Mortgage Calculator

1. Enter the total home price in the Home Price field.
2. Set your down payment as a dollar amount or percentage -- both fields stay in sync.
3. Enter the annual interest rate (e.g., 6.5 for 6.5%).
4. Select a loan term using the preset buttons (15, 20, or 30 years) or type a custom value.
5. View your monthly payment, total payment, total interest, and loan amount instantly.
6. Click "Amortization Schedule" to see the full month-by-month payment breakdown.

What Is a Mortgage?

A mortgage is a secured loan used to purchase real estate, where the property itself serves as collateral for the lender. If the borrower fails to make payments, the lender can foreclose on the property to recover the outstanding balance. Fixed-rate mortgages carry the same interest rate and monthly payment for the entire loan term, making budgeting straightforward and predictable. Adjustable-rate mortgages (ARMs) may start with a lower introductory rate but can fluctuate over time based on market conditions. Most homebuyers in the United States finance their purchase with a mortgage, making it one of the most common and significant financial commitments a person will ever take on.

How Mortgage Payments Are Calculated

This calculator uses the standard amortization formula to compute your fixed monthly payment: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan principal (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (loan term in years multiplied by 12). Each payment is split between interest charged on the remaining balance and principal repayment. In the early years of a mortgage, the majority of each payment covers interest. Over time, the principal portion grows as the outstanding balance decreases. The amortization schedule produced by this calculator shows this shift in detail for every month of your loan.

Common Use Cases

• Estimating monthly payments before making an offer on a home
• Comparing different down payment amounts to see how they affect your payment
• Evaluating the total cost difference between 15-year and 30-year loan terms
• Understanding how much of your payment goes to interest versus principal
• Planning your budget by seeing the full amortization schedule over the life of the loan
• Deciding whether to refinance an existing mortgage at a lower rate

15-Year vs. 30-Year Mortgage: Which Is Right for You?

Choosing between a 15-year and a 30-year mortgage is one of the most important decisions in home financing. A 15-year mortgage typically comes with a lower interest rate (often 0.5% to 1% lower than a 30-year loan) and saves borrowers a substantial amount in total interest. For example, on a $300,000 loan at 7%, a 30-year mortgage costs roughly $418,527 in total interest, while a 15-year mortgage at 6.5% costs approximately $170,388. That is a savings of nearly $248,000.

However, the trade-off is a significantly higher monthly payment. The same $300,000 loan at 7% over 30 years requires about $1,996 per month, while the 15-year option at 6.5% demands roughly $2,613 per month. Borrowers who can comfortably afford the higher payment build equity faster and become debt-free sooner. Those who need more cash flow flexibility may prefer the 30-year option, with the freedom to make extra payments when finances allow. Your total cost of homeownership also includes property taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is less than 20%.

Compare different borrowing strategies with our Loan Calculator, see how your savings grow over time with the Compound Interest Calculator, or explore vehicle financing with the Auto Loan Calculator.