How the calculation works
Monthly payment = P * r(1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly rate, and n is total payments.
Finance calculators
Mortgage Calculator
Calculate monthly mortgage payments and total interest.
Complete guide
How to use Mortgage Calculator
The Mortgage Calculator uses the standard amortization formula to calculate fixed monthly payments based on loan amount, annual interest rate, and loan term. It shows monthly payment, total amount paid over the life of the loan, and total interest paid.
The loan amount is home price minus down payment. A 20% down payment is typically required to avoid private mortgage insurance (PMI).
What is included?
This calculator covers principal and interest only. Property taxes, homeowners insurance, and HOA fees are not included in the result.
Impact of the interest rate
A 1% difference in rate on a $300,000 30-year loan changes the monthly payment by roughly $170 and total interest by over $60,000.
Answers
Mortgage Calculator FAQs
How is monthly mortgage payment calculated?
Payment = Principal * monthly_rate * (1+monthly_rate)^months / ((1+monthly_rate)^months - 1).
What is a good mortgage interest rate?
Rates vary by market conditions. Check current rates from your lender or a rate comparison site for today's figures.
Does this include taxes and insurance?
No. This calculator covers principal and interest only. Add your property tax and insurance estimates separately.
What is a down payment?
The upfront portion of the home price you pay in cash. The remaining balance is the mortgage loan amount.
How much house can I afford?
A common guideline is that your monthly mortgage payment should be no more than 28% of your gross monthly income.
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Calculation method and limitations
Formula or method
P = home price minus down payment; r = annual rate / 100 / 12; n = years x 12. Monthly principal and interest = P x r / (1 - (1 + r)^(-n)). At 0% interest, payment = P / n. Annual taxes and insurance are divided by 12; PMI and HOA are monthly inputs. Extra principal payments shorten the amortization schedule.
Worked example
A $300,000 home with $60,000 down, 6.5% annual interest and 30 years gives a $240,000 loan and $1,516.96 monthly principal and interest. Adding $2,400 yearly property tax and $1,200 yearly insurance gives $1,816.96 monthly housing costs before PMI and HOA.
Assumptions and limitations
Expand optional assumptions to include taxes, insurance, PMI, HOA and extra payments. Costs and rate remain constant; PMI cancellation is not automatic. Closing costs are excluded. This is an estimate, not APR or lender advice.
Important: For educational planning only. Rates, tax rules, fees, and eligibility vary; confirm important decisions with a qualified professional.
Editorial note: Review the input definitions, units and assumptions before relying on results. Source: Consumer Financial Protection Bureau home-loan guidance.