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ToolPrime

Mortgage Calculator

Enter your loan amount, interest rate, and loan term to instantly see monthly payments, total interest paid, and total cost. Includes a visual principal vs interest chart and full yearly amortization schedule.

Loan Amount: $240,000.00
Monthly Payment
$1,516.96
Total Interest
$306,106.77
Total Cost
$546,106.77

Principal vs Interest Over Time

PrincipalInterest

How to Use the Mortgage Calculator

  1. Enter the home price and your down payment (dollar amount or percentage)
  2. Set the interest rate and choose a loan term (15, 20, or 30 years)
  3. View your monthly payment, total interest, and total cost instantly
  4. Check the principal vs interest chart to see how payments shift over time
  5. Expand the full amortization schedule for a year-by-year breakdown

Browse our pre-calculated mortgage payment pages for instant answers to common scenarios like "$200,000 mortgage at 5%" or "$500,000 mortgage at 7%". Over 150 combinations are available.

What Is a Mortgage Calculator?

A mortgage calculator is a financial tool that estimates your monthly mortgage payment based on the loan amount, interest rate, and loan term. It uses the standard amortization formula to compute the fixed monthly payment that will fully pay off the loan by the end of the term, including both principal and interest.

Understanding your mortgage payment before committing to a home purchase is one of the most important steps in financial planning. A mortgage calculator helps you compare different scenarios — varying the down payment, adjusting the interest rate, or choosing between a 15-year and 30-year term — so you can find the option that fits your budget. It also reveals the total interest you will pay over the life of the loan, which is often a surprising amount that exceeds the original loan balance for longer terms. Use this tool to make informed decisions about the biggest financial commitment most people ever make.

Common Use Cases

Home Buying Planning

Determine how much house you can afford by testing different price points, down payments, and interest rates before visiting lenders or realtors.

Refinancing Analysis

Compare your current mortgage payment to a potential refinanced loan to see how much you could save with a lower interest rate or shorter term.

Down Payment Optimization

Experiment with different down payment amounts to understand how they affect monthly payments and total interest paid over the life of the loan.

Budget Forecasting

Project your housing costs accurately for monthly and yearly budgets, ensuring your mortgage payment stays within the recommended 28% of gross income.

Mortgage Tips & Best Practices

Consider a 15-Year Term

A 15-year mortgage has higher monthly payments but dramatically reduces total interest. On a $300,000 loan at 6.5%, you save over $200,000 in interest compared to 30 years.

Put 20% Down When Possible

A 20% down payment eliminates Private Mortgage Insurance (PMI), which typically costs 0.5%–1% of the loan annually, saving you hundreds per month.

Shop Multiple Lenders

Even a 0.25% difference in interest rate can save tens of thousands over the life of a 30-year mortgage. Always get quotes from at least three lenders.

Account for Total Housing Cost

Your monthly mortgage payment is only part of housing costs. Budget for property taxes, homeowners insurance, HOA fees, and maintenance (about 1% of home value per year).

Mortgage Term Comparison ($300,000 at 6.5%)

Mortgage Term Comparison ($300,000 at 6.5%)
TermMonthly PaymentTotal InterestTotal Cost
15 years$2,613$170,388$470,388
20 years$2,239$237,260$537,260
30 years$1,896$382,633$682,633

Frequently Asked Questions

How is the monthly payment calculated?
The calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of payments. This gives you the fixed monthly payment that pays off the loan exactly by the end of the term.
Does the calculator include taxes and insurance?
No. This calculator computes principal and interest only. Your actual monthly housing cost will also include property taxes, homeowners insurance, and possibly PMI and HOA fees. A common rule of thumb is to add 25-30% to the principal and interest payment for these costs.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal (reducing your loan balance) and interest over the life of the loan. Early payments are mostly interest, while later payments are mostly principal. The schedule helps you understand how your equity builds over time.
Is my financial data stored anywhere?
No. All calculations happen entirely in your browser using JavaScript. No data is ever sent to a server or stored anywhere.
How does down payment affect my mortgage?
A larger down payment reduces your loan amount, which lowers both your monthly payment and total interest paid. Putting down at least 20% also eliminates the need for Private Mortgage Insurance (PMI), saving you an additional 0.5%–1% of the loan amount per year.

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