Mortgage Payment Calculator
Estimate your monthly mortgage payment and see how much you'll pay in total over the life of the loan.
Calculate Your Mortgage Payment
How Mortgage Payments Work
A fixed-rate mortgage divides the total cost of a loan into equal monthly payments over the loan term. Each payment covers two components:
- Principal — the portion that reduces your remaining loan balance.
- Interest — the cost charged by the lender for borrowing the money.
In the early years most of your payment goes toward interest. As the balance shrinks, a larger share of each payment reduces the principal. This process is called amortization.
Your monthly payment stays the same for the entire loan term, but the split between principal and interest shifts over time. A larger down payment reduces the loan amount, which lowers both your monthly payment and total interest paid.
Mortgage Payment Formula
The standard formula for a fixed-rate mortgage payment is:
When the interest rate is 0%, the formula simplifies to dividing the principal evenly across all payments: M = P / n.
Example Mortgage Calculation
Suppose you buy a home for $350,000 with a $70,000 down payment (20%), a 30-year term, and a 6.5% interest rate.
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Frequently Asked Questions
What is included in a mortgage payment?
This calculator shows the principal and interest portion of a mortgage payment. In practice, your actual monthly payment may also include property taxes, homeowner's insurance, and private mortgage insurance (PMI) if your down payment is less than 20%. These additional costs vary by location and lender.
How does the loan term affect my payment?
A shorter loan term (e.g., 15 years) results in higher monthly payments but significantly less total interest paid over the life of the loan. A longer term (e.g., 30 years) lowers monthly payments but increases total interest. Choose a term that balances affordable monthly payments with your goal to minimize interest costs.
Should I make a larger down payment?
A larger down payment reduces the loan principal, which lowers both your monthly payment and total interest. Putting down at least 20% also eliminates the need for private mortgage insurance (PMI), saving you additional monthly costs. However, you should balance a larger down payment against maintaining an adequate emergency fund.
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Compare Mortgage Rates
Even a small difference in interest rates can save you thousands over the life of your loan. Before committing to a mortgage, consider comparing offers from multiple lenders to find the best rate and terms for your financial situation.
What to Look For When Comparing Mortgage Rates
Even a 0.25% difference in your mortgage rate changes your total interest paid by tens of thousands of dollars over a 30-year term. When evaluating lenders, consider these factors alongside the headline rate:
- APR vs. interest rate — the APR includes origination fees and gives a more accurate total-cost comparison across lenders
- Points — paying discount points upfront lowers your rate but extends the break-even period; worthwhile only if you stay in the home long enough
- Fixed vs. adjustable — ARMs start lower but carry rate-reset risk after the initial period; fixed rates offer long-term payment certainty
- Lender type — banks, credit unions, and online lenders each offer different rate structures, underwriting timelines, and service models
- Rate lock period — confirm how long the quoted rate is guaranteed during the underwriting process before you are committed