Mortgage Payment Calculator

How to use this mortgage calculator

Enter the home price you're considering and your down payment as a percentage of that price. A 20% down payment on a $400,000 home means you put $80,000 down, leaving a $320,000 loan. Then enter your interest rate — check with lenders for current quotes, or use the Freddie Mac weekly average as a benchmark — and your desired loan term in years.

Click calculate to see your results. Try different scenarios: compare a 15-year term vs. a 30-year term, or see how putting 10% down vs. 20% down changes your monthly payment and total interest bill.

How your monthly payment is calculated

Your payment is calculated using the standard amortization formula used by banks worldwide:

• Loan amount = home price × (1 - down payment %)
• Monthly rate = annual interest rate ÷ 12
• Monthly payment = Loan × [r(1+r)ⁿ] ÷ [(1+r)ⁿ - 1], where r = monthly rate and n = total months

In the early years of your loan, most of each payment goes toward interest. Over time, more goes toward principal — this is called amortization. Depending on the interest rate, total interest paid over a 30-year mortgage can approach or even exceed the amount originally borrowed.

What's not included in this estimate

Your real monthly housing payment is typically larger than the P&I shown here. Common additional costs include: property taxes (varies widely by state and county, typically 0.5%–2.5% of home value per year), homeowners insurance (typically $1,000–$3,000/year), and PMI (if your down payment is under 20%, usually 0.5%–1.5% of the loan amount per year, until you reach 20% equity).