Mortgage Calculator
Calculate your monthly mortgage payment, total interest paid, and total cost of your home loan.
See how down payment and interest rate affect your payments.
Monthly Payment
Mortgage payments are calculated using the standard amortization formula for fixed-rate loans:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- M = Monthly payment
- P = Loan amount (Home Price minus Down Payment)
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (years × 12)
Down payment reduces the principal you borrow:
Loan Amount = Home Price × (1 - Down Payment% / 100)
For example, a $400,000 home with 20% down at 6.5% for 30 years:
- Down payment = $80,000
- Loan amount = $320,000
- Monthly payment = $2,023.65
- Total paid over 30 years = $728,514
- Total interest = $408,514
Tips:
- A 20% down payment avoids Private Mortgage Insurance (PMI)
- Even a small rate decrease (e.g., 6.5% to 6.0%) can save thousands over the life of the loan
- Shorter loan terms (15 vs 30 years) have higher payments but much less total interest