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Mortgage Calculator

Monthly payment with full amortization schedule.

How Mortgage Payments Work

A fixed-rate mortgage payment stays the same every month, but how that payment is divided between principal and interest changes over time. In the first years, most of your payment covers interest. As you pay down the balance, more of each payment goes toward the principal.

The standard amortization formula is:

M = P[r(1+r)^n] / [(1+r)^n - 1]

Where M = monthly payment, P = principal, r = monthly interest rate, n = total payments

How to Use This Calculator

  1. Enter the home price or loan amount
  2. Set the interest rate (annual percentage)
  3. Choose the loan term in years (typically 15 or 30)
  4. View your monthly payment, total interest, and the full amortization schedule

Tips for Reducing Mortgage Costs

  • Larger down payment — Reduces the loan amount and may eliminate PMI
  • Shorter term — 15-year mortgages have lower rates and far less total interest
  • Extra payments — Even small extra monthly payments can save years of interest
  • Rate shopping — Compare offers from at least 3-5 lenders
  • Credit score — A higher credit score qualifies you for better rates

Frequently Asked Questions

How is the monthly mortgage payment calculated?
The monthly payment uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments (years x 12).
What is an amortization schedule?
An amortization schedule shows how each monthly payment is split between principal and interest over the life of the loan. In early years, most of your payment goes to interest. Over time, the principal portion increases as the remaining balance decreases.
Does this include property taxes and insurance?
This calculator shows the principal and interest portion of your mortgage payment. Your actual monthly payment may be higher when you include property taxes, homeowner's insurance, PMI (if applicable), and HOA fees.
What is a good mortgage interest rate?
Mortgage rates vary by market conditions, credit score, down payment, and loan type. Check current rates from multiple lenders. Even a 0.25% difference can save thousands over the life of a 30-year loan.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly less total interest paid. A 30-year mortgage has lower payments, providing more monthly flexibility. Use this calculator to compare both scenarios side by side.
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