Mortgage Calculator
Calculate monthly mortgage payments, including principal and interest breakdown, total lifetime costs, and interest paid over the life of the loan.
Calculation Results
The total amount of money borrowed from the lender.
Estimated monthly payment covering principal and interest.
The total amount you will pay over the loan term, including the down payment.
Total interest paid to the lender over the lifetime of the mortgage.
Amortization Schedule
Year-by-year breakdown of your payments, interest, and remaining balance.
| Year | Beginning Balance | Principal Paid | Interest Paid | Total Paid | Ending Balance |
|---|
How This Calculator Works
Follow these simple steps to estimate your mortgage payments:
- Enter the purchase price of the home you want to buy.
- Provide your down payment amount (typically 3% to 20% of the purchase price).
- Input the interest rate offered by your lender.
- Choose the loan term, with 30-year or 15-year fixed loans being the most common.
The calculator instantly generates your monthly P&I payment, total cost of ownership, and overall interest paid, along with an interactive yearly amortization schedule.
Formula & Calculations
The principal loan amount is the home price minus your down payment:
Principal = Home Price - Down Payment
The monthly principal and interest (P&I) payment is calculated using the standard amortization formula:
Monthly Payment = P × [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]
Where:
- P = Principal (loan amount)
- r = Monthly interest rate (Annual Interest Rate / 12 / 100)
- n = Total number of payments (Loan Term in Years × 12)
The total cost of the loan represents the sum of all monthly payments plus the initial down payment:
Total Cost = (Monthly Payment × n) + Down Payment
The total interest paid is the total cost of the loan minus the original purchase price of the home:
Total Interest = Total Cost - Home Price
Step-by-Step Calculation Examples
Standard 30-Year Fixed Mortgage
A typical home purchase using a 20% down payment on a $400,000 house at a 6.5% interest rate.
- home_price: 400000
- down_payment: 80000
- interest_rate: 6.5
- loan_term: 30
- principal: $320,000.00
- monthly_payment: $2,022.62
- total_cost: $808,142.36
- total_interest: $408,142.36
Frequently Asked Questions
What is included in a mortgage payment?
A standard mortgage payment consists of Principal and Interest (P&I). However, many homeowners choose to escrow their Property Taxes, Homeowners Insurance, and Private Mortgage Insurance (PMI) which are added to the monthly payment.
How much should I put down on a home?
While a 20% down payment is ideal to avoid paying Private Mortgage Insurance (PMI), many conventional loans allow as little as 3% to 5% down, while FHA loans start at 3.5% and VA/USDA loans allow 0% down.
How does interest rate affect my total loan cost?
Even a small change in interest rate has a massive impact over a 30-year term. For example, a 1% increase in interest rate on a $300,000 loan can cost an additional $60,000+ in interest over the lifetime of the mortgage.