Mortgage Calculator
Estimate your monthly mortgage payment for fixed-rate home loans. Calculate principal and interest payments, total interest costs, and loan balances based on your home price, down payment, interest rate, and loan term.
Calculate Mortgage Payment
Enter your home purchase price, down payment, interest rate, and term.
Estimated Monthly Payment
Quick Summary
This mortgage calculator helps home buyers and homeowners quickly estimate monthly fixed-rate loan payments. By adjusting your home price, down payment, interest rate, and loan term, you can instantly see:
- Monthly Principal & Interest: The core monthly payment required to repay your lender.
- Loan Amount: The principal balance borrowed after deducting your down payment.
- Total Interest Cost: The cumulative interest expense paid over the full life of the mortgage.
- Total Payments: The grand total of all monthly payments combined.
This estimate shows principal and interest only. It does not include property taxes, homeowners insurance, HOA fees, PMI, closing costs, or other expenses.
How to Use the Mortgage Calculator
- Enter the target Home Price (the total purchase price of the property).
- Enter your planned Down Payment amount (the badge automatically calculates your down payment percentage).
- Enter the estimated annual Interest Rate (APR).
- Select your preferred Loan Term (such as 30 years or 15 years).
- Click Calculate Payment to display your monthly breakdown.
- Use Reset to clear inputs and perform another calculation.
Mortgage Payment Formula
The regular monthly principal and interest payment for a fixed-rate mortgage is calculated using the standard amortization formula:
Where:
- M: Monthly Principal & Interest payment
- P: Principal loan amount (Home Price ∀™ Down Payment)
- r: Monthly interest rate (Annual Interest Rate ÷ 12 ÷ 100)
- n: Total number of monthly payments (Loan Term in Years À” 12)
Zero-Interest Case
If the annual interest rate is 0%, the formula simplifies to equal monthly principal distributions:
Worked Example
Example: $500,000 Purchase with $100,000 Down Payment at 7% Interest (30 Years)
- Home Price: $500,000
- Down Payment (20%): $100,000
- Loan Amount (P): $400,000
- Interest Rate: 7.00% annual (r = 0.07 ÷ 12 = 0.0058333)
- Term: 30 years (n = 360 monthly payments)
Plugging these values into the formula yields:
Monthly Principal & Interest: $2,661.21 / month
Total Interest Paid (30 Years): $558,035.59
Total Payments: $958,035.59
What This Calculator Includes vs. Does Not Include
What This Calculator Includes
- Loan Principal: The base amount borrowed from your lender.
- Fixed Interest: The interest cost charged on the remaining principal balance.
- Monthly Principal & Interest: The core monthly mortgage payment amount.
- Total Interest Cost: The cumulative interest expense over the full loan term.
- Total Payments: Sum of all monthly principal and interest payments.
What This Calculator Does Not Include
- Property Taxes: State and local real estate taxes.
- Homeowners Insurance: Required hazard and property insurance.
- Private Mortgage Insurance (PMI): Required on conventional loans with down payments under 20%.
- HOA Fees: Homeowners association or condo maintenance dues.
- Closing Costs & Lender Fees: Loan origination, appraisal, title, and escrow closing expenses.
- Extra Payments: Prepayments or principal reduction acceleration schedules.
Tips for Buyers and Homeowners
- Compare Loan Terms: Shortening a loan from 30 years to 15 years increases monthly payments but significantly reduces total lifetime interest costs.
- Understand Interest Rate Impact: Even small variations in annual interest rate (e.g. 0.5%) have a major cumulative impact over 30 years.
- Understand Down Payment Impact: A larger down payment reduces the principal loan amount, lowering monthly payments and eliminating PMI requirements.
- Review Total Interest, Not Just Monthly Payment: Evaluate the total lifetime cost of borrowing alongside your monthly cash flow.
- Treat Results as Estimates: Always consult licensed mortgage lenders for official loan estimates and pre-approval offers.
Common Mistakes to Avoid
- Confusing Home Price with Loan Amount: Remember that your loan amount equals the home price minus your cash down payment.
- Assuming Results Include Taxes & Insurance: This calculator estimates Principal & Interest only; remember to budget for escrow items (taxes, insurance, HOA).
- Comparing Only Monthly Payments: Lower monthly payments over a longer term often result in drastically higher total interest paid.
- Entering Wrong Interest Rates: Ensure you enter the annual interest rate (APR), not a monthly rate.
Frequently Asked Questions (FAQ)
What is a mortgage payment?
A mortgage payment is a regular monthly payment made to your lender to repay a home loan, consisting of principal repayment and interest charges.
How is a mortgage payment calculated?
Fixed-rate mortgage payments are calculated using your principal loan amount, monthly interest rate, and total repayment months using the standard amortization formula.
What does principal and interest mean?
Principal is the portion of your payment that directly reduces your remaining loan balance. Interest is the fee charged by your lender for borrowing the principal.
Does this calculator include property taxes?
No. Property taxes, homeowners insurance, HOA fees, and PMI vary by property location and provider and are excluded from this core principal and interest calculation.
Does a larger down payment lower the monthly payment?
Yes. A larger down payment reduces the principal loan amount, which directly lowers both your monthly payment and total interest cost.
How does the interest rate affect my mortgage payment?
Higher interest rates increase the monthly interest charge, raising both your required monthly payment and the overall interest paid over the life of the mortgage.
What is the difference between a 15-year and 30-year mortgage?
A 15-year mortgage requires higher monthly payments due to faster principal payoff but charges substantially less total interest compared to a 30-year loan.
Can I use this calculator for a zero-interest loan?
Yes. Setting the interest rate to 0% calculates a linear division of the principal loan amount across the total repayment term with $0 total interest.