Mortgage Calculator
Estimate your monthly mortgage payment including principal and interest.
Mortgage Summary
Understanding Your Mortgage Payment
A mortgage is likely the largest financial commitment most people will ever make. Our mortgage calculator helps you estimate your monthly payment so you can plan your home purchase with confidence. By entering the home price, your planned down payment, the expected interest rate, and the loan term, you get an instant snapshot of what your monthly housing obligation will look like.
The monthly mortgage payment is calculated using the same amortization formula used for standard loans: M = P Γ [r(1+r)^n] / [(1+r)^n β 1]. Here, P represents the loan principal (home price minus your down payment), r is the monthly interest rate, and n is the number of payments over the loan term. A 30-year fixed-rate mortgage means 360 monthly payments, while a 15-year term means 180 payments.
How Down Payment Affects Your Mortgage
Your down payment has a significant impact on your monthly payment and total interest paid. A larger down payment reduces the loan principal, which means lower monthly payments and less interest over the life of the loan. In the United States, a down payment of 20% or more also allows you to avoid Private Mortgage Insurance (PMI), which can add $100β$300 or more to your monthly payment.
Keep in mind that this calculator estimates principal and interest only. Your actual monthly housing cost will also include property taxes, homeowner's insurance, HOA fees (if applicable), and PMI (if your down payment is less than 20%). Budget for these additional expenses to get a complete picture of your homeownership costs.