Mortgage Calculator
Calculate your monthly mortgage payments, total interest costs, and create an amortization schedule. Make informed decisions about your home purchase with our comprehensive mortgage calculator.
Monthly Payments
Calculate exact monthly principal and interest payments
Total Interest
See how much interest you'll pay over the loan term
Loan Comparison
Compare different loan terms and down payments
Understanding Mortgage Payments
Your mortgage payment consists of four main components, often called PITI:
Principal
The amount that goes toward paying down your loan balance. This increases over time.
Interest
The cost of borrowing money. This decreases over time as your balance shrinks.
Taxes
Property taxes collected by your lender and held in escrow to pay annually.
Insurance
Homeowners insurance and PMI (if down payment is less than 20%).
The Mortgage Formula
M = P[r(1+r)^n]/[(1+r)^n-1]
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate
n = Total number of payments
Mortgage Shopping Tips
Compare Interest Rates
Even a small difference in interest rates can save you tens of thousands over the life of your loan. A 0.5% rate difference on a $300,000 loan saves about $100/month and $36,000 over 30 years.
Consider Loan Terms
15-Year Mortgage
Higher payments, but significant interest savings
30-Year Mortgage
Lower payments, more interest paid over time
Down Payment Impact
- 20% down: Avoid PMI, better rates, lower monthly payments
- 10-19% down: PMI required, but still competitive rates
- 3-5% down: FHA/VA options available, higher monthly costs
Get Pre-Approved
Pre-approval gives you a clear budget and shows sellers you're a serious buyer. It can make the difference in competitive markets.
15-Year vs 30-Year Mortgage Comparison
30-Year Mortgage
Loan Amount: $300,000
Interest Rate: 6.5%
Monthly Payment: $1,896
Total Interest: $382,633
Total Paid: $682,633
Benefits: Lower monthly payments, more cash flow flexibility
15-Year Mortgage
Loan Amount: $300,000
Interest Rate: 6.0%
Monthly Payment: $2,531
Total Interest: $155,609
Total Paid: $455,609
Benefits: Save $227,024 in interest, own home 15 years sooner
The 15-year mortgage costs $635 more per month but saves over $227,000 in interest!
Mortgage Calculator FAQ
How much house can I afford?
Most lenders recommend that your total monthly housing costs (PITI) should not exceed 28% of your gross monthly income. Your total debt payments (including the mortgage) should not exceed 36% of your gross monthly income.
Example: With $6,000 monthly income, aim for housing costs under $1,680/month
Should I put 20% down or invest the difference?
This depends on your mortgage rate vs. investment returns. If you can earn more investing than your mortgage rate, it may make sense to put less down and invest the difference. However, consider the guaranteed savings from avoiding PMI and lower monthly payments.
What's PMI and how much does it cost?
Private Mortgage Insurance (PMI) is required when you put down less than 20%. It typically costs 0.3% to 1.5% of the loan amount annually, or about $125-$625 per month on a $300,000 loan. PMI can be removed once you reach 20% equity.
Should I pay extra toward my mortgage principal?
Paying extra principal can save significant interest and shorten your loan term. However, consider whether that money could earn more in investments, and ensure you've maximized retirement contributions and have an emergency fund first.
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Ready to Find Your Dream Home?
Use our mortgage calculator to set your budget and start house hunting with confidence.