Mortgage Calculator

Calculate monthly mortgage payments, total interest, and amortization schedule for home loans.

Mortgage Calculator

A mortgage calculator estimates your monthly home loan payment based on the loan amount, interest rate, and loan term. Enter your details above to instantly see your monthly principal and interest payment, total interest paid, and a full amortization schedule — free, with no signup required.

Mortgage Payment Formula

This calculator uses the standard fixed-rate amortization formula:

M = P × [i(1 + i)n] / [(1 + i)n − 1]
VariableMeaning
MMonthly principal + interest payment
PLoan principal (home price minus down payment)
iMonthly interest rate (annual rate ÷ 12)
nTotal number of monthly payments (years × 12)

Example: $300,000 Loan at 6.5% — 15-Year vs 30-Year

Here's how loan term alone changes your payment and total interest on a $300,000 loan at a 6.5% fixed rate:

TermMonthly PaymentTotal PaidTotal Interest
15 years$2,613$470,412$170,412
30 years$1,897$682,812$382,812

The 15-year loan costs $716/month more but saves roughly $212,400 in total interest over the life of the loan.

Monthly Payment by Loan Amount (6.5%, 30-Year)

Loan AmountEst. Monthly P&I
$200,000$1,264
$300,000$1,897
$400,000$2,529
$500,000$3,161

Principal & interest only — excludes taxes, insurance, PMI, and HOA fees. Use the calculator above for your exact numbers.

PITI: The Full Cost of Your Monthly Payment

This calculator shows principal and interest (P&I) only. Lenders and homeowners typically also account for:

ComponentWhat It Covers
PrincipalRepayment of the amount borrowed
InterestThe cost of borrowing, paid to the lender
TaxesLocal property taxes, often collected via escrow
InsuranceHomeowners insurance, and PMI if your down payment is under 20%

How to Lower Your Mortgage Payment

  • Make a larger down payment — reduces your loan principal and can eliminate PMI at 20% equity.
  • Improve your credit score — a higher score typically qualifies you for a lower interest rate.
  • Choose a longer term — a 30-year term lowers your monthly payment compared to a 15-year term, at the cost of more total interest.
  • Shop multiple lenders — rates and fees vary; comparing offers can meaningfully change your total cost.
  • Refinance when rates drop — refinancing to a lower rate can reduce your payment, though closing costs should be weighed against the savings.

Frequently Asked Questions

Monthly mortgage payments use the standard amortization formula: M = P × [i(1+i)^n] / [(1+i)^n − 1], where P is the loan principal, i is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). This produces a fixed payment where the interest/principal split changes every month.
An amortization schedule is a month-by-month breakdown of your loan showing how much of each payment goes toward interest versus principal, and your remaining balance after each payment. Early payments are mostly interest; later payments are mostly principal, even though the total payment stays the same.
This calculator shows principal and interest (P&I) only. Your actual monthly housing cost — often called PITI — also includes Property taxes, homeowners Insurance, and (if applicable) PMI or HOA fees, which can add several hundred dollars per month depending on your location and down payment.
PITI stands for Principal, Interest, Taxes, and Insurance — the four components lenders typically combine to determine your total monthly housing payment and your debt-to-income ratio for mortgage approval.
Private Mortgage Insurance (PMI) is typically required on conventional loans when your down payment is less than 20% of the home's value. PMI usually costs 0.5–1.5% of the original loan amount per year and can be removed once you reach roughly 20% equity.
A 15-year mortgage has a higher monthly payment but a lower interest rate and dramatically less total interest paid over the loan's life. A 30-year mortgage has a lower, more manageable monthly payment but costs significantly more in total interest. The right choice depends on your monthly budget flexibility versus your priority on minimizing lifetime interest cost.
Extra payments applied directly to principal reduce the balance your interest is calculated on for every future month, which shortens your loan term and cuts total interest — even small, consistent extra payments (e.g., one extra payment per year) can shave several years off a 30-year mortgage.
A common guideline is the 28/36 rule: your monthly housing payment (PITI) shouldn't exceed 28% of your gross monthly income, and your total debt payments (including the mortgage) shouldn't exceed 36%. Lenders may allow higher ratios depending on your credit profile, but staying within these limits generally leaves more budget flexibility.
Mortgage rates are influenced by your credit score, down payment size, loan term, loan type (fixed vs. adjustable), debt-to-income ratio, and broader market conditions such as the Federal Reserve's benchmark rate. A higher credit score and larger down payment typically qualify you for a lower rate.
A fixed-rate mortgage keeps the same interest rate and payment for the entire loan term, offering predictability. An adjustable-rate mortgage (ARM) starts with a lower introductory rate for a set period, then adjusts periodically based on market rates — which can lower initial payments but adds long-term uncertainty.

This calculator uses the standard fixed-rate amortization formula used industry-wide by lenders. Results are estimates for planning purposes only, exclude taxes, insurance, PMI, and HOA fees unless your tool inputs them separately, and do not constitute a loan offer or financial advice — consult a licensed mortgage lender or financial advisor for a formal quote. Last reviewed: August 2026.