Mortgage Calculator
Estimate your monthly mortgage payment and see what the loan really costs over its lifetime.
How the mortgage payment is calculated
Your monthly payment covers principal and interest on the amount you borrow (home price minus down payment). The standard amortization formula is:
M = P × r(1+r)n / ((1+r)n - 1)
where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments (years × 12). Early payments are mostly interest; over time the balance shifts toward principal.
What this estimate does not include
Property taxes, homeowners insurance, HOA fees and PMI (usually required when your down payment is under 20%) come on top of the principal-and-interest payment shown here. Lenders often collect taxes and insurance into escrow, so your real monthly bill will be higher than the P&I figure.
Worked example
A $350,000 home with 20% down ($70,000) leaves a $280,000 loan. At 6.5% over 30 years the monthly payment is about $1,770, and you pay roughly $357,000 in interest, more than the loan itself. The same loan over 15 years costs about $2,439 a month but only ~$159,000 in interest.