Mortgage Payment Calculator
Calculate your monthly mortgage payment, total interest, and the true cost of your home over the life of the loan.
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Enter home details to calculate monthly payment.
Formula Explanation
The monthly payment uses the standard amortization formula for mortgages:
- M: Monthly payment
- P: Loan amount (home price - down payment)
- r: Monthly interest rate (annual rate / 12)
- n: Number of payments (years * 12)
Mortgage interest is compounded monthly. Each month, interest is calculated on your remaining loan balance and added to the principal. Your payment then reduces this amount, with early payments going mostly toward interest.
What Factors Affect Your Monthly Payment?
Four key variables determine your monthly mortgage payment: loan amount (home price minus down payment), interest rate, loan term, and whether the lender requires private mortgage insurance (PMI). A smaller loan, lower rate, or shorter term all reduce total interest paid — but a shorter term means higher monthly payments.
Your actual payment may also include property taxes and homeowner's insurance, collected in an escrow account by the lender. This calculator shows principal and interest only — add your estimated taxes and insurance to get the true all-in monthly cost.
15-Year vs. 30-Year Mortgage
| 15-Year | 30-Year | |
|---|---|---|
| Monthly payment | Higher | Lower |
| Total interest paid | Much less | Much more |
| Interest rate | Typically lower | Typically higher |
| Best for | Minimizing interest cost | Maximizing cash flow |
Frequently Asked Questions
How much down payment do I need?
Conventional loans typically require 3–20% down. Putting less than 20% down usually triggers private mortgage insurance (PMI), adding $50–200/month to your payment. FHA loans require as little as 3.5% down but have their own mortgage insurance premiums. VA loans (for veterans) and USDA loans (for rural areas) may require no down payment.
What is the maximum mortgage I can afford?
A common rule of thumb is the 28/36 rule: your monthly housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income, and your total debt payments (including car loans, student loans, credit cards) should not exceed 36%. Use the Mortgage Affordability Calculator to find your maximum purchase price.
Does paying extra each month make a big difference?
Yes — significantly. Even small extra principal payments compound over time because they reduce the balance on which future interest is charged. Adding $200/month to a 30-year $300,000 mortgage at 7.5% can cut more than 5 years off the loan and save over $60,000 in interest.