Mortgage Calculator

Calculate your monthly mortgage payment and total loan costs.

Mortgage Details

Home Price$500,000

$50,000$5,000,000

Down Payment$100,000

Down Payment: 20.0%

Interest Rate (Annual)6.5%

0.1%15%

Loan Term (Years)30 years

5 years50 years

Monthly Payment

Loan Amount:$400,000

Total Interest:$0

Total Payment:$0

About This Calculator

The Mortgage Calculator helps you determine monthly mortgage payments for your home purchase. Simply enter the home price, down payment, interest rate, and loan term to see your monthly payment, total interest paid, and complete amortization schedule.

This calculator uses the standard mortgage formula to provide accurate payment estimates, helping you plan your home purchase budget and understand the total cost of homeownership.

Formula & Calculation Method

Mortgage Payment Formula: Uses the standard amortization formula.

Loan Amount = Home Price - Down Payment
Monthly Rate = Annual Rate ÷ 12 ÷ 100
Monthly Payment = [P × R × (1+R)^N] / [(1+R)^N - 1]
Where: P = Loan Amount, R = Monthly Rate, N = Loan Term in Months

This is the standard formula used by lenders worldwide. It calculates fixed monthly payments that include both principal and interest components, with the interest portion decreasing over time.

How to Use This Calculator

Enter Home Price: Input the total purchase price of the home.
Enter Down Payment: Input the amount you plan to pay upfront (reduces loan amount).
Enter Interest Rate: Input the annual mortgage interest rate percentage.
Enter Loan Term: Select the loan duration in years (typically 15, 20, or 30 years).
View Results: See monthly payment, total interest, and total payment amount.
Analyze: Review the amortization chart to see payment breakdown over time.

Frequently Asked Questions

What is included in the monthly payment?

The calculated monthly payment includes principal and interest only. It does not include property taxes, homeowners insurance, PMI, or HOA fees, which may be required separately.

How does down payment affect the mortgage?

A larger down payment reduces your loan amount, which lowers your monthly payment and total interest paid. Typically, a 20% down payment eliminates the need for PMI (Private Mortgage Insurance).

What is the difference between 15-year and 30-year mortgages?

A 15-year mortgage has higher monthly payments but significantly less total interest paid. A 30-year mortgage has lower monthly payments but more total interest over the life of the loan.