FINANCIAL CALCULATOR
Mortgage Payment Calculator
Estimate your monthly principal-and-interest payment, review total mortgage interest, and compare fixed-rate loan scenarios. You can also estimate property taxes, insurance, and other housing costs when the optional cost settings are enabled.
Mortgage Calculator
Modify the values and click Calculate to update the estimate.
Payment Breakdown
Monthly amount and estimated cost over the loan term.
| Cost | Monthly | Over term |
|---|---|---|
| Mortgage Payment | $2,022.62 | $728,142.36 |
| Property Tax | $400.00 | $144,000.00 |
| Home Insurance | $125.00 | $45,000.00 |
| Total Out-of-Pocket | $2,547.62 | $917,142.36 |
Where Your Money Goes
Estimated lifetime cost composition.
Mortgage Summary
Key figures from your calculation.
Mortgage Balance
Estimated remaining balance over the loan term.
Principal vs. Interest
Annual payment allocation throughout the mortgage.
Amortization Schedule
See how each payment reduces the balance and covers interest.
What Is a Mortgage Payment?
A mortgage payment is an amount paid to repay a home loan on a regular schedule. For a typical fixed-rate mortgage, the principal-and-interest payment depends on the amount borrowed, the interest rate, and the length of the loan.
Principal is the amount originally borrowed to purchase the home. Interest is the cost of borrowing that money from the lender. As the loan balance decreases, the portion of each scheduled payment applied to principal generally increases, while the interest portion decreases.
The standard mortgage payment covers principal and interest. Enable Include Taxes & Costs to estimate supported additional expenses, such as property taxes, homeowners insurance, mortgage insurance, HOA fees, and other monthly costs. These amounts are estimates; actual housing expenses may differ.
How to Use the Mortgage Calculator
Enter the home price, down payment, annual interest rate, and loan term. The calculator estimates the loan amount, monthly principal and interest, total interest, and total scheduled payments. To estimate a broader monthly housing cost, enable Include Taxes & Costs and enter the applicable amounts.
- Home price: Enter the purchase price of the property.
- Down payment: Enter the amount you plan to pay upfront, either as a percentage or a dollar amount.
- Interest rate: Enter the annual interest rate for the mortgage.
- Loan term: Enter the number of years over which you plan to repay the mortgage.
Once you calculate, review the estimated loan amount, monthly payment, total interest, and total payments together. Comparing these results across different rates, down payments, and terms can help you understand how each choice affects borrowing costs.
Understanding Your Mortgage Results
The results summarize the principal-and-interest cost of a fixed-rate mortgage and, when selected, supported estimates for additional monthly housing expenses.
- Monthly principal and interest: The estimated monthly amount applied to the loan principal and interest.
- Loan amount: The amount borrowed after subtracting the down payment from the home price.
- Down payment: The upfront amount, shown as a dollar value and a percentage when those values are available.
- Total interest: The estimated interest paid over the full loan term.
- Total payments: The combined principal and interest paid through all scheduled monthly payments.
Mortgage Payment Formula
A standard fixed-rate mortgage uses the loan principal, monthly interest rate, and number of monthly payments to calculate the principal-and-interest payment. For a loan with a non-zero interest rate, the formula is:
In this formula:
M= monthly principal-and-interest paymentP= original loan principalr= monthly interest rate, expressed as a decimaln= total number of monthly payments
Convert the annual interest rate to a monthly rate by dividing it by 12. For example, a 6.5% annual rate becomes 0.065 ÷ 12 for the monthly calculation. The total number of payments is the loan term in years multiplied by 12; a 30-year mortgage has 360 scheduled payments.
A zero-interest loan uses a separate calculation: the loan amount is divided evenly across the number of scheduled monthly payments.
Mortgage Calculator Example
Suppose you buy a $400,000 home with a 20% down payment, a 6.5% annual interest rate, and a 30-year loan term. The estimated figures are:
- Home price: $400,000
- Down payment: $80,000 (20%)
- Loan amount: $320,000
- Annual interest rate: 6.5%
- Loan term: 30 years
- Monthly principal and interest: about $2,022.62
Over 30 years, the estimated total principal-and-interest payments would be about $728,142.36, including approximately $408,142.36 in interest. This example excludes property taxes, insurance, HOA fees, closing costs, and other expenses that may apply to homeownership.
A larger down payment reduces the amount borrowed. If the home price, interest rate, and loan term stay the same, a smaller starting loan balance generally results in a lower monthly payment and less total interest. The calculator lets you compare a percentage-based down payment with a specific dollar amount.
Interest rates also affect borrowing costs. For the same home price, down payment, and loan term, a higher rate generally increases both the monthly payment and the total interest paid. Try different values to compare how the estimates change.
15-Year vs. 30-Year Mortgage
The loan term affects both the required monthly payment and the amount of interest paid over the life of the mortgage. The comparison below describes typical differences when other loan conditions are similar.
| Factor | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Repayment period | Shorter | Longer |
| Monthly payment | Generally higher | Generally lower |
| Total interest | Generally lower | Generally higher |
A shorter term repays the balance over fewer payments. The monthly principal-and-interest payment is generally higher, but interest has less time to accrue. A longer term spreads repayment over more months, which generally lowers the monthly payment but can increase total interest.
What Affects Your Mortgage Payment?
Several factors influence the monthly mortgage payment and the total cost of borrowing:
- Home price: A higher purchase price generally means a larger loan and higher payments, all else being equal.
- Down payment: A larger upfront payment reduces the amount you need to borrow.
- Interest rate: A higher rate generally increases the monthly payment and total interest.
- Loan term: A longer term can lower the monthly payment but generally increases total interest.
What Does This Mortgage Calculator Not Include?
The standard mortgage payment covers principal and interest. When Include Taxes & Costs is enabled, the calculator can add the additional monthly estimates supported by its inputs. It does not account for every expense associated with buying or owning a home.
Costs not modeled in the estimate include closing costs, utilities, maintenance, repairs, and other property-specific expenses. These costs can vary by property, location, lender, and service provider. As a result, your actual monthly housing expense may differ from the calculated payment.
Mortgage Calculator Limitations
This calculator provides an estimate based on the information you enter. The standard calculation assumes a fixed interest rate and a regular monthly repayment schedule. Actual mortgage terms and costs depend on the lender, loan program, borrower qualifications, property, fees, and other factors. Use the estimate for comparison and planning, not as a loan offer or quote.
For independent home-buying guidance, review the Consumer Financial Protection Bureau's Owning a Home resources.
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Frequently Asked Questions
How much is a $400,000 mortgage per month?
The payment depends on the amount borrowed, interest rate, and loan term. For example, a $320,000 loan at 6.5% annual interest over 30 years has an estimated monthly principal-and-interest payment of about $2,022.62.
Does this mortgage calculator include property taxes?
Yes. Enable Include Taxes & Costs and enter the applicable amounts to estimate supported costs such as property taxes, homeowners insurance, mortgage insurance, HOA fees, and other monthly expenses. Actual costs may differ.
Can I enter my down payment as a percentage?
Yes. Enter the down payment as a percentage of the home price or as a dollar amount.
Does a longer mortgage term lower the monthly payment?
Generally, spreading repayment over a longer period reduces the required monthly principal-and-interest payment. However, it can increase the total interest paid over the life of the loan.
What happens if the interest rate is 0%?
For a zero-interest loan, the payment is calculated by dividing the loan amount evenly across the scheduled monthly payments.
What is the difference between principal and interest?
Principal is the amount borrowed for the mortgage. Interest is the cost charged by the lender for borrowing that money. Mortgage payments can include amounts applied to both principal and interest.
What is total mortgage interest?
Total interest is the estimated interest paid over the entire loan term, excluding repayment of the original loan principal.
Does this calculator show my complete monthly housing payment?
It can estimate a broader monthly cost when Include Taxes & Costs is enabled and the applicable amounts are entered. Otherwise, the result is principal and interest only. Even with optional costs included, closing costs, utilities, maintenance, repairs, and other expenses may not be reflected.