Mortgage Calculator
Calculate your monthly mortgage payments and see the full amortization schedule. Currently calculating in US Dollar.
Loan Amount
$280,000
Monthly Payment
$1,770
Total Payment
$637,125
Total Interest
$357,125
127.5% of loan
| Year | Principal | Interest | Remaining |
|---|---|---|---|
| 1 | $3,130 | $18,108 | $276,870 |
| 2 | $3,339 | $17,898 | $273,531 |
| 3 | $3,563 | $17,675 | $269,968 |
| 4 | $3,801 | $17,436 | $266,167 |
| 5 | $4,056 | $17,181 | $262,111 |
| 6 | $4,328 | $16,910 | $257,783 |
| 7 | $4,618 | $16,620 | $253,165 |
| 8 | $4,927 | $16,311 | $248,239 |
| 9 | $5,257 | $15,981 | $242,982 |
| 10 | $5,609 | $15,629 | $237,373 |
| 11 | $5,984 | $15,253 | $231,389 |
| 12 | $6,385 | $14,852 | $225,004 |
| 13 | $6,813 | $14,425 | $218,191 |
| 14 | $7,269 | $13,968 | $210,922 |
| 15 | $7,756 | $13,482 | $203,166 |
| 16 | $8,275 | $12,962 | $194,890 |
| 17 | $8,830 | $12,408 | $186,061 |
| 18 | $9,421 | $11,817 | $176,640 |
| 19 | $10,052 | $11,186 | $166,588 |
| 20 | $10,725 | $10,512 | $155,863 |
| 21 | $11,443 | $9,794 | $144,419 |
| 22 | $12,210 | $9,028 | $132,210 |
| 23 | $13,027 | $8,210 | $119,182 |
| 24 | $13,900 | $7,338 | $105,282 |
| 25 | $14,831 | $6,407 | $90,452 |
| 26 | $15,824 | $5,413 | $74,628 |
| 27 | $16,884 | $4,354 | $57,744 |
| 28 | $18,015 | $3,223 | $39,729 |
| 29 | $19,221 | $2,016 | $20,508 |
| 30 | $20,508 | $729 | $0 |
A mortgage calculator is a financial tool that helps you determine your monthly mortgage payments and understand the true cost of borrowing. It takes into account your loan amount, interest rate, and loan term to calculate how much you'll pay each month and over the life of the loan.
This calculator shows you not just the monthly payment, but also the total interest you'll pay, giving you a complete picture of your home financing commitment. It's essential for comparing different loan options and understanding how changes in interest rates or down payments affect your affordability.
Enter Home Price
Input the total purchase price of the property you're considering.
Set Down Payment
Specify how much you'll pay upfront. This reduces your loan amount (typically 10-20% of home price).
Input Interest Rate
Enter your annual interest rate. This varies based on your credit score and market conditions.
Choose Loan Term
Select the number of years to repay (typically 15, 20, or 30 years).
Review Results
Check your monthly payment, total interest, and amortization schedule to understand your loan.
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- M = Monthly mortgage payment
- P = Principal loan amount (home price - down payment)
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of payments (years × 12)
This formula calculates the fixed monthly payment needed to pay off the loan over the specified term. The interest is front-loaded, meaning you pay more interest early in the loan and more principal toward the end.
Example 1: Traditional 30-Year Fixed
• Home Price: $350,000
• Down Payment: $70,000 (20%)
• Loan Amount: $280,000
• Interest Rate: 6.5%
• Term: 30 years
Monthly Payment: $1,774.83
Total Interest Paid: $358,539.60
Example 2: Shorter 15-Year Fixed (Same Property)
• Home Price: $350,000
• Down Payment: $70,000 (20%)
• Loan Amount: $280,000
• Interest Rate: 6.0%
• Term: 15 years
Monthly Payment: $2,103.88
Total Interest Paid: $98,698.40
Saves $259,841.20 in interest!
- •Improve Your Credit Score: A higher credit score typically qualifies you for lower interest rates, saving thousands over the life of the loan.
- •Increase Your Down Payment: Putting down 20% or more avoids PMI (Private Mortgage Insurance) and reduces your monthly payments.
- •Consider Shorter Terms: A 15-year mortgage has higher monthly payments but significantly less total interest paid.
- •Shop Around: Different lenders offer different rates. Compare offers from at least 3-5 lenders before deciding.
- •Plan for Extra Costs: Remember that your total housing cost includes property taxes, insurance, HOA fees, and maintenance.
- •Make Extra Payments: Even small additional payments toward principal can significantly reduce interest and shorten your loan term.
What's the difference between 15 and 30-year mortgages?
A 30-year mortgage has lower monthly payments but costs significantly more in total interest. A 15-year mortgage has higher monthly payments but saves substantial interest and builds equity faster.
What is PMI and can I avoid it?
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. You can avoid it by saving for a larger down payment or waiting until you have 20% equity to remove it.
What counts as a good interest rate?
Interest rates vary based on market conditions, your credit score, and loan terms. Currently, rates typically range from 5.5% to 7.5%, but check with lenders for current rates based on your situation.
How does the amortization schedule work?
Early payments are mostly interest; later payments are mostly principal. The amortization schedule shows exactly how much of each payment goes to interest vs. principal each month.
Should I get a fixed or adjustable rate mortgage?
Fixed-rate mortgages have stable payments but are typically higher initially. ARMs have lower starting rates but can increase later. Fixed rates are generally safer for long-term planning.
Can I pay off my mortgage early?
Yes, most mortgages allow early payments without penalty. Extra payments toward principal can save substantial interest and help you own your home years earlier.
Principal vs Interest
Principal is the amount you borrowed. Interest is what the lender charges you for borrowing. In the beginning, most of your payment goes to interest; toward the end, most goes to principal.
How Interest Rates Affect Your Costs
A small difference in interest rate can have a huge impact. For a $300,000 loan over 30 years:
- • At 5%: Monthly payment = $1,610, Total interest = $280,000
- • At 6%: Monthly payment = $1,799, Total interest = $347,515
- • At 7%: Monthly payment = $1,996, Total interest = $418,600
The Impact of Down Payment
A larger down payment reduces the loan amount, which means lower monthly payments and less total interest. It also helps you avoid PMI and shows the lender you're serious about the purchase.
Building Home Equity
As you make payments, you build equity (ownership) in your home. After 15-20 years, you'll own a significant portion of the home, and by the end of the loan, you'll own it outright.
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