🏠 Mortgage Calculator

Calculate your monthly mortgage payment, total interest paid, and view a full amortization schedule.

Loan Details

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Total Monthly Payment
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Principal & Interest
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Property Tax
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Loan Amount
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Total Interest
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Total Payment
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Payoff Date
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How to Use the Mortgage Calculator

Enter your home price, down payment, interest rate, and loan term to instantly see your estimated monthly payment. The calculator also breaks down principal vs. interest and shows how much you'll pay over the life of the loan.

Understanding the Results

  • Principal & Interest (P&I): The core part of your mortgage payment that reduces your loan balance and covers the lender's interest.
  • Property Tax: Usually 1–2% of home value annually, collected monthly into escrow.
  • Home Insurance: Required by lenders; protects against damage and liability.
  • Total Interest: The cumulative interest you'll pay over the entire loan term — often substantial on long loans.

How Mortgage Payments Are Calculated

Mortgage payments are calculated using the standard amortization formula:

M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]

Where: P = loan principal, r = monthly interest rate (annual rate ÷ 12), n = total number of payments

For example, a $320,000 loan at 6.5% for 30 years: r = 0.065/12 ≈ 0.00542, n = 360. This gives a monthly P&I payment of approximately $2,023.

Tips to Lower Your Mortgage Payment

  • Make a larger down payment — reduces your loan balance and may eliminate PMI (required for <20% down)
  • Improve your credit score — better scores qualify for lower interest rates
  • Choose a longer term — 30-year loans have lower monthly payments than 15-year, though you pay more interest overall
  • Shop multiple lenders — even 0.25% rate difference saves thousands over the loan life
  • Consider buying points — pay upfront to permanently reduce your rate

Frequently Asked Questions

What is PMI and when is it required? +
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's purchase price. PMI typically costs 0.5–1.5% of the loan amount per year and is added to your monthly payment until you reach 20% equity.
Should I choose a 15-year or 30-year mortgage? +
A 15-year mortgage has higher monthly payments but you pay significantly less total interest and build equity faster. A 30-year mortgage has lower monthly payments, offering more cash flow flexibility. Choose based on your budget and long-term goals.
How does making extra payments affect my mortgage? +
Extra payments go directly toward principal, reducing the loan balance faster. Even one extra payment per year can shorten a 30-year mortgage by 4–5 years and save tens of thousands in interest.
What is an amortization schedule? +
An amortization schedule shows each payment's breakdown between principal and interest over the life of the loan. Early payments are mostly interest; later payments are mostly principal. This calculator generates a full month-by-month schedule.