🏠
FREE CALCULATOR

Mortgage Calculator

Free mortgage calculator: monthly payment, total interest and a full amortization schedule for any amount, rate and term. Instant results, no sign-up.

Advertisement
🏠Mortgage Calculator

How to Calculate Your Monthly Mortgage Payment

Your monthly mortgage payment is calculated using this formula: M = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of payments (years × 12).

Example: A $300,000 loan at 6.5% for 30 years → monthly rate = 0.065/12 = 0.005417, n = 360 payments → monthly payment = $1,896. Total paid = $682,560. Total interest = $382,560 — more than the original loan.

The difference between a 15-year and 30-year mortgage is significant. A 30-year spreads payments but costs far more in interest. A 15-year mortgage typically has a lower interest rate and you build equity faster, but the monthly payment is about 50% higher.

What Affects Your Mortgage Payment?

Frequently Asked Questions

What is a good mortgage interest rate?+
Mortgage rates move with the wider market, so compare live offers on the day you apply rather than against a fixed figure. What you are quoted depends on your credit score, size of down payment, loan type and term, and the individual lender — a credit score of 740 or above typically earns the best rate available at the time. Compare offers on APR rather than the headline rate, and collect quotes from several lenders within a short window so the comparison is fair.
How much house can I afford?+
A common guideline: your total housing payment (PITI) should not exceed 28% of gross monthly income, and total debt payments should not exceed 36–43%. With $6,000/month gross income, maximum PITI is roughly $1,680–$2,580.
What is PMI and when can I remove it?+
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount annually. You can request PMI removal once you reach 20% equity (80% loan-to-value ratio).
Should I choose a 15-year or 30-year mortgage?+
A 30-year gives lower monthly payments and more cash flow flexibility. A 15-year saves enormous amounts in interest (often $150,000+) and builds equity faster, but requires a higher monthly commitment. Choose 15-year if you can comfortably afford the payment.

All Calculators

%
Percentage Calculator
⚖️
BMI Calculator
💰
Savings Calculator
Advertisement

How Mortgage Payments Are Calculated

Fixed-rate mortgage payments follow the amortization formula M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r the monthly interest rate and n the number of payments. Early payments are mostly interest; the principal share grows over time.

Worked example

Borrowing $300,000 for 30 years at 6.5% gives r = 0.065/12 and n = 360, producing a payment of about $1,896 per month excluding taxes and insurance. Over the full term you would pay roughly $383,000 in interest — more than the original loan.

Frequently asked questions

How much does the term matter? The same loan over 15 years costs about $2,613 monthly but only ~$170,000 in total interest — less than half.

What is PITI? Lenders quote Principal, Interest, Taxes and Insurance together; budget for all four, plus HOA fees where applicable.

Do extra payments help? Yes — extra principal payments early in the loan shorten the term dramatically because they avoid decades of compounding interest.

Sources & methodology

The formulas and figures used by this calculator come from these published sources. Where a figure changes from year to year, the year it applies to is stated on the page.

Results are estimates for planning, not financial advice. Tax rules and rates vary by country and by personal circumstances.