Mortgage Payment Calculator
Loan Amount: -
Loan Term: - years
Interest Rate: -%
Total Cost: -
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■ Principal
■ Interest
■ Taxes & Insurance
| Date | Home Price | Down Payment | Monthly Payment | Interest Rate | Currency | Actions |
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Your Complete Guide to Mortgage Calculations
Understand every aspect of your mortgage payments with our comprehensive calculator guide
What is a Mortgage Calculator?
A mortgage calculator is your financial planning tool that helps you estimate your monthly home loan payments. It considers all the key factors that affect your mortgage, including the home price, down payment, interest rate, and loan term.
Think of it as your personal financial assistant that helps you answer questions like:
- How much house can I afford?
- What will my monthly payments be?
- How much interest will I pay over time?
- Should I make a larger down payment?
Try Our Mortgage Calculator
Get instant calculations for your dream home. Input your details and see your potential monthly payments in seconds!
Understanding Each Input Field
1. Home Price ($)
What it means:
The total purchase price of the home you want to buy.
Example:
A single-family home listed for $350,000
Impact on payments:
Higher home price = Higher monthly payments
2. Down Payment ($)
What it means:
The initial amount you pay upfront when purchasing the home.
Example:
A 20% down payment on a $350,000 home = $70,000
Why it matters:
Larger down payments reduce your loan amount, lower monthly payments, and may eliminate the need for Private Mortgage Insurance (PMI).
3. Loan Term (Years)
What it means:
How long you'll take to pay back the loan.
Common options:
- 30 years: Lower monthly payments, more total interest
- 15 years: Higher monthly payments, less total interest
- 10-20 years: Balance between payments and interest
Example comparison:
A $300,000 loan at 5% interest:
- 30 years: $1,610/month
- 15 years: $2,372/month
4. Interest Rate (%)
What it means:
The cost of borrowing money, expressed as a percentage of the loan amount.
Example:
A 5.5% interest rate means you pay $5.50 in interest for every $100 borrowed each year.
Factors affecting rate:
Credit score, loan term, market conditions, and loan type.
Impact:
A 1% difference in interest rate can change your monthly payment by $200+ on a $300,000 loan.
5. Property Tax ($/year)
What it means:
Annual taxes paid to your local government based on your home's value.
Example:
A $350,000 home in an area with 1% property tax = $3,500/year ($292/month)
Average rates:
Typically 0.5% to 2% of home value, varying by location.
6. Home Insurance ($/year)
What it means:
Annual cost to insure your home against damage or loss.
Example:
Average annual premium for a $350,000 home = $1,200-$1,800/year ($100-$150/month)
Coverage includes:
Structure damage, personal property, liability protection.
The Mortgage Formula Explained
M = P × [r(1+r)^n] ÷ [(1+r)^n – 1]
Where:
M = Monthly payment
P = Principal loan amount (Home Price - Down Payment)
r = Monthly interest rate (Annual rate ÷ 12)
n = Total number of payments (Loan term in years × 12)
Step-by-Step Calculation Example
Let's calculate a mortgage for a $350,000 home:
- Home Price: $350,000
- Down Payment (20%): $70,000
- Loan Amount (P): $350,000 - $70,000 = $280,000
- Interest Rate: 5.5% annually
- Monthly Rate (r): 5.5% ÷ 12 = 0.4583% (0.004583)
- Loan Term: 30 years (360 months)
- Number of Payments (n): 30 × 12 = 360
Plug into formula:
M = $280,000 × [0.004583(1+0.004583)^360] ÷ [(1+0.004583)^360 – 1]
Result: $1,589.36 per month (Principal & Interest only)
Key Features of Our Mortgage Calculator
45+ Currencies
Calculate in your local currency with real-time formatting for symbols and decimal places.
Auto-Save
Your inputs are automatically saved, so you never lose your calculations.
Visual Breakdown
See exactly how much goes to principal, interest, taxes, and insurance.
Export Results
Save calculations as PDF, HTML, or text files for sharing or record-keeping.
Understanding Your Results
Sample Calculation Results
For a $350,000 home with 20% down payment, 5.5% interest over 30 years:
- Monthly Payment (P&I): $1,589.36
- Total Monthly Cost: $1,981.36 (with taxes & insurance)
- Total Interest Paid: $292,169.60 over 30 years
- Loan Amount: $280,000
- Total Cost of Home: $713,169.60
Payment Allocation Explained
Your monthly payment consists of four main components:
Principal
The actual amount borrowed that goes toward paying down your loan balance.
First payment: $189.36
Last payment: $1,577.84
Interest
The cost of borrowing money from the lender.
First payment: $1,400.00
Last payment: $11.52
Property Tax
Local government taxes based on your home's value.
Monthly: Typically $200-$600
Home Insurance
Protection against damage, theft, and liability.
Monthly: Typically $100-$300
15 Frequently Asked Questions
PMI (Private Mortgage Insurance) is required if your down payment is less than 20% of the home price. It protects the lender if you default on the loan and typically costs 0.5% to 1% of your loan amount annually.
A 1% change in interest rate can change your monthly payment by about $60 for every $100,000 borrowed. For example, on a $300,000 loan, going from 4% to 5% increases your payment by about $180/month.
• 30-year: Lower payments, better cash flow, tax benefits, more flexibility
• 15-year: Pay off faster, less interest, build equity quicker, but higher payments
Most lenders recommend 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%.
• Interest Rate: Cost of borrowing the principal loan amount
• APR: Annual Percentage Rate includes interest + fees + other costs
Larger down payments: reduce monthly payments, eliminate PMI, improve loan terms, and reduce total interest paid.
Additional fees paid at closing, typically 2% to 5% of the home price, including appraisal, title insurance, and loan origination fees.
Yes! Extra payments go directly toward principal, reducing total interest and shortening your loan term. For example, an extra $100/month on a $300,000 loan can save $30,000+ in interest.
A table showing how each payment is split between principal and interest over the life of the loan. Our calculator generates this for you.
Taxes are based on your home's assessed value and local tax rates. They're typically paid monthly through your mortgage payment and held in escrow.
• Excellent (740+): Best rates
• Good (680-739): Good rates
• Fair (620-679): Higher rates
• Below 620: May need FHA loan
• Fixed Rate: Same payment for entire loan term
• Adjustable Rate: Rate changes periodically based on market conditions
Recalculate when: interest rates change, your income changes, you consider different loan terms, or your down payment amount changes.
Our calculator focuses on mortgage payments. Add HOA fees separately to your total monthly housing costs for accurate budgeting.
Our calculator uses standard mortgage formulas, making it highly accurate for fixed-rate loans. Actual loan offers may include additional fees or slight variations.
Mortgage Planning Tips
Set Realistic Goals
Aim for a monthly payment that's comfortable even if interest rates rise or your income decreases.
Save for More Than Down Payment
Remember to budget for closing costs (2-5% of home price) and moving expenses.
Consider Future Changes
Factor in potential changes: job changes, family growth, or home value appreciation.
Get Pre-Approved
Know exactly how much you can borrow before house hunting to strengthen your offers.