Mortgage Calculator — Calculate Monthly Home Loan Payments
Buying a home is likely the biggest financial decision you'll ever make. Our Mortgage Calculator helps you understand exactly what your monthly payments will be, how much interest you'll pay over the life of the loan, and how different loan terms and interest rates affect your budget. Whether you're a first-time homebuyer or refinancing an existing mortgage, this tool gives you the numbers you need to make informed decisions.
Simply enter the home price, down payment amount, loan term, and interest rate to get an instant breakdown of your mortgage costs. The visual bar chart shows you the proportion of principal versus interest, helping you see where your money goes.
The Mortgage Formula
How to Use the Mortgage Calculator
- Enter the home priceType the total purchase price of the property you.re considering.
- Input your down paymentEnter how much you.re putting down upfront. A larger down payment reduces your monthly payment and may eliminate PMI (Private Mortgage Insurance).
- Select loan termChoose from 30, 20, 15, or 10 years. Shorter terms mean higher monthly payments but significantly less interest paid overall.
- Enter interest rateInput the current mortgage rate offered by your lender. Rates vary based on credit score, loan type, and market conditions.
- Click CalculateSee your monthly payment, total interest, and a visual breakdown of costs.
Frequently Asked Questions
A general rule is that your total housing costs (mortgage, taxes, insurance) should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. Use this calculator to test different home prices and see what fits your budget.
A 15-year mortgage saves you significantly on interest but has higher monthly payments. A 30-year mortgage offers lower monthly payments and more flexibility. Choose based on your cash flow, financial goals, and whether you prioritize paying off debt faster or having lower monthly obligations.
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's value. It protects the lender if you default. Once you reach 20% equity (through payments or appreciation), you can request PMI removal. It's automatically terminated at 22% equity.
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