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Mortgage Calculator

Estimate your monthly mortgage payment, total interest, and full amortization schedule based on home price, down payment, rate, and term.

About the Mortgage Calculator

A mortgage payment is the single biggest line item in most household budgets, and small changes in rate or down payment swing the monthly number by hundreds of dollars. This calculator turns a home price, down payment, interest rate, and loan term into a precise monthly payment, the total interest you will pay over the life of the loan, and a month-by-month amortization schedule so you can see exactly how your balance shrinks over time.

How It Works

The calculator subtracts your down payment from the home price to get the loan principal, then applies the standard fixed-rate amortization formula: it converts your annual rate to a monthly rate, spreads that rate across every month of the term, and solves for the level payment that pays off the loan exactly on schedule. Each month, part of your payment covers interest on the remaining balance and the rest reduces principal — early on interest dominates, and by the final years almost the whole payment goes to principal.

Payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.

Example

Scenario: A $400,000 home with a $80,000 (20%) down payment, a 6.5% rate, and a 30-year term.

Result: Loan amount of $320,000 produces a monthly payment of about $2,023, with roughly $408,000 in total interest paid over 30 years.

Assumptions & Limitations

  • Uses a fixed interest rate for the entire term — adjustable-rate mortgages will differ after the initial period.
  • Excludes property tax, homeowners insurance, PMI, and HOA dues, which are commonly bundled into a real monthly mortgage bill.
  • Real lenders round payments and may compound slightly differently; use this as a planning estimate, not a binding quote.
  • Does not model rate locks, points, or closing costs.

Frequently Asked Questions

How much down payment do I need to avoid PMI?
Most conventional lenders waive private mortgage insurance once your down payment reaches 20% of the home price, which is why 20% is the default comparison point in this calculator.
Why is most of my early payment interest?
Interest is charged on the outstanding balance, which is largest at the start of the loan, so a bigger share of each early payment goes to interest before principal paydown accelerates in later years.
Does a shorter term always cost less overall?
Yes — a 15-year term carries a higher monthly payment but dramatically less total interest than a 30-year term at the same rate, because the balance is repaid faster.

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