Mortgage Loan Calculator
Easily determine your fixed monthly mortgage payments. See exactly how much goes to principal vs interest — and the true total cost of your loan over its full life.
*Shows principal & interest only. Does not include property tax, insurance, or PMI.
Know your net pay before committing?
Salary & Tax Calculator →Everything About Mortgage Payments
The formula, key concepts, and expert tips to help you make the most informed home-buying decision.
📐 The Formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ−1]
P = loan principal · r = monthly rate (annual ÷ 12) · n = total payments (years × 12)
🏗️ How to Use It
- Enter the home purchase price
- Set your down payment ($ or %)
- Choose your loan term (15 or 30 yr)
- Enter the rate your lender quoted
- Compare monthly cost vs total cost
💡 Expert Tips
- 20% down = no PMI (saves $100–$300/mo)
- 1 extra payment/year = ~7 years shorter
- 740+ credit score → best rates
- Shop ≥3 lenders to compare APRs
Frequently Asked Questions
What is a fixed-rate mortgage?
A fixed-rate mortgage locks your interest rate for the entire loan term. Your monthly principal and interest payment never changes — great for long-term budgeting. Fixed rates are typically higher than adjustable-rate mortgages (ARMs) but offer complete predictability.
How much down payment do I need?
Conventional loans require 20% down to avoid PMI. FHA loans accept 3.5% down (580+ credit score). Some first-time buyer programs allow 3% down. A higher down payment means a smaller loan, lower monthly payments, and more equity from day one.
What costs are NOT shown in this calculator?
This calculator shows principal and interest only. Your real monthly cost also includes: Property taxes (0.5–2.5% of home value/year), Homeowner's insurance (~$100–200/month), PMI if down payment is under 20% (~0.5–1.5% of loan/year), and possible HOA fees.
15-year vs 30-year mortgage — which is better?
15-year: Higher monthly payment, far less total interest, faster equity. Often comes with a lower interest rate. 30-year: Lower monthly payment, more cash flexibility each month, but you pay 2–3× more total interest. Run both in the calculator to compare your specific numbers.
How can I pay off my mortgage faster?
Make one extra payment per year (applies entirely to principal) to shave 4–8 years off a 30-year loan. You can also: round up your monthly payment, make bi-weekly half-payments (26 payments/year = 13 full payments), or apply tax refunds/bonuses directly to principal.