthly cost but maximises interest paid. A 15-year loan typically saves 50-60% in total interest but raises the monthly payment by roughly 35-40%. A 20-year split-the-difference loan is uncommon but available — useful if the 15-year payment is just out of reach. Most owners refinance or sell within 7-10 years anyway, which makes the 30-year flexibility more valuable than the headline interest savings suggests.
Refinance break-even
Refinancing is worth it when the monthly savings cover the closing costs (typically 2-3% of the loan) within the time you expect to stay in the house. Rule of thumb: if rates have fallen 0.75-1.0% since you closed and you plan to stay 3+ more years, run the numbers on our refinance calculator.
Common Mistakes
- Quoting the principal-and-interest payment as 'your mortgage'. Taxes and insurance add 20-40% to that number.
- Skipping the 20% down payment to 'put money to work elsewhere' without accounting for PMI costs that may add $200-400/month.
- Buying at the top of your pre-approval. Lenders pre-approve based on debt-to-income ratios that assume nothing else changes — they don't budget for daycare, vacations, or a new car.
- Ignoring property tax differences between zip codes. The same $400,000 house can have a $4,000/year or $14,000/year tax bill depending on the jurisdiction.
- Forgetting that a 30-year fixed-rate loan is the borrower's option, not the lender's. You can pay extra principal anytime; you cannot be forced to pay faster.
Frequently Asked Questions
How much house can I afford?
The traditional rule says housing should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. In high-cost areas, lenders will approve up to 43% DTI, but that is the ceiling — not a target. See our affordability calculator for a personalised estimate.
What credit score do I need for the best rate?
740+ typically qualifies you for the best advertised rates. 680-739 still gets you a conventional loan at modestly higher rates. 620-679 may push you toward FHA. Below 620, options narrow significantly.
Are points worth paying?
One point costs 1% of the loan and typically lowers your rate by 0.25%. The break-even is usually 4-7 years. If you plan to keep the loan long-term and have cash on hand, points pay off; if you'll move or refinance soon, they don't.
This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making significant financial decisions.