Mortgage Calculator
Calculate your monthly payment, total interest, and view a detailed amortization schedule.
| Year | Principal Paid | Interest Paid | Balance |
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How to Use This Mortgage Calculator
Enter your home price, down payment, interest rate, and loan term to get an instant estimate of your monthly mortgage payment. The calculator shows you:
- Monthly payment — principal and interest only
- Total interest — how much you pay the bank over the life of the loan
- Total cost — the full amount you repay
- Amortization schedule — year-by-year breakdown of principal vs. interest
Mortgage Payment Formula
The monthly payment is calculated using: 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 (years × 12).
Tips to Lower Your Mortgage Payment
- Increase your down payment — 20% or more eliminates PMI (Private Mortgage Insurance).
- Choose a shorter term — 15-year loans have lower rates, though higher monthly payments.
- Improve your credit score — even a 20-point increase can save thousands in interest.
- Shop multiple lenders — rates vary by 0.25–0.5% between lenders.
- Buy discount points — paying upfront can lower your rate by 0.25% per point.
Frequently Asked Questions
How is my monthly mortgage payment calculated?
Your monthly payment is calculated using the standard amortization formula. It includes principal repayment and interest charges. Property taxes, homeowners insurance, and PMI are separate costs not included in this calculation.
How much house can I afford?
Most financial advisors recommend spending no more than 28% of your gross monthly income on housing costs. This includes mortgage principal, interest, property taxes, and insurance (PITI).
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage gives lower monthly payments but costs more in total interest. A 15-year mortgage has higher payments but saves significantly on interest. Use this calculator to compare both options.