Mortgage Calculator
Calculate your monthly mortgage payments, total interest, and view amortization schedule
Your Monthly Payment
First Year Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1516.96 | $216.96 | $1300.00 | $239,783.04 |
| 2 | $1516.96 | $218.14 | $1298.82 | $239,564.9 |
| 3 | $1516.96 | $219.32 | $1297.64 | $239,345.58 |
| 4 | $1516.96 | $220.51 | $1296.46 | $239,125.07 |
| 5 | $1516.96 | $221.70 | $1295.26 | $238,903.37 |
| 6 | $1516.96 | $222.90 | $1294.06 | $238,680.46 |
| 7 | $1516.96 | $224.11 | $1292.85 | $238,456.35 |
| 8 | $1516.96 | $225.32 | $1291.64 | $238,231.03 |
| 9 | $1516.96 | $226.55 | $1290.42 | $238,004.48 |
| 10 | $1516.96 | $227.77 | $1289.19 | $237,776.71 |
| 11 | $1516.96 | $229.01 | $1287.96 | $237,547.71 |
| 12 | $1516.96 | $230.25 | $1286.72 | $237,317.46 |
About This Tool
Our mortgage calculator provides accurate monthly payment estimates for home loans, helping you plan your home purchase with confidence. Whether you're a first-time homebuyer or refinancing an existing mortgage, this free tool calculates your principal and interest payments, displays detailed amortization schedules, and shows total interest costs over the life of your loan.
What is a Mortgage Calculator?
A mortgage calculator is a financial planning tool that estimates your monthly home loan payments based on the loan amount, interest rate, and loan term. It uses the standard amortization formula to calculate how much of each payment goes toward principal versus interest. Understanding these calculations is essential when shopping for a home, as it helps you determine what price range fits your budget and how different loan terms affect your monthly obligations. Our calculator accounts for various down payment percentages and loan terms, giving you a complete picture of your potential mortgage costs.
Key Features
- Accurate Payment Calculation: Uses industry-standard formulas to calculate exact monthly principal and interest payments for any loan amount
- Amortization Schedule: View a detailed first-year breakdown showing how each payment is divided between principal and interest reduction
- Total Cost Analysis: See your total interest paid over the life of the loan to understand the true cost of borrowing
- Flexible Down Payment: Adjust down payment amounts to see how larger deposits reduce monthly payments and total interest
- Multiple Loan Terms: Compare 15, 20, and 30-year mortgages to find the best balance of payment affordability and interest savings
- Interest Rate Comparison: Easily modify interest rates to see how even small rate changes significantly impact your payments
- Instant Recalculation: All changes update immediately, allowing you to explore different scenarios quickly
Common Use Cases
Mortgage calculators serve multiple purposes throughout the home buying and ownership journey. From initial budgeting to refinancing decisions, understanding your mortgage payments is crucial for financial planning.
- First-Time Homebuyers: Determine affordable home prices and required down payments before starting your home search
- Refinancing Analysis: Compare your current mortgage payment with potential refinancing options to calculate savings
- Budget Planning: Understand how mortgage payments fit into your monthly budget alongside other expenses
- Down Payment Strategy: Calculate how saving for a larger down payment reduces monthly costs and eliminates PMI requirements
- Loan Term Comparison: Evaluate whether a 15-year mortgage with higher payments saves enough interest to justify the higher monthly cost
- Rate Shopping: Quantify the dollar impact of different lender interest rate offers to choose the best deal
How to Use
Using our mortgage calculator is simple and provides instant insights into your home financing options. Follow these steps to calculate your mortgage payments.
- Enter your target home price or the price of a specific property you're considering
- Input your planned down payment amount - typically 5-20% of the home price (20% avoids PMI)
- Select your preferred loan term from common options: 15, 20, or 30 years
- Enter the annual interest rate offered by your lender or use current market rates
- Review your monthly payment, total interest, and amortization schedule immediately
- Adjust any values to compare different scenarios and find your optimal mortgage structure
Understanding Your Mortgage Payment
Your monthly mortgage payment consists of principal and interest (P&I). The principal portion pays down your loan balance, while interest is the cost of borrowing. In the early years, most of your payment goes toward interest due to the higher outstanding balance. As you pay down the principal, the interest portion decreases and more goes toward principal, accelerating your equity buildup. This is called amortization. Additionally, most mortgage payments include property taxes and homeowners insurance (PITI), though our calculator focuses on the P&I portion to show pure loan costs.
Tips for Getting a Better Mortgage Rate
Securing a lower interest rate can save tens of thousands of dollars over your loan's lifetime. Improve your credit score to 740+ for the best rates, as lenders reward creditworthy borrowers with lower interest. Save for a 20% down payment to avoid PMI and qualify for better rates. Shop around and compare offers from at least 3-5 lenders, including banks, credit unions, and online lenders. Consider buying discount points to permanently lower your rate if you plan to stay in the home long-term. Get pre-approved before house hunting to strengthen your negotiating position and lock in rates when favorable.
15-Year vs 30-Year Mortgage
Choosing between a 15-year and 30-year mortgage involves balancing monthly affordability with long-term interest savings. A 15-year mortgage typically offers interest rates 0.5-0.75% lower than 30-year loans and saves massive amounts in total interest, often cutting interest costs by more than half. However, monthly payments are significantly higher, requiring strong income stability. A 30-year mortgage provides lower monthly payments, offering more budget flexibility and allowing you to invest excess cash elsewhere. Many homeowners choose 30-year mortgages but make extra principal payments when possible, combining flexibility with interest savings.