Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and total payment amount. Get instant, accurate results for home loans of any size.
About This Mortgage Calculator
Our free mortgage calculator helps you estimate your monthly mortgage payment based on the loan amount, interest rate, and loan term. This tool is essential for anyone planning to buy a home or refinance their existing mortgage. For comprehensive financial planning, consider using our personal loan calculator for other borrowing needs or our retirement calculator to plan your long-term financial goals.
The calculator provides a detailed breakdown showing your monthly payment (principal and interest), total payment over the life of the loan, and total interest paid. Understanding these numbers helps you make informed decisions about home financing. If you're also considering a car purchase, our car loan calculator can help you compare financing options.
How to Use the Mortgage Calculator
- Enter the Loan Amount: This is the total amount you plan to borrow. Typically, this is the home price minus your down payment.
- Enter the Interest Rate: Input the annual interest rate offered by your lender. Even small differences in interest rates can significantly impact your monthly payment.
- Enter the Loan Term: Choose how many years you'll take to repay the loan. Common terms are 15 or 30 years.
- Click Calculate: Get instant results showing your monthly payment and total costs.
Understanding Your Results
Monthly Payment: This is the amount you'll pay each month for principal and interest only. Remember that your actual mortgage payment may also include property taxes, homeowners insurance, and PMI.
Total Payment: The sum of all monthly payments over the entire loan term. This shows the total amount you'll pay back to the lender.
Total Interest: The total amount of interest you'll pay over the life of the loan. This is the cost of borrowing money. To better understand how interest compounds over time, try our compound interest calculator or explore investment opportunities with our investment calculator.
Mortgage Tips and Strategies
Ways to Lower Your Monthly Payment
- Increase Your Down Payment: A larger down payment reduces the loan amount and can help you avoid PMI.
- Shop for Better Rates: Even a 0.25% difference in interest rate can save thousands over the loan term.
- Extend the Loan Term: A 30-year mortgage has lower monthly payments than a 15-year, though you'll pay more interest overall.
- Improve Your Credit Score: Better credit typically qualifies you for lower interest rates.
15-Year vs 30-Year Mortgage
30-Year Mortgage: Lower monthly payments, more flexibility in your budget, but significantly more interest paid over time. Ideal if you prefer lower payments and plan to invest the difference.
15-Year Mortgage: Higher monthly payments but much lower total interest paid. You'll build equity faster and own your home sooner. Best if you can afford the higher payment and want to minimize interest costs.
Additional Costs to Consider
- Property Taxes: Typically 1-2% of home value annually, paid monthly with your mortgage.
- Homeowners Insurance: Required by lenders to protect against damage or loss.
- PMI (Private Mortgage Insurance): Required if your down payment is less than 20%. Usually 0.5-1% of loan amount annually.
- HOA Fees: If applicable, homeowners association fees for maintenance and amenities.
- Maintenance: Budget 1-2% of home value annually for repairs and upkeep.