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Mortgage Calculator

Buying a home is the largest financial decision most people ever make. A mortgage calculator lets you stress-test that decision before you commit: how much is the monthly payment, how much interest will the bank earn over 30 years, and what happens if you shorten the term to 15? Our free mortgage calculator handles principal, interest rate, loan term and down payment in one screen.

Monthly Payment

$

Loan Amount:$
Total Interest:$
Total Paid:$
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Finance

About the Mortgage Calculator

Buying a home is the largest financial decision most people ever make. A mortgage calculator lets you stress-test that decision before you commit: how much is the monthly payment, how much interest will the bank earn over 30 years, and what happens if you shorten the term to 15? Our free mortgage calculator handles principal, interest rate, loan term and down payment in one screen.

How to use it

  1. Enter the total home price or loan amount you are considering.
  2. Input your down payment amount or percentage.
  3. Set the interest rate and loan term (15, 20, or 30 years are common).
  4. Add estimated property taxes, insurance, and HOA fees for a full picture.
  5. Read your monthly payment, total interest paid, and amortization schedule.

Formula & methodology

M = P [i(1+i)^n] / [(1+i)^n - 1] where M = monthly payment, P = principal, i = monthly interest rate, n = number of months.

Common use cases

  • Comparing 15-year vs 30-year mortgage terms before applying for a loan
  • Determining how much home you can afford based on your monthly budget
  • Calculating the impact of a larger down payment on monthly payments
  • Planning for total interest costs over the full loan term
  • Understanding how interest rates affect your long-term costs

Frequently asked questions

Mortgage rates vary based on market conditions, your credit score, loan term, and down payment. As a general guide, rates fluctuate daily — compare offers from at least 3 lenders. Your rate is locked when you apply, not when you pre-qualify.
A 20% down payment avoids private mortgage insurance (PMI), but many conventional loans accept as little as 3% down. FHA loans allow 3.5% down. VA and USDA loans may require zero down. A larger down payment means lower monthly payments and less interest over time.
The acronym PITI covers the main components: Principal (loan balance reduction), Interest (cost of borrowing), Taxes (property tax), and Insurance (homeowners insurance). Many lenders also escrow PMI and HOA fees into the monthly payment. Our calculator accounts for all these factors.

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