Free Online Calculators & Smart Tools for Money, Math, Health and Everyday Life
Mortgage Calculator
This mortgage calculator shows what a home loan really costs each month. Enter the home price, down payment, interest rate and loan term, and it breaks your payment into principal and interest, property taxes and homeowners insurance, plus the total interest you will pay over the life of the loan.
Results
Loan amount
—
Monthly principal & interest
—
Monthly taxes & insurance
—
Total monthly payment
—
Total interest over the loan
—
Total of all loan payments
—
How it works
The core of the calculation is the standard amortization formula: M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12) and n is the total number of monthly payments. This produces a fixed monthly principal-and-interest payment for a fixed-rate loan. Early payments are mostly interest, because interest is charged on a large remaining balance; later payments are mostly principal as the balance falls. Property taxes and homeowners insurance are not part of the loan itself, but most lenders collect them monthly through escrow, so this calculator divides your yearly tax and insurance estimates by 12 and adds them to show a realistic all-in monthly cost. A larger down payment reduces the loan amount and every downstream cost. A shorter term raises the monthly payment but cuts total interest dramatically, often by six figures on a typical loan. Figures here are estimates for planning: your lender quote will also reflect credit score, loan type, PMI if your down payment is under 20 percent, and local tax rates.
Frequently asked questions
What is included in the monthly payment?
The total shown combines principal and interest on the loan, plus 1/12 of your yearly property tax and homeowners insurance estimates, which most lenders collect through escrow.
How much difference does a 15-year term make?
A 15-year loan has a higher monthly payment but a much lower interest rate in most markets and far less total interest, often saving over $100,000 compared with a 30-year term on the same loan.
Does this calculator include PMI?
No. If your down payment is below 20 percent of the home price, your lender will usually add private mortgage insurance (PMI), which increases the monthly cost until you reach about 20 percent equity.
Why is so much of my first payment interest?
Interest is calculated on the outstanding balance each month. The balance is highest at the start, so interest takes the largest share early on and shrinks as you pay the loan down.