Mortgage Calculator
Monthly mortgage payment and total cost.
This calculator helps you estimate what you'll actually pay before sitting down with a lender. Enter the home price, down payment, loan term, and interest rate to see your monthly principal and interest payment, total interest over the life of the loan, and full repayment amount. Use it to compare the real financial difference between a 15-year and 30-year mortgage, to see how a larger down payment changes your monthly obligation, or to check whether a specific home price is affordable at current market rates. Important: this calculator covers principal and interest only. Your actual monthly housing cost will also include property taxes, homeowner's insurance, and — if your down payment is below 20% — private mortgage insurance (PMI). For a realistic budget, add those local figures to the result shown here.
See also: Loan Repayment Methods: Equal Payment vs. Equal Principal, Mortgage Total Cost: Beyond Principal and Interest, Early Repayment Effects: Save Interest and Shorten Term, Variable Rate Risks: What Changes When Rates Move · Loan Calculator, Compound Interest, Break-Even Calculator.
When this calculator helps most
Use when comparing fixed-rate amortizing loans for a home purchase or refinance quote — especially 15- vs 30-year trade-offs, or how a larger down payment reduces borrowed principal. Pair the P&I result with local tax/insurance estimates before you decide affordability.
What each input means
- Home price — Purchase price (or appraised value) used as the basis for loan amount after down payment. (your currency)
- Down payment — Cash paid at closing; loan principal = home price − down payment. (same currency)
- Annual interest rate — Nominal yearly rate for the amortizing loan (fixed-rate assumption). (% per year)
- Loan term — Amortization period; converted to months in the payment formula. (years)
Input mistakes to avoid
- •Enter loan amount as price minus down payment (or verify the tool auto-computes it the same way your lender does).
- •Use the same rate convention as your quote (annual nominal APR for fixed loans).
- •Do not treat P&I as “housing budget” without adding tax, insurance, and PMI if applicable.
Mortgage Calculator
+ Annual Property Tax / Annual Insurance (optional)
Formula
Examples
$350,000 Home, 20% Down, 7% for 30 Years
Standard first-home purchase with a full 20% down payment.
→ Loan: $280,000 | Monthly P&I: $1,862 | Total interest: $390,462 | Total paid: $670,462
$500,000 Home, 10% Down, 6.5% for 30 Years
Lower down payment at a slightly lower rate — common first-time buyer scenario.
→ Loan: $450,000 | Monthly P&I: $2,844 | Total interest: $573,834 | Note: PMI likely required
$300,000 — 15-Year vs 30-Year at 7%
Direct comparison of term length on the same loan amount and rate.
→ 15-year: $2,696/mo, $185,271 interest | 30-year: $1,996/mo, $418,527 interest | 15-year saves $233,256 but costs $700/mo more
$250,000 Home, 5% Down, 7.25% for 30 Years
First-time buyer with minimal down payment — illustrates the PMI scenario.
→ Loan: $237,500 | Monthly P&I: $1,620 | Total interest: $345,996 | PMI required until 20% equity reached
Add Taxes/Insurance: $450,000 Home, 20% Down, 6.75%
Monthly total including estimated property tax ($5,400/yr) and insurance ($1,200/yr).
→ P&I ≈ $2,321 | Tax ≈ $450/mo | Insurance ≈ $100/mo | Total ≈ $2,871/mo
How to read your results
- →Monthly P&I stays constant for a fixed-rate loan; early payments are mostly interest, later payments mostly principal.
- →Total interest equals (monthly payment × number of payments) − initial loan amount — use it to compare 15- vs 30-year options.
- →A lower monthly P&I does not automatically mean cheaper overall — longer terms usually increase lifetime interest.
- →Add property tax, insurance, HOA, and PMI (if applicable) for a realistic housing budget.
What this result means
The monthly figure is the constant payment that retires the loan at the stated fixed rate — a budgeting anchor for principal and interest, not your full housing payment.
Common Pitfalls
- ⚠️Forgetting taxes, insurance, and PMI — P&I alone understates monthly housing cost.
- ⚠️Choosing purely by monthly payment — total interest can differ by six figures.
- ⚠️Not checking prepayment penalties and PMI removal rules.
- ⚠️Assuming rates won’t move before closing — budget a buffer.
Tips
- ✓The payment shown is principal + interest only. Always add property taxes, insurance, and PMI for your actual monthly cost.
- ✓Compare the 15-year option seriously. The monthly payment is higher, but the lifetime interest savings are often six figures.
- ✓One extra mortgage payment per year consistently saves years off a 30-year term. Even $100/month extra principal makes a meaningful long-term difference.
- ✓Before locking a rate, estimate your payment at 0.5% higher — rates can move before closing.
- ✓The 20% down payment threshold is important primarily to eliminate PMI. Above 20%, the marginal benefit of a larger down payment decreases.
How to check your results
- ✓Compare to your lender’s Loan Estimate: P&I should match within rounding for the same principal, rate, and term.
- ✓Spot-check with spreadsheet PMT(rate/12, months, -principal) or an amortization schedule.
Warnings & Limitations
- ⚠️P&I does not include property tax, insurance, HOA fees, or PMI — add them for a realistic monthly total.
- ⚠️Rates can change before closing — plan a buffer.
- ⚠️Terms vary by lender and jurisdiction — confirm contract details and local rules.
What this calculator does not tell you
- –Closing costs, points, escrow reserves, and lender-specific fees.
- –ARM teaser rates, interest-only periods, or balloon payments.
- –Underwriting limits (DSR/LTV) — approval depends on income, credit, and policy.
- –Property appreciation, maintenance, or HOA — total cost of ownership is broader than P&I.
Frequently Asked Questions
Does this include taxes and insurance?
No. The result shows principal & interest (P&I) only. Add property tax, insurance, and PMI for a realistic monthly cost.
15-year vs 30-year — what changes?
15-year loans have higher monthly payments but much lower total interest than 30-year loans.
Sources & References
Editorial & review note
We verify fixed-rate P&I against standard amortization formulas; tax, insurance, and PMI are explained beside the result—not baked into payment math—because county and program rules differ. Non-U.S. mortgage schemes are summarized in FAQ only.
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Loan Repayment Methods: Equal Payment vs. Equal Principal
Compare amortization methods, interest impact, and monthly payment profiles to pick a plan that fits your cash flow.
Mortgage Total Cost: Beyond Principal and Interest
Understand the full monthly cost of home ownership: taxes, insurance, PMI, and how they affect affordability.
Early Repayment Effects: Save Interest and Shorten Term
See how extra principal payments reduce total interest and loan term, and when prepayment penalties apply.
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Disclaimer: This calculator provides estimates based on principal and interest only. It does not include property taxes, homeowner's insurance, HOA fees, PMI, or closing costs. Actual mortgage terms depend on creditworthiness, property appraisal, lender policies, and prevailing market rates. Consult a licensed mortgage professional before making home-buying decisions.