Mortgage Calculator
Calculate your monthly mortgage payment, total interest and first-year amortization schedule. Optional property tax and insurance included.
Enter the home price, down payment, rate and term, then press Calculate payment.
What the mortgage calculator does
This calculator works out the fixed monthly principal and interest payment for a home loan. You enter the home price, the down payment, the annual interest rate and the length of the loan. It then shows the monthly payment, the total you will pay over the full term, the interest portion of that total, and a month-by-month schedule for the first year.
Everything runs in your browser, and nothing you type is sent anywhere. The result uses the standard amortization formula for a fixed-rate loan with equal monthly payments. It does not include lender fees, points, mortgage insurance, or any rate change that might happen during the term.
How to use it
- Enter the home price, which is the agreed purchase price.
- Enter the down payment as a dollar amount. It must be smaller than the home price. The loan amount is the difference.
- Enter the annual interest rate as a percentage, such as 6.5. Enter 0 for an interest-free loan.
- Enter the loan term in whole years, from 1 to 50.
- Optionally enter a monthly property tax and a monthly insurance amount. Leave them blank if you only want principal and interest.
- Press Calculate payment, then read the monthly figure, the totals and the first 12 rows of the schedule.
Worked example
Suppose the home costs $350,000 and you put $70,000 down, which leaves a loan of $280,000. The rate is 6.5% over 30 years. The monthly rate is 0.065 divided by 12, or 0.0054167, and there are 360 payments. The standard formula gives a principal and interest payment of about $1,769.80.
Across all 360 payments you pay roughly $637,128, so about $357,128 of that is interest. In the first month, interest is $280,000 × 0.0054167, or $1,516.67. That leaves only $253.13 for principal, and the balance after payment one is $279,746.87. Early payments are mostly interest, and the split shifts slowly toward principal over the years.
Tips and limits
- A larger down payment reduces the loan and the interest, but keep enough cash back for closing costs and an emergency reserve.
- A 15-year term has a higher monthly payment and much less total interest than a 30-year term at the same rate. Run both by changing only the term.
- Property tax and insurance vary by location and change over time. Use local estimates, and remember that many lenders collect them through an escrow account.
- Treat the result as a planning figure. A real quote depends on credit, points and the loan type, and an adjustable-rate loan changes after its introductory period.
Mortgage Calculator – Frequently Asked Questions
How is the monthly mortgage payment calculated?
The principal and interest payment equals P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the annual rate divided by 12, and n is the number of monthly payments. At a 0% rate the payment is simply the loan divided by the number of months.
Does the result include property tax and insurance?
Only if you enter them. Property tax and insurance are optional monthly amounts that are added to the total monthly payment shown in the summary. They are not part of the interest calculation.
Why is most of the first payment interest?
Interest is charged each month on the outstanding balance. At the start the balance is the full loan, so interest takes the largest share of the payment. As the balance falls, a bigger share goes to principal.
Are closing costs or mortgage insurance included?
No. Lender fees, discount points, private mortgage insurance and association fees are not included. A loan estimate from your lender lists these separately.
Which loan terms can I enter?
Whole-year terms from 1 to 50 are accepted. Most fixed-rate home loans are offered as 15 or 30 years, so check which terms your lender actually offers before comparing results.