Financial Calculators
Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and the full cost of a home loan based on price, down payment, rate, and term.
Quick guide
Enter the home price, your down payment, the annual interest rate, and the loan term. The calculator subtracts the down payment to find the loan, then shows the monthly principal-and-interest payment and the total interest over the life of the mortgage. Taxes, insurance, and fees are not included, so budget for them separately.
Read the full explanationHow It Works
A fixed-rate mortgage splits each monthly payment into principal and interest. Early payments are mostly interest; as the balance falls, more of each payment builds equity.
Formula Used
M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12), and n is the number of monthly payments.
Example Calculation
A $350,000 home with $70,000 down at 6.5% for 30 years gives a loan of $280,000 and a monthly payment of about $1,770, with roughly $357,000 in total interest.
Practical Use Cases
- Compare homes at different price points before making an offer.
- See how a larger down payment lowers your monthly cost.
- Test how a shorter term trades a higher payment for far less interest.
Use This Calculator Step by Step
- Enter the property price and the down payment separately; the calculator subtracts them to find the loan balance.
- Use the contractual annual interest rate and select the term in years. Keep these assumptions the same when comparing offers.
- Read monthly principal and interest together with total interest; budget separately for taxes, insurance, fees, and other housing costs.
Check Your Result
For a $250,000 price, $50,000 down payment, 6% annual interest, and 30 years, the balance is $200,000 and principal plus interest is about $1,199.10 per month. The first month contains $1,000 interest and about $199.10 principal.
Assumptions and Limits
- The payment model assumes a constant rate and equal monthly payments, with no fees financed into the balance.
- A lender’s APR may include charges; it is not automatically the contractual interest rate used in this payment formula.
A Common Question
Why is the lender’s total payment higher?
The written payment may include tax or insurance escrow and other charges excluded from this principal-and-interest model. Compare the itemized amounts, not just the headline number.