Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and amortization schedule. Includes down payment, taxes, and extra payment options.
How to Use the Mortgage Calculator
1. Enter the home price — the total purchase price of the property.
2. Enter your down payment — the amount you pay upfront; a larger down payment reduces the loan amount and may lower your rate.
3. Set the interest rate and term — the annual rate and number of years; common terms are 15, 20, and 30 years.
4. Add an extra payment (optional) — see how much interest you save and how much sooner you pay off the loan.
The Mortgage Payment Formula
Where M is the monthly payment, P is the loan amount (price − down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). Property taxes, insurance, and PMI are not included in this estimate.
Frequently Asked Questions
How is a monthly mortgage payment calculated?
A fixed-rate mortgage payment uses the amortization formula M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). This formula spreads principal and interest evenly so the loan is paid off exactly at the end of the term.
What does an amortization schedule show?
An amortization schedule breaks every payment into its principal and interest portions. Early payments are mostly interest; later payments are mostly principal. The schedule shows the remaining balance after each payment and how much total interest you will pay over the life of the loan.
How much do extra payments save on a mortgage?
Extra payments apply directly to principal, which reduces the balance that interest is charged on. Even a small recurring extra payment can cut years off the term and save tens of thousands in interest. For example, an extra $100 per month on a $300,000 30-year loan at 6% saves roughly $46,000 in interest and pays the loan off about 4 years early.
What's included in a mortgage payment besides principal and interest?
Most mortgage payments also include property taxes, homeowners insurance, and — if your down payment is under 20% — private mortgage insurance (PMI). These are called escrow items. This calculator shows principal and interest; add your estimated taxes and insurance to get a true all-in monthly cost.