Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and view an amortization schedule. Plan your home purchase with confidence.

The Mortgage Payment Formula

M = P × r(1+r)n / (1+r)n - 1
M = Monthly mortgage payment
P = Principal (loan amount = Home Price - Down Payment)
r = Monthly interest rate (annual rate / 12)
n = Total number of payments (loan term in years × 12)

Understanding Your Mortgage

A mortgage payment typically consists of four components, often called PITI:

P
Principal The amount borrowed
I
Interest Cost of borrowing
T
Taxes Property taxes
I
Insurance Homeowners insurance

This calculator focuses on Principal and Interest (PI). Add taxes and insurance for your total payment.

Calculate Your Mortgage

Mortgage Calculation Examples

Example 1: First-Time Home Buyer

Given: $350,000 home with $35,000 (10%) down payment at 6.5% interest for 30 years.

Solution:

Loan Amount = $350,000 - $35,000 = $315,000

r = 0.065/12 = 0.00542, n = 360

Monthly P&I = $1,989.56

Total Payments = $716,241.60

Total Interest = $401,241.60

Example 2: 20% Down Payment

Given: $400,000 home with $80,000 (20%) down payment at 6.25% for 30 years.

Solution:

Loan Amount = $320,000

Monthly P&I = $1,969.29

Total Payments = $708,944.40

Total Interest = $388,944.40

20% down avoids PMI and reduces interest significantly!

Example 3: 15 vs 30 Year Comparison

Given: $300,000 loan at 6% interest - compare 15-year vs 30-year terms.

30-Year:

Monthly: $1,798.65 | Total Interest: $347,514.57

15-Year:

Monthly: $2,531.57 | Total Interest: $155,682.45

Result: 15-year saves $191,832 in interest with $733 more monthly!

Example 4: With Taxes and Insurance

Given: $250,000 loan, 6.5% rate, 30 years, $3,600 annual taxes, $1,200 annual insurance.

Solution:

Monthly P&I = $1,580.17

Monthly Taxes = $3,600 / 12 = $300

Monthly Insurance = $1,200 / 12 = $100

Total Monthly Payment = $1,980.17

Example 5: Interest Rate Impact

Given: $400,000 loan for 30 years - compare rates of 5%, 6%, and 7%.

At 5%: Monthly $2,147.29 | Total Interest $373,023.14

At 6%: Monthly $2,398.20 | Total Interest $463,353.35

At 7%: Monthly $2,661.21 | Total Interest $558,036.06

A 2% rate difference = $185,013 more in interest over the loan!

About Mortgages

What is a Mortgage?

A mortgage is a loan used to purchase a home, where the property serves as collateral. The loan is repaid over time through monthly payments that include principal and interest.

Down Payment Considerations

  • 20% down: Avoids Private Mortgage Insurance (PMI), best rates
  • 10% down: Lower upfront cost, but requires PMI
  • 5% down: Minimum for conventional loans, higher PMI
  • 0% down: VA loans (military) or USDA loans (rural areas)

Loan Term Comparison

  • 30-year: Lower monthly payment, more total interest
  • 15-year: Higher payment, less interest, lower rate
  • 20-year: Middle ground between payment and interest savings

Additional Costs to Consider

  • Property Taxes: Typically 1-2% of home value annually
  • Homeowners Insurance: Usually $1,000-$3,000 annually
  • PMI: 0.5-1% of loan amount annually (if under 20% down)
  • HOA Fees: Varies by community
  • Maintenance: Budget 1% of home value annually

Tips for Home Buyers

  • Get pre-approved before house hunting
  • Compare rates from multiple lenders
  • Consider all costs, not just the monthly payment
  • Avoid stretching your budget to the maximum
  • Make extra payments when possible to reduce interest