Free Mortgage Calculator

Estimate your monthly mortgage payment, total interest costs, and amortization breakdown. Compare different scenarios to find the best home loan for your budget.

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Mortgage Payment Calculator

Enter your home purchase details below to calculate your estimated monthly payment, total interest paid, and total cost of the mortgage.

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Estimated Monthly Payment
Loan Amount
Total Interest Paid
Total Cost of Loan
Principal Interest

💡 Mortgage Tips

  • Put 20% down to avoid paying private mortgage insurance (PMI), which can add $100–$300/month to your costs.
  • Even a 0.5% lower rate on a 30-year mortgage saves tens of thousands over the life of the loan.
  • Consider a 15-year term if you can afford higher payments — you'll pay dramatically less in total interest.
  • Your mortgage payment is just part of the picture — budget for property taxes, insurance, and maintenance too.
  • Get pre-approved before house shopping to know your real budget and strengthen your offers.

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How to Calculate Your Mortgage Payment

Your monthly mortgage payment depends on four key factors: the home's purchase price, your down payment, the interest rate offered by your lender, and the length of your loan term. This calculator uses the standard amortization formula to give you an accurate estimate of what you'll owe each month.

The calculation works by spreading both the principal (the amount you borrowed) and the interest charges across every month of your loan term. In the early years, most of your payment goes toward interest. Over time, the balance shifts — and by the final years, nearly all of your payment reduces the principal. The amortization chart above illustrates this shift visually.

Understanding Your Results

The monthly payment figure is your principal and interest payment only. In practice, most homeowners also pay property taxes and homeowner's insurance through an escrow account, which adds to the total amount due each month. A common rule of thumb is that taxes and insurance add 20–40% on top of the principal and interest payment.

The total interest paid shows how much you'll pay the bank beyond the original loan amount. On a typical 30-year mortgage, you may pay nearly as much in interest as the original loan itself — which is why shorter terms and lower rates save so much money.

15-Year vs. 30-Year Mortgage

A 30-year mortgage has lower monthly payments, making it easier to qualify and leaving more room in your monthly budget. However, you'll pay significantly more in total interest. A 15-year mortgage has higher monthly payments but a much lower total cost. For example, a $280,000 loan at 6.5% costs about $357,000 in interest over 30 years — but only about $157,000 in interest over 15 years. That's a savings of roughly $200,000.

How Much House Can You Afford?

Most financial advisors recommend that your total housing costs (mortgage payment, taxes, insurance, and any HOA fees) should not exceed 28% of your gross monthly income. This is known as the "28% rule." Some lenders may approve you for more, but staying within this range helps ensure you can comfortably afford your home while meeting other financial obligations.

Frequently Asked Questions

What's included in a monthly mortgage payment?
A typical mortgage payment includes four components, often called PITI: Principal (paying down the loan balance), Interest (the cost of borrowing), Taxes (property taxes collected in escrow), and Insurance (homeowner's insurance, also escrowed). This calculator shows the principal and interest portion. Taxes and insurance vary by location and policy.
What is PMI and how do I avoid it?
Private Mortgage Insurance (PMI) is an additional monthly charge lenders require when your down payment is less than 20% of the home price. It protects the lender if you default. PMI typically costs 0.5–1% of the loan amount per year. Once your equity reaches 20%, you can usually request PMI removal.
Should I choose a fixed or adjustable rate?
A fixed-rate mortgage keeps the same interest rate for the entire term, providing predictable payments. An adjustable-rate mortgage (ARM) often starts with a lower rate that can change after an initial period (e.g., 5 or 7 years). Fixed rates are generally recommended if you plan to stay in the home long-term. ARMs may save money if you plan to move or refinance within the initial fixed period.
How does my credit score affect my mortgage rate?
Your credit score is one of the biggest factors in the interest rate you'll receive. Borrowers with excellent credit (740+) typically qualify for the lowest rates. Each tier below that may add 0.25–0.5% or more to your rate. On a $300,000 loan, even a 0.5% rate difference can cost over $30,000 in additional interest over 30 years.
What are closing costs?
Closing costs are fees charged when you finalize your mortgage, typically ranging from 2–5% of the loan amount. They include appraisal fees, title insurance, attorney fees, origination fees, and prepaid items like taxes and insurance. On a $300,000 loan, expect to pay $6,000–$15,000 in closing costs in addition to your down payment.
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