Mortgage Calculator – Estimate Your Monthly Payment
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What Is a Mortgage Calculator?
A mortgage calculator estimates your monthly home loan payment based on the home price, your down payment, the interest rate, and the loan term. It helps you understand what you'd actually pay each month before you commit to a home purchase.
Formula Used
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Where M is the monthly payment, 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 (loan term in years × 12).
How to Use This Calculator
Enter the home price, your planned down payment, the interest rate offered by your lender, and the loan term in years. Click "Calculate Payment" to see your estimated monthly principal and interest payment, along with total interest paid over the life of the loan.
What This Calculator Doesn't Include
This estimate covers principal and interest only. Your actual monthly payment may also include property taxes, homeowners insurance, and possibly PMI (private mortgage insurance) if your down payment is under 20%. Ask your lender for a full breakdown before finalizing your budget.
Frequently Asked Questions
How much down payment do I need?
Conventional loans often require as little as 3-5% down, though 20% avoids private mortgage insurance (PMI). The right amount depends on your loan type and financial situation.
Does a lower interest rate always mean lower payments?
Generally yes, but the loan term matters too — a 30-year loan at a slightly higher rate can still have lower monthly payments than a 15-year loan at a lower rate, though you'll pay more interest overall.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but significantly less total interest. A 30-year loan offers lower monthly payments but costs more over time. It depends on your monthly budget versus long-term savings goals.
What's included in "total cost" on this calculator?
Total cost here means principal plus interest over the full loan term — it does not include taxes, insurance, or closing costs.