Mortgage Calculator
Buying a home? Enter the price, down payment, rate and term to see your monthly principal-and-interest payment — and what the loan really costs over its lifetime.
How it works
- Enter the home price and your down payment — as a dollar amount or a percent of the price.
- Add the interest rate (APR) and loan term. 30 years is standard; 15 builds equity much faster.
- Hit Calculate to see your monthly principal & interest, total interest and total loan cost.
This covers principal and interest only — property taxes, homeowner's insurance and PMI (usually required if your down payment is under 20%) are paid on top, typically through escrow.
Worked example
A $400,000 home with 20% down ($80,000) at 6.5% APR over 30 years means borrowing $320,000. Monthly principal & interest: $2,022/mo. Total interest over the life of the loan: $408,142. True cost of the home: $728,142 (plus taxes and insurance).
The math behind it
The standard amortization formula: Payment = P × r(1+r)n / ((1+r)n − 1), where P is the loan amount (price minus down payment), r is the monthly rate (APR ÷ 12 ÷ 100) and n is the number of monthly payments. Early payments are mostly interest; later ones are mostly principal.
Common mistakes
- Forgetting property taxes, insurance and PMI on top of the P&I payment.
- Comparing only monthly payments instead of total interest paid.
- Confusing the note rate with APR when comparing lenders.
- Stretching to the maximum approval amount with no emergency buffer left.
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Frequently asked questions
How is this different from the loan payment calculator?
Same amortization math, framed for home buying: it starts from the home price and down payment, and reminds you about property taxes, insurance and PMI that a generic loan calculator skips.
Does the result include property taxes and insurance?
No — principal and interest only. Taxes and homeowner's insurance are usually collected monthly through escrow on top of this payment.
How much should I put down?
20% avoids private mortgage insurance (PMI). Less is possible with conventional PMI or FHA loans, but it raises your monthly cost.
15-year vs 30-year — which is better?
A 15-year loan charges far less total interest but a much higher monthly payment. Choose the shortest term whose payment still leaves you a comfortable buffer.
What is PMI?
Private mortgage insurance — usually required when your down payment is under 20%. It protects the lender, not you, and typically drops off once you reach 20% equity.
Is this financial advice?
No. This is a planning tool for informational purposes only — not financial advice. Talk to a licensed lender or advisor for your situation.