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Mortgage Calculator

Estimate the core monthly mortgage payment before you start house hunting or refinancing. Use the home price, down payment, interest rate, and loan term to compare affordable scenarios and understand the long-term borrowing cost.

The total purchase price of the home.

The amount you pay upfront.

The annual mortgage interest rate.

How to Use

1 Enter the home price.
2 Enter your down payment amount.
3 Enter the annual interest rate.
4 Select the loan term (15, 20, or 30 years).
5 Click Calculate.
6 Review your monthly payment, total interest, and total cost.

Formula

Monthly Payment M = P x [r(1+r)^n] / [(1+r)^n - 1]
Where P = loan amount, r = monthly rate, n = total payments

Example Calculation

A $350,000 home with $70,000 down payment, 6.5% interest rate, and a 30-year term:

Loan Amount = $350,000 - $70,000 = $280,000
Monthly Payment = $1,770.35
Total Interest = $357,326
Total Cost = $637,326

This example covers principal and interest only, not taxes, insurance, HOA fees, or PMI.

Why It Matters

Mortgage decisions are usually the biggest borrowing decisions people make. A small shift in rate, down payment, or term can change your payment by hundreds of dollars per month and your total interest by tens of thousands over the life of the loan.

Who Uses This Calculator?

  • • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
  • • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
  • • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.

Frequently Asked Questions

How much house can I afford?
A common rule is that your monthly mortgage payment should not exceed 28% of your gross monthly income. For example, if you earn $6,000/month, your mortgage payment should be under $1,680. Use this calculator to test different price points.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but much less total interest. A 30-year mortgage has lower monthly payments but costs more over time. For a $280,000 loan at 6.5%, a 15-year term saves over $200,000 in interest.
What is PMI and do I need it?
PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20% of the home price. It adds $50-$200/month to your payment. PMI can be removed once you reach 20% equity.
Does this include property taxes and homeowners insurance?
No. This calculator estimates the principal and interest portion of the mortgage payment. Your real monthly housing payment may also include property taxes, homeowners insurance, HOA dues, and PMI.
How does the interest rate affect my payment?
Even a small rate change has a big impact. On a $280,000 30-year loan, the difference between 6% and 7% is about $185/month or $66,600 over the life of the loan.
How much should I put down on a house?
A larger down payment reduces the loan amount, monthly payment, and total interest. Twenty percent is a common target because it often avoids PMI, but many buyers use smaller down payments if they need to preserve cash for closing costs, repairs, or reserves.

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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.