Mortgage Payment Calculator
Work out the monthly payment on a fixed-rate mortgage in a few seconds. Enter the home price, your down payment, the interest rate and the loan term to see the principal and interest payment.
Add your yearly property tax and home insurance to see an estimated total monthly housing payment, and see how much interest you would pay over the whole loan.
How to use it
- Enter the price of the home and how much you plan to put down.
- Enter the yearly interest rate you have been quoted and pick the loan term.
- Optionally add yearly property tax and insurance for a fuller monthly estimate.
- The monthly payment and the totals update as you type.
How it works
M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P is the loan amount (home price minus down payment), r is the monthly interest rate (the yearly rate divided by 12, as a decimal) and n is the number of monthly payments (years × 12). This is the standard amortization formula for a fixed-rate loan. With a 0% rate the payment is simply P ÷ n.
The estimated monthly payment adds one twelfth of the yearly property tax and home insurance to the principal and interest. It does not include private mortgage insurance, HOA fees or closing costs, which vary by lender and location.
Total interest is the sum of all payments minus the amount borrowed.
Worked example
| Home price | 400,000 $ |
|---|---|
| Down payment | 80,000 $ |
| Interest rate | 6.5 % a year |
| Loan term | 30 years |
| Property tax per year | 4,800 $ |
| Home insurance per year | 1,500 $ |
| Estimated monthly payment | $2,547.62 |
| Principal and interest | $2,022.62 |
| Loan amount | $320,000.00 |
| Total interest over the loan | $408,142.36 |
| Total of all principal and interest payments | $728,142.36 |
Questions and answers
What does principal and interest mean?
Principal is the part of each payment that pays down the amount you borrowed. Interest is the cost of borrowing. With a fixed-rate loan the combined payment stays the same every month, but early payments are mostly interest.
Why is my lender's quote different?
Lenders may add private mortgage insurance, HOA dues, escrow amounts or fees, and the rate you qualify for can differ from the one you entered. Use this tool for estimates and rely on your loan estimate document for exact figures.
How much does a lower rate save?
Try entering two rates one after the other. On a $320,000 loan over 30 years, each percentage point changes the monthly payment by roughly $200, and the total interest by tens of thousands of dollars.
Is a 15-year mortgage cheaper than a 30-year one?
The monthly payment is higher on a 15-year loan, but you pay interest for half as long, so the total interest is much lower. Switch the loan term to compare the two.
Does this include PMI?
No. Private mortgage insurance is often required when the down payment is under 20% of the price, and its cost depends on the lender, so it is not included here.
Embed this tool
Related tools
For information only. Results come from the standard formula shown above and are estimates, not financial advice. Your lender or a qualified professional can confirm figures for your situation.