Mortgage Calculator
Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1]
This mortgage calculator factors in your down payment, interest rate, and loan term to show your monthly payment. The standard amortization formula is used, where P is the loan amount (home price minus down payment), r is the monthly interest rate, and n is the total months.
How to use
- Enter the Home Price and Down Payment (%).
- Set your Interest Rate (%) and Loan Term in years.
- Read the Monthly Payment, loan amount, and total interest.
Example
A $300,000 home with 20% down leaves a $240,000 loan. At a 6.5% rate over 30 years, the monthly payment is about $1,516.96, with roughly $306,103 in total interest.
Frequently Asked Questions
How much house can I afford?
A common rule: your monthly mortgage payment should not exceed 28% of your gross monthly income.
What is a good down payment?
20% is traditional and avoids PMI (private mortgage insurance). FHA loans allow as low as 3.5%.
15-year vs 30-year mortgage?
15-year has higher monthly payments but much less total interest. 30-year is more affordable monthly but costs more overall.
Does this include property taxes, insurance, and PMI?
No, the monthly figure here is principal and interest only, which lenders call P&I. Your actual escrow payment usually adds property taxes, homeowners insurance, and private mortgage insurance if your down payment is under 20%. Those extras can add several hundred dollars a month, so budget for a total payment higher than the number shown.
How much does a small change in interest rate affect my payment?
Even half a percentage point makes a noticeable difference over a 30-year loan. On a $240,000 loan, going from 6.5% to 7.0% raises the monthly payment by roughly $80 and adds about $29,000 in total interest. This is why locking a lower rate or improving your credit score before applying can save thousands.