Estimate your monthly payment, total interest, and amortization schedule.
A mortgage calculator is a tool that estimates your monthly mortgage payment based on the home price, down payment, interest rate, and loan term. It helps you understand how much house you can afford before you talk to a lender. Whether you are a first-time homebuyer or refinancing an existing loan, this calculator gives you a clear picture of your monthly obligation.
Unlike a simple estimate, this calculator uses the standard amortization formula that lenders use. That means the result you see here is very close to what a bank would quote you — minus taxes, insurance, and fees, which vary by location.
Using the calculator is simple:
The formula lenders use for a fixed-rate mortgage is:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Where M is the monthly payment, P is the principal (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (years × 12).
This formula balances principal and interest so that the loan is fully paid off at the end of the term. In the early years, most of your payment goes toward interest. Over time, more goes toward principal.
Let's say you buy a $350,000 home with a 20% down payment ($70,000). You borrow $280,000 at 6.5% for 30 years.
That means you pay more in interest than the original loan amount. This is why the interest rate and loan term matter so much.
No. This calculator estimates principal and interest only. Property taxes, homeowners insurance, and PMI are additional costs that vary by location and lender.
Conventional loans often require 5-20% down. FHA loans may allow as little as 3.5%. A 20% down payment typically avoids PMI.
A 15-year mortgage has higher monthly payments but much lower total interest. A 30-year mortgage has lower monthly payments but costs more overall.
Yes. Making extra payments toward the principal reduces your balance faster and lowers total interest. Check with your lender for any prepayment penalties.
Borrowers with higher credit scores usually get lower interest rates. Even a 1% difference can save tens of thousands over 30 years.
Yes, you can use it to estimate a refinanced mortgage by entering the new loan amount, rate, and term. For a detailed comparison, use our Refinance Calculator.
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