Mortgage Calculator
Enter a valid home price, down payment, interest rate, and loan term to calculate your mortgage.
This tool is part of these guided projects. Each project provides step-by-step instructions with checklists and all the tools you need in one place.
Decide rent vs buy, calculate mortgage affordability, plan your down payment, and organize the move.
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The standard amortization formula used by banks and lenders worldwide. P = principal, r = monthly rate (annual rate ÷ 12), n = total number of payments.
M = P[r(1+r)^n]/[(1+r)^n-1]Total interest is the difference between all payments made and the original principal borrowed.
Total Interest = (Monthly Payment × Number of Payments) - PrincipalEach payment splits between interest (current balance × monthly rate) and principal reduction. Early payments are mostly interest; later payments are mostly principal.
Updated: July 2026
$300,000 home, 20% down ($240,000 loan), 6.5% rate, 30 years — typical first-time purchase scenario.
→ Monthly payment: ~$1,517
Compare current 7% rate vs refinancing at 5.5% on remaining $200,000 balance to see potential savings.
→ Refinancing saves ~$200/month and thousands in total interest
Same $250,000 loan — see how a shorter term saves $100,000+ in interest despite higher monthly payments.
→ 15-year term saves $100,000+ in total interest
These can add $200–500/month on top of your mortgage payment. Always budget for PITI (Principal, Interest, Taxes, Insurance), not just P&I.
Total interest over the life of the loan matters more. A lower monthly payment over 30 years often costs significantly more in total interest than a 15-year loan.
Loans with less than 20% down require Private Mortgage Insurance (PMI), typically 0.5–1% of the loan amount annually until you reach 20% equity.
This mortgage calculator helps you estimate monthly payments, total interest, and the full cost of a home loan. Enter your home price, down payment, interest rate, and loan term to see a detailed breakdown including an amortization schedule.