Mortgage Calculator
Use our mortgage calculator to estimate your monthly payment based on home price, down payment, loan term, and interest rate. Understand the true cost of your loan including total interest paid over the life of the mortgage.
Monthly P&I Payment
$2,128.97
What this calculator does
Use our mortgage calculator to estimate your monthly payment based on home price, down payment, loan term, and interest rate. Understand the true cost of your loan including total interest paid over the life of the mortgage.
How the calculation works
The monthly mortgage payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan principal (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). The total interest is found by multiplying the monthly P&I payment by the number of payments and subtracting the principal.
Examples
$400,000 Home — 20% Down, 30-Year Fixed
A typical first-time homebuyer scenario with a conventional 30-year mortgage.
$300,000 Home — 10% Down, 15-Year Fixed
A shorter loan term saves significant interest despite higher monthly payments.
Frequently asked questions
What is included in a mortgage payment?
A full mortgage payment typically includes Principal (paying down the loan), Interest (cost of borrowing), Property Taxes, and Homeowners Insurance — often abbreviated as PITI. Our calculator includes all four.
Does a higher down payment always make sense?
A larger down payment reduces your loan amount and monthly payment, and helps you avoid Private Mortgage Insurance (PMI) if you reach 20%. However, tying up cash in equity means less liquidity, so it's a tradeoff based on your financial situation.
What is the difference between 15-year and 30-year mortgages?
A 15-year mortgage has higher monthly payments but you pay far less total interest and build equity faster. A 30-year mortgage has lower monthly payments, making it more affordable month-to-month, but costs significantly more in total interest.
How does interest rate affect my payment?
Even a 0.5% difference in rate can change your monthly payment by hundreds of dollars on a large loan. On a $320,000 loan over 30 years, the difference between 6.5% and 7.0% is about $105/month and over $37,000 in total interest.