A mortgage spreads the cost of a home over many years through fixed monthly payments. This calculator estimates your loan amount, monthly payment, and total interest based on home price, down payment, rate, and term.
How to use this calculator
- Enter the purchase price of the home.
- Enter your down payment amount.
- Enter the annual interest rate as a percentage.
- Enter the loan term in years.
- Review loan amount, monthly payment, total interest, and total payment.
Formula
Loan amount equals home price minus down payment. Monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly rate, and n is the number of payments.
Example
A $350,000 home with a $70,000 down payment at 6.5% over 30 years results in a $280,000 loan with a monthly payment of about $1,769 and roughly $356,720 in total interest.
Frequently asked questions
- Does this include property taxes and insurance?
- No. This calculator covers principal and interest only. Taxes, homeowners insurance, HOA fees, and PMI are not included.
- How does a larger down payment affect my mortgage?
- A larger down payment reduces the loan amount, which lowers monthly payments and total interest paid over the life of the loan.
- What is an amortization schedule?
- An amortization schedule shows how each payment splits between principal and interest over time. Early payments are mostly interest; later payments are mostly principal.
- How is the monthly mortgage payment calculated?
- Payments use the standard amortization formula based on loan amount, annual interest rate, and term. Fixed-rate loans keep the same payment for the life of the loan.
- What is PMI and when do I need it?
- Private mortgage insurance is often required when your down payment is below 20%. PMI adds to your monthly housing cost until you reach sufficient equity.
- Should I choose a 15-year or 30-year mortgage?
- A 15-year loan has higher monthly payments but far less total interest. A 30-year loan improves cash flow but costs more over time.
- How much house can I afford?
- Lenders often use debt-to-income ratios, but you should also budget for maintenance, taxes, insurance, and savings. Use our Home Affordability calculator for a DTI-based estimate.
- Does making extra payments save interest?
- Yes. Extra principal payments reduce the balance faster and cut total interest. Use the Mortgage Payoff vs Invest calculator to compare prepayment with investing.
- What is the difference between interest rate and APR?
- The interest rate is the cost of borrowing the principal. APR includes certain fees and gives a broader view of loan cost. This calculator uses the interest rate only.
- Can I use this for refinancing?
- This calculator estimates a new purchase loan. For refinance comparisons, use the Mortgage Refinance calculator with your current balance and remaining term.