🏠 Loan Details

$
$350,000
$
20%
%
6.5%
$
$
$

Your Results

🏡

Enter your loan details and click Calculate to see your monthly payment and breakdown.

📊 Amortization Schedule

Year Payment Principal Interest Balance Principal %

How to Use This Calculator

Enter the following details to calculate your mortgage payment:

1. Home Price

Enter the full purchase price of the property you're buying.

2. Down Payment

The amount you're paying upfront. Use the slider to adjust the percentage. A 20% down payment avoids PMI (Private Mortgage Insurance).

3. Interest Rate

Enter your annual mortgage rate. Check with your lender for the current rate, or use current average rates as a starting point.

4. Loan Term

Choose between 10, 15, 20, or 30 years. A shorter term means higher monthly payments but significantly less total interest paid.

How Monthly Payments Are Calculated

Mortgage payments use the standard amortization formula:

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ - 1]

M = Monthly payment
P = Loan principal
r = Monthly interest rate (annual ÷ 12)
n = Total number of payments

For example, a $280,000 loan at 6.5% for 30 years:

  • Monthly rate r = 6.5% ÷ 12 = 0.5417%
  • n = 30 × 12 = 360 payments
  • Monthly P&I = $1,770

The total of 360 payments = $637,200 — meaning $357,200 goes to interest on top of the $280,000 principal.

30-Year vs 15-Year Mortgage

Choosing your loan term is one of the biggest financial decisions. Here's how they compare on a $300,000 loan at 6.5%:

30-Year Mortgage

  • Monthly payment: ~$1,896
  • Total interest paid: ~$382,500
  • Lower monthly commitment
  • More flexibility for investments

15-Year Mortgage

  • Monthly payment: ~$2,613
  • Total interest paid: ~$170,400
  • Save over $210,000 in interest
  • Build equity much faster

The right choice depends on your income, financial goals, and cash flow needs.

Tips to Lower Your Mortgage Payment

Increase Your Down Payment

Each extra 5% down reduces your principal and may eliminate the need for PMI, saving hundreds per month.

Improve Your Credit Score

A higher credit score can secure a lower interest rate. Even 0.5% less can save tens of thousands over 30 years.

Choose a Longer Term

Extending from 15 to 30 years reduces monthly payments — though you'll pay more interest overall.

Shop Multiple Lenders

Rates vary significantly between lenders. Getting 3-5 quotes can save $50–$150/month on your payment.

Consider Points

Paying mortgage points upfront can lower your rate permanently. Each point equals 1% of the loan amount.

Frequently Asked Questions

A monthly mortgage payment is calculated using the loan principal, annual interest rate divided by 12, and total number of payments. The formula is M = P[r(1+r)^n] / [(1+r)^n - 1]. Our calculator does this instantly as you enter your details.
A full mortgage payment (PITI) includes: Principal (loan repayment), Interest (borrowing cost), Taxes (property taxes, usually escrowed monthly), and Insurance (homeowner's insurance + PMI if applicable). This calculator covers P&I plus optional tax, insurance, and HOA.
An amortization schedule shows how each payment is split between principal and interest over the loan term. In the early years, most of your payment goes to interest. Over time, the principal portion grows. Our calculator generates the full yearly and monthly schedule.
Use the 28/36 rule: spend no more than 28% of your gross monthly income on housing costs, and no more than 36% on all debt. For a $6,000/month income, aim to keep your total mortgage payment under $1,680. Include taxes, insurance, and HOA in that figure.
Yes — significantly. A larger down payment reduces your loan principal, which lowers both your monthly payment and total interest paid. It also helps you avoid PMI (typically 0.5–1.5% of the loan per year) if you put down 20% or more.

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