Mortgage Calculator

To calculate monthly mortgage payment, enter home price, down payment amount, loan term (typically 15 or 30 years), and interest rate. Our free mortgage calculator computes Principal + Interest (P&I) using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P=loan amount, r=monthly rate, n=months. Total monthly payment includes property taxes, homeowners insurance, and PMI if down payment is under 20%. Use our calculator to see complete payment breakdown with amortization schedule.

Minimum down payment requirements vary: Conventional loans typically need 3-20%; FHA loans require as low as 3.5%; VA loans (for veterans) can be 0%; USDA loans (rural areas) also offer 0% down. However, putting down 20% or more helps you avoid Private Mortgage Insurance (PMI), reduces monthly payments, lowers interest rates, and decreases total loan costs. Higher down payments also make your offer more attractive to sellers in competitive markets.

30-year mortgages offer lower monthly payments (making homeownership more affordable) but result in significantly higher total interest paid over the loan term. 15-year mortgages have higher monthly payments but you build equity faster, pay dramatically less interest (often 50% less), and become mortgage-free sooner. Choose 30-year if you need lower payments or want flexibility to invest elsewhere; choose 15-year if you can afford higher payments and want to save on interest and own your home outright faster.

Interest rates dramatically impact both monthly payments and total costs. For example, on a $300,000 loan: at 6% rate for 30 years, monthly payment is $1,799 with total interest of $347,515; at 7% rate, monthly jumps to $1,996 with total interest of $418,527 - a difference of $71,012! Even 0.5% rate changes significantly affect affordability. Shop multiple lenders, improve credit scores, consider points to buy down rates, and time your purchase when rates are favorable to maximize savings.

An amortization schedule is a complete payment-by-payment breakdown showing exactly how much of each monthly mortgage payment goes toward principal vs interest over the entire loan term. Early in the loan, most payment is interest; gradually more goes to principal. This schedule helps you understand: total interest costs, when you build significant equity, optimal times for refinancing or prepayment, and how extra payments accelerate payoff. Our mortgage calculator generates detailed amortization tables showing year-by-year and month-by-month breakdowns.