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.

The calculator updates instantly with every keystroke. 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. By the end of a 30-year mortgage, you'll have paid the lender roughly the original loan amount again, just in interest.

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).

Frequently asked questions