Mortgage Calculator
Calculate your monthly mortgage payments and see the full amortization schedule. Plan your home purchase with confidence using our detailed breakdown.
Loan Details
20.0% of home price
Payment Summary
Monthly Payment
$2,023
Loan Amount
$320,000
Total Interest
$408,142
Total Cost
$728,142
Tips for Home Buyers
- • Aim for a down payment of at least 20% to avoid PMI (Private Mortgage Insurance)
- • A 15-year loan saves significant interest but has higher monthly payments
- • Consider property taxes and insurance, which can add $200-500/month
- • Shop around for the best interest rates - even 0.5% difference matters
Our mortgage calculator helps you understand the true cost of buying a home. It calculates your monthly principal and interest payment based on home price, down payment, loan term, and interest rate. The tool also shows the total interest paid over the life of the loan and provides an amortization schedule showing how each payment is split between interest and principal.
When to Use This Tool
- Planning to buy a home and estimating monthly payments
- Refinancing existing mortgage to see if rates are favorable
- Comparing different loan terms (15-year vs 30-year)
- Understanding how down payment affects monthly costs
- Calculating total interest paid over the life of the loan
- Planning extra payments to reduce total interest
How to Use
Calculate Monthly Payment
- Enter the home price or loan amount
- Input your down payment amount or percentage
- Enter the loan term (typically 15 or 30 years)
- Input the annual interest rate
- Click 'Calculate' to see your monthly payment and total costs
Understanding Amortization
- Early payments go mostly to interest, not principal
- Over time, more of each payment goes toward principal
- The amortization schedule shows this shift month by month
- Making extra payments reduces principal faster
Tips for Lower Monthly Payments
- Larger down payment reduces the loan amount
- Lower interest rate significantly reduces monthly cost
- Longer loan term (30 years vs 15 years) lowers payment but increases total interest
- Consider points to buy down the interest rate
Examples
Standard 30-Year Fixed
A typical 30-year fixed mortgage scenario
Input
Home price: $350,000 | Down: 20% ($70,000) | Rate: 6.5% | Term: 30 years
Result
Monthly Payment: ~$1,773 | Total Interest: ~$288,000 | Total Cost: ~$568,000
15-Year Fixed Comparison
Higher monthly but significantly less total interest
Input
Home price: $350,000 | Down: 20% ($70,000) | Rate: 6.0% | Term: 15 years
Result
Monthly Payment: ~$2,093 | Total Interest: ~$105,000 | Total Cost: ~$385,000
Lower Down Payment
PMI is required for down payments under 20%
Input
Home price: $350,000 | Down: 5% ($17,500) | Rate: 7.0% | Term: 30 years
Result
Monthly Payment: ~$2,208 | Total Interest: ~$340,000 (requires PMI)
Frequently Asked Questions
What's the difference between interest rate and APR?
The interest rate is the cost you pay each year to borrow the money, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus points, fees, and other costs, giving you a more complete picture of the loan's true cost. Always compare APR when shopping for loans.
Why is my actual monthly payment different from the calculator?
Your actual payment may include property taxes, homeowner's insurance, and PMI (Private Mortgage Insurance), which are not included in our basic calculation. For a complete picture, add these recurring costs to your calculated principal and interest payment.
Should I choose a 15-year or 30-year mortgage?
15-year mortgages have higher monthly payments but significantly lower total interest. 30-year mortgages have lower payments but cost more in total interest. Choose based on your budget, cash flow needs, and long-term financial goals.
What is PMI and when do I need it?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20% of the home's value. It protects the lender if you default. PMI typically costs 0.5% to 1% of the loan amount annually and can be removed once you reach 20% equity.
How do extra payments affect my mortgage?
Any extra payment above your regular monthly amount goes directly to principal, reducing the balance faster. This can save years of payments and tens of thousands in interest. Even small extra payments compound significantly over time.
Pro Tips
- •Get quotes from multiple lenders - even 0.25% difference means thousands over the loan life
- •Consider buying points to lower your rate if you plan to stay long-term
- •Round up your payment to the nearest $100 to pay off faster without feeling it
- •Refinance when rates drop 1-2% below your current rate, considering closing costs
- •Keep your mortgage payment under 28% of gross monthly income for financial stability
- •Run the numbers with different down payments to find your optimal strategy