🏠 Mortgage Calculator
Enter loan amount, interest rate and term to calculate monthly payment.
What is this tool?
A mortgage is a long-term loan used to purchase real estate, in which the property itself serves as collateral. The Mortgage Calculator estimates your monthly payment based on the loan amount (principal), interest rate, and loan term, giving you a clear picture of affordability before you commit. Mortgages are the largest financial obligation most households will ever take on, so understanding how the numbers interact is essential. The modern amortized mortgage became widespread in the United States during the 1930s, when the Federal Housing Administration (FHA) introduced the 30-year fixed-rate loan to make homeownership accessible. Since then, mortgages have evolved to include adjustable-rate, government-backed (VA, USDA), and conventional loans. This calculator focuses on the core mechanics shared by all fixed-rate mortgages: how much you borrow, the annual interest rate, and how long you take to repay. By adjusting these inputs, you can compare scenarios, see how a larger down payment or shorter term affects monthly cost and total interest, and plan your budget with confidence.How it works
Monthly payment M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate / 12), and n is the number of monthly payments (term in years × 12). Example: a $300,000 loan at 6.5% annual interest for 30 years gives r = 0.005417 and n = 360, so M ≈ $1,896. Total repaid ≈ $682,800.How to use
- Enter the home price or total loan amount you plan to borrow.
- Enter the annual interest rate as a percentage (e.g., 6.5 for 6.5%).
- Enter the loan term in years — most common are 15, 20, or 30 years.
- Optionally enter your down payment and, if known, annual property taxes and insurance for a fuller picture.
- Click Calculate. The tool shows the monthly principal-and-interest payment, total interest paid over the life of the loan, and total cost. Adjust inputs to compare how rate, term, and down payment affect affordability.
Reference Table
| Loan Amount | Rate | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $200,000 | 6.5% | 30 yr | $1,264 | $255,040 |
| $300,000 | 6.5% | 30 yr | $1,896 | $382,640 |
| $400,000 | 6.5% | 30 yr | $2,528 | $510,120 |
| $300,000 | 6.0% | 15 yr | $2,532 | $155,680 |
| $300,000 | 6.5% | 15 yr | $2,613 | $170,320 |
Frequently Asked Questions
Frequently Asked Questions
What is the difference between a fixed-rate and adjustable-rate mortgage (ARM)?
A fixed-rate mortgage keeps the same interest rate for the entire loan term, giving you predictable payments. An adjustable-rate mortgage (ARM) has a fixed introductory period (often 5, 7, or 10 years) after which the rate adjusts periodically based on market conditions. ARMs offer lower initial payments but carry the risk of higher payments later.
What is PMI, and when is it required?
Private Mortgage Insurance (PMI) protects the lender if you default, and is usually required on conventional loans when your down payment is less than 20% of the home price. PMI typically costs 0.3%–1.5% of the original loan per year and can be cancelled once your equity reaches 20%. It is separate from property taxes and homeowners insurance.
How does the down payment affect my loan?
A larger down payment reduces the principal you must borrow, lowering both your monthly payment and total interest. It may also help you qualify for a better interest rate and avoid PMI. However, tying up too much cash in a down payment can leave you short for closing costs, moving expenses, and an emergency fund.
Are property taxes and insurance included?
This calculator focuses on principal and interest to keep the math transparent. In reality, your lender may collect property taxes and homeowners insurance (and PMI, if applicable) through an escrow account, adding hundreds of dollars to your effective monthly payment — sometimes called PITI (Principal, Interest, Taxes, Insurance).
Tips & Advice
Even a small difference in interest rate can change what you pay over decades, so improving your credit score before applying can save tens of thousands. Shorter 15-year terms build equity faster and cost far less in interest, but require higher monthly payments — run both scenarios to find your comfort zone. Making one extra payment per year, or rounding up your payment, can shave years off a 30-year loan. Always compare Loan Estimates from at least three lenders, including rate, points, and fees, and factor in the full PITI plus maintenance when deciding what you can truly afford. Keep an emergency fund separate so a job loss or repair does not jeopardize your home.For official mortgage guidance, visit the Consumer Financial Protection Bureau (CFPB).