Mortgage Calculator
Estimate monthly mortgage payments from loan amount, interest rate, and term, with a payment breakdown.
About Mortgage Calculator
A mortgage calculator turns loan amount, interest rate, and term into the single number buyers care about: the monthly payment. Home buying involves so many competing estimates that a reliable payment figure is essential before comparing properties or talking to lenders.
The monthly payment comes from the standard amortization formula, which spreads principal and interest across the term. Early payments go mostly to interest, with the principal share growing as the balance falls, and the tool shows total interest over the life of the loan. Property tax and insurance can be added to estimate a fuller monthly housing cost. The result assumes a fixed rate and ignores one-time closing costs.
First-time buyers use it to see how much house they can afford, existing owners compare refinance scenarios, and real estate agents use it to give clients realistic payment expectations. Renters deciding between renting and buying also use it to put the two options on the same financial footing.
How to Use
- Enter the loan amount, annual rate, and term in years.
- Add property tax and insurance estimates if you like.
- Read your monthly payment and interest total.
Example
$300,000 at 6% for 30 years ≈ $1,799/month · Total interest ≈ $347,515
The monthly payment is computed with the standard amortization formula; most early payments go mostly to interest.
FAQ
What is included in the payment?
Principal and interest, with optional property tax and insurance added to estimate a full monthly housing cost.
How does the amortization work?
Each payment covers interest first, then principal. Over time the principal share grows as the balance shrinks.
Should I include PMI?
Yes if your down payment is under 20% — most lenders require private mortgage insurance, which this tool lets you add.
How does a larger down payment change my payment?
A bigger down payment shrinks the loan amount, so both the monthly payment and the total interest fall. It can also remove the need for PMI if it reaches 20%, cutting the monthly cost further.
Does the estimate include closing costs?
No. Closing costs, which cover lender fees, title, appraisal, and points, are typically 2-5% of the purchase price and are paid upfront, separate from the monthly payment the calculator estimates.