Mortgage Calculator
Our free Mortgage Calculator helps you estimate your monthly home loan payments. Whether you're a first-time homebuyer, refinancing, or exploring different loan scenarios, this tool provides instant calculations to help you plan your home purchase and understand the true cost of homeownership.
Use this calculator when house hunting, comparing loan offers, or determining how much home you can afford. Enter your home price, down payment, interest rate, and loan term to see your monthly payment breakdown and total loan cost over time.
Calculate Your Mortgage Payment
Monthly Payment
$0.00
Loan Amount
$0.00
Total Interest
$0.00
Total Payment
$0.00
How This Mortgage Calculator Works
This calculator uses the standard mortgage payment formula to determine your monthly payment. Here's the formula explained simply:
In plain English:
- M = Your monthly mortgage payment
- P = Principal (home price minus down payment)
- r = Monthly interest rate (annual rate divided by 12)
- n = Total number of payments (loan term in years × 12)
The formula calculates a fixed monthly payment that covers both principal and interest, ensuring your loan is fully paid off by the end of the term. Early payments are mostly interest, while later payments are mostly principal.
Example Calculation
Let's calculate a mortgage with these numbers:
- Home Price: $300,000.00
- Down Payment: $60,000.00 (20%)
- Loan Amount: $240,000.00
- Interest Rate: 6.5% per year
- Loan Term: 30 years
Step-by-step calculation:
- Calculate the monthly interest rate: 6.5% ÷ 12 = 0.5417% (or 0.005417)
- Calculate total number of payments: 30 years × 12 months = 360 payments
- Apply the formula: $240,000.00 × [0.005417(1.005417)360] / [(1.005417)360 - 1]
- Result: $1,516.93 per month
Summary:
- Monthly Payment: $1,516.93
- Total of 360 Payments: $546,094.80
- Total Interest Paid: $306,094.80
Why Use This Calculator
Key Benefits:
- Plan your home buying budget with accurate monthly payment estimates
- Compare different loan scenarios side-by-side
- Understand the true cost of your mortgage including total interest
- See how increasing your down payment reduces your monthly payments
- Evaluate whether a 15-year or 30-year term is right for you
Common Mistakes This Calculator Helps You Avoid:
- Underestimating total interest costs over the life of the loan
- Not accounting for the impact of different down payment amounts
- Focusing only on monthly payment without considering total cost
- Ignoring how small interest rate differences add up over time
- Overextending your budget with a payment that's too high