Mortgage Calculator

Calculate your monthly mortgage payments and total interest

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What is a Mortgage Calculator?

A mortgage calculator is a financial planning tool that estimates your monthly payment on a home loan based on the principal amount, interest rate, and loan term. It breaks down each payment into principal and interest components, helping you understand the true cost of homeownership over time.

Mortgages are typically the largest financial commitment most people make. Understanding your monthly obligations before signing a loan agreement is critical for budgeting. A mortgage calculator also reveals how much total interest you will pay over the life of the loan, which can be eye-opening when comparing 15-year versus 30-year terms.

How to Use

  1. 1Enter the home price or total loan amount you plan to borrow.
  2. 2Input the annual interest rate offered by your lender.
  3. 3Select the loan term in years (commonly 15 or 30 years).
  4. 4Click Calculate to see your monthly payment and total interest paid.

Formula

M = P * [r(1+r)^n] / [(1+r)^n - 1]

Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments (years x 12).

Examples

1. $300,000 at 6.5% for 30 years

Monthly rate = 0.065/12 = 0.005417. Number of payments = 360. M = 300,000 x [0.005417(1.005417)^360] / [(1.005417)^360 - 1] = $1,896.20 per month. Total paid over 30 years: $682,633.

2. $250,000 at 5.0% for 15 years

Monthly rate = 0.05/12 = 0.004167. Payments = 180. M = 250,000 x [0.004167(1.004167)^180] / [(1.004167)^180 - 1] = $1,976.98 per month. Total interest: $105,857.

3. $400,000 at 7.0% for 30 years

Monthly rate = 0.07/12 = 0.005833. Payments = 360. M = 400,000 x [0.005833(1.005833)^360] / [(1.005833)^360 - 1] = $2,661.21 per month. Total interest paid: $558,036.

Frequently Asked Questions

What is included in a mortgage payment?▾
A basic mortgage payment covers principal (the amount borrowed) and interest. However, many lenders also include property taxes, homeowners insurance, and private mortgage insurance (PMI) in your monthly escrow payment, often called PITI.
How does the interest rate affect my payment?▾
Even small rate changes have a big impact. On a $300,000 30-year loan, going from 6.0% to 7.0% increases your monthly payment by about $200 and adds roughly $70,000 in total interest over the life of the loan.
Should I choose a 15-year or 30-year mortgage?▾
A 15-year mortgage has higher monthly payments but saves dramatically on interest. A 30-year mortgage offers lower monthly payments and more flexibility. Choose based on your monthly budget and long-term financial goals.
What is an amortization schedule?▾
An amortization schedule shows a breakdown of each monthly payment into principal and interest over the entire loan term. Early payments are mostly interest, while later payments shift toward principal reduction.
Can I pay off my mortgage early?▾
Most mortgages allow extra payments toward principal without penalty, though some loans have prepayment penalties. Making even one extra payment per year can shave years off your loan and save thousands in interest.