Mortgage Calculator

Enter a home price, down payment, and interest rate to see your principal-and-interest payment and total interest over the life of the loan.


Enter Mortgage Details
$

Total cost of the house

$

Money you pay upfront

%

Yearly cost of your loan as a percentage

How long you have to pay back the loan

Mortgage Results

Monthly payment first, then the full loan cost.

Monthly Payment

$1,077.71

Principal and interest only

Total Payment
Principal and interest
$387,975.60
Total Interest
Cost of borrowing
$147,975.60
Loan-to-Value Ratio
Home value borrowed
80%
Monthly Interest Rate
APR divided by 12
0.292%
Number of Payments
Monthly payments
360.00
Principal
Amount you borrowed from the bank
$240,000.00

Payment Breakdown

Total paid: $387,975.60.

How the mortgage calculator works

This calculator uses the standard amortization formula to turn a home price, down payment, interest rate, and term into a monthly principal-and-interest payment. Amortization means every payment is split between interest (the cost of borrowing that month) and principal (actually paying down the loan). Early in a 30-year mortgage, most of each payment goes to interest; the split gradually flips as the balance shrinks.

The number people overlook is total interest over the life of the loan. On a $240,000 loan at 6.5% for 30 years, you pay roughly $306,000 in interest — more than the amount borrowed. Shortening to 15 years raises the monthly payment but cuts total interest by more than half, and even small rate differences move the total by tens of thousands. Try the comparison mode to see two scenarios side by side.

This calculator shows principal and interest only. Your real monthly housing cost will also include property taxes, homeowners insurance, PMI if your down payment is under 20%, and HOA dues if applicable — together these commonly add 25–40% on top of the P&I number, so budget around the full payment, not just this one.

Frequently asked questions

How is a monthly mortgage payment calculated?

With the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r the monthly interest rate, and n the number of monthly payments. The calculator does this for you and also totals the interest over the full term.

How much difference does the interest rate really make?

A lot. On a $240,000 30-year loan, the difference between 6.0% and 7.0% is about $158 per month — and roughly $57,000 over the life of the loan. This is why comparing offers from multiple lenders is worth the effort.

Should I choose a 15-year or 30-year mortgage?

A 30-year term has lower payments and more flexibility; a 15-year term has a higher payment but a lower rate and dramatically less total interest. A middle path: take the 30-year for safety and make extra principal payments when you can.

What costs are not included in this payment?

Property taxes, homeowners insurance, PMI (usually required below 20% down), and HOA fees. Lenders often collect taxes and insurance through an escrow account, so your actual monthly bill will be higher than the principal-and-interest figure shown here.

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