Part of the Finance collection — 4 tools available
Mortgage Calculator — Monthly Payment & Amortization
Calculate your monthly mortgage payment with taxes and insurance. See total interest cost and amortization for any home loan amount, rate, and term.
About This Calculator
Your mortgage is likely the largest financial commitment you'll ever make, and even small differences in interest rate or loan term dramatically affect the total cost. On a $300,000 home loan, choosing a 30-year term at 7% costs over $418,000 in interest — more than the house itself. A 15-year term at 6.5% cuts total interest to about $170,000, saving nearly $250,000 but raising the monthly payment by roughly $700. Our mortgage calculator breaks down monthly payments, total interest, and the amortization schedule so you can make an informed decision.
The Formula Behind This Calculator
Monthly = P * [r(1+r)^n] / [(1+r)^n - 1] P = Loan, r = Monthly rate, n = Months Total interest = (Monthly * n) - P.
Understanding the math helps you verify results and make better decisions for your project.
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How to Use
- 1Enter the home purchase price.
- 2Enter your down payment amount.
- 3Enter the mortgage interest rate (check current rates online).
- 4Choose loan term (30 years is most common; 15 saves interest).
- 5Enter annual property tax (estimate ~1% of home value).
- 6Enter annual homeowners insurance (~$1,000-2,000 typical).
- 7Click Calculate.
When to Use
- →Estimating your true monthly housing cost before making an offer on a home
- →Comparing monthly payments between a 15-year and 30-year mortgage for the same home price
- →Determining how much house you can afford based on your monthly budget ceiling
Tips
- ✓Don't forget property tax and insurance — they can add $300-500/month on top of principal and interest
- ✓A 15-year mortgage saves tens of thousands in interest but increases monthly payments by 40-50%
- ✓Making just one extra mortgage payment per year can shave 4-6 years off a 30-year loan
FAQ
How much house can I afford?
Financial advisors recommend spending no more than 28% of gross monthly income on housing. Total debt payments should stay under 36% of gross income.
15-year vs 30-year mortgage?
15-year has higher monthly payments but saves tens of thousands in interest. 30-year gives lower payments and more financial flexibility. Choose based on your budget.
What is PMI?
Private Mortgage Insurance is required when your down payment is under 20%. It typically costs 0.5-1.5% of the loan amount annually, added to your monthly payment.
Should I pay extra on my mortgage?
Even small extra payments save significant interest. An extra $100/month on a $300k mortgage can save $40,000+ in interest and pay off years early.
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