Calculate your monthly mortgage payment, total interest, and view a complete amortization schedule. Make informed decisions about your home purchase with our accurate, easy-to-use mortgage calculator.
The total purchase price of the home
Recommended: 20% to avoid PMI
Annual interest rate from your lender
See how your payments break down over the life of the loan
| Year | Beginning Balance | Annual Payment | Principal Paid | Interest Paid | Ending Balance |
|---|
A mortgage calculator helps you understand the true cost of buying a home by breaking down your potential monthly payments and showing how much you'll pay in interest over the life of the loan. Understanding these numbers is crucial for making an informed home-buying decision.
Your monthly mortgage payment is calculated using a standard amortization formula that considers your loan amount, interest rate, and loan term:
Where:
Your total monthly housing payment typically consists of four components, often called PITI:
If your down payment is less than 20%, you'll likely need Private Mortgage Insurance (PMI), which can add $100-$300+ per month to your payment. PMI can be removed once you reach 20% equity in your home.
Amortization is the process of paying off your loan over time through regular payments. Each payment includes both principal and interest, but the ratio changes over the life of the loan:
This is why making extra principal payments early in your loan can save significant money on interest over time.
One of the biggest decisions when getting a mortgage is choosing between a 15-year and 30-year term. Here's a detailed comparison based on a $300,000 loan at 6.5% interest:
| Factor | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly Payment | $2,613 | $1,896 |
| Total Interest Paid | $170,388 | $382,633 |
| Total Cost | $470,388 | $682,633 |
| Interest Savings | $212,245 saved | Baseline |
| Typical Rate | Usually 0.25-0.5% lower | Standard rate |
Get the flexibility of a 30-year mortgage but make extra principal payments when you can. This gives you the best of both worlds: lower required payments for tough months, but the ability to pay off your loan faster when finances allow.
Your down payment significantly impacts your monthly payment, interest rate, and whether you need PMI. Here's what you need to know about different down payment scenarios:
| Loan Type | Minimum Down Payment | PMI Required? | Best For |
|---|---|---|---|
| Conventional | 3-5% | Yes, until 20% equity | Good credit borrowers |
| FHA | 3.5% | Yes (MIP for life with <10% down) | First-time buyers, lower credit |
| VA | 0% | No | Military members & veterans |
| USDA | 0% | No (but has guarantee fee) | Rural area buyers |
| Jumbo | 10-20% | Varies | High-value properties |
While not required, putting 20% down offers several advantages:
Even a small difference in your interest rate can save tens of thousands of dollars over the life of your loan. Here are proven strategies to secure the best possible rate:
Your credit score is the biggest factor in determining your rate. Here's how scores typically affect rates:
Get quotes from at least 3-5 lenders. Rates can vary by 0.5% or more between lenders. This could mean:
Mortgage points (or "discount points") let you pay upfront to lower your rate. One point = 1% of loan amount = typically 0.25% lower rate. This makes sense if you'll stay in the home long enough to break even.
15-year mortgages typically have rates 0.25-0.5% lower than 30-year mortgages.
Mortgage rates fluctuate based on economic conditions. While you can't perfectly time the market, being flexible on timing can help.
Once you find a good rate, lock it in! Rate locks typically last 30-60 days. If rates drop significantly during your lock period, ask about a "float-down" option.
Pre-approval shows sellers you're serious and helps you understand your true budget before house hunting.
A lower payment over 30 years costs more than a higher payment over 15 years. Look at total cost.
Budget 2-5% of the home price for closing costs ($7,000-$17,500 on a $350,000 home).
Don't buy a car, furniture, or make large credit card purchases until after you close.
Lenders want stable employment. Wait until after closing to change jobs if possible.
Even 0.25% lower rate saves thousands. Get at least 3-5 quotes.
Property taxes, insurance, HOA fees, maintenance, and utilities add significantly to housing costs.
Keep 3-6 months of expenses saved. Unexpected repairs and costs will come up.
Understand prepayment penalties, rate adjustment terms (for ARMs), and all loan conditions.
Just because you qualify for a certain amount doesn't mean you should spend it all.
This reference table shows the estimated monthly principal & interest payment for 30-year fixed mortgages at various loan amounts and interest rates (2026 averages):
| Loan Amount | 5.5% APR | 6.5% APR | 7.0% APR | 7.5% APR | Total paid at 7% |
|---|---|---|---|---|---|
| $150,000 | $852 | $948 | $998 | $1,049 | $359,280 |
| $250,000 | $1,419 | $1,580 | $1,663 | $1,748 | $598,680 |
| $350,000 | $1,987 | $2,212 | $2,328 | $2,447 | $838,080 |
| $500,000 | $2,839 | $3,160 | $3,327 | $3,496 | $1,197,720 |
| $750,000 | $4,258 | $4,740 | $4,990 | $5,245 | $1,796,400 |
See how loan size, rate and term change your monthly mortgage payment with these worked examples.
You buy a $300,000 home with 20% down ($60,000), financing $240,000 over 30 years at a 6.5% fixed rate.
Result: Monthly principal & interest ≈ $1,517. Over 30 years you repay about $546,107 — roughly $306,107 in interest.
Same $240,000 loan, but on a 15-year term at a slightly lower 6.0% rate.
Result: Monthly payment jumps to ≈ $2,025, but total interest drops to about $124,546 — saving over $181,561 versus the 30-year loan.
Financing $450,000 on a larger home at a 7.0% rate over 30 years.
Result: Monthly principal & interest ≈ $2,994. Add property tax and insurance to estimate your full PITI payment.
Using the 28% rule, a $300,000 loan at 6.5% (≈$1,896/month for principal & interest, plus taxes and insurance) typically needs a gross income of roughly $90,000–$100,000 a year, depending on your other debts.
Yes. A larger down payment reduces the loan amount and monthly payment, and putting down 20% or more also lets you avoid private mortgage insurance (PMI), saving even more each month.
A full payment (PITI) includes Principal, Interest, property Taxes and homeowners Insurance — and PMI if your down payment is under 20%. Our calculator shows principal and interest; add taxes and insurance for the total.
Yes. Extra principal payments, biweekly payments, or refinancing to a shorter term can cut years of interest. Even one extra payment a year on a 30-year loan can shorten it by 4–5 years.
Quick unit conversions related to this calculator: