Mortgage Payment Calculator
Calculate your monthly mortgage payment including principal and interest. See total cost over the life of your loan.
Your estimated monthly mortgage payment is $1,896 for a $300,000 loan at 6.5% over 30 years.
Why This Calculation Matters
The Mortgage Payment Calculator helps you make better mortgages decisions by putting the math directly in front of you. Instead of relying on averages or guesswork, plug in your own numbers and see how the key inputs, rate, term, amount, and timing, interact. Small changes to any one of them can have outsized effects over years or decades.
How to Use This Calculator
- Enter your values in the input fields, each one has a label and help text explaining what to type.
- Results appear instantly as you type; there's no "calculate" button to press.
- Change any input to compare scenarios side by side.
All math happens in your browser. Nothing you type is sent to a server, saved, or shared.
Key Inputs to Get Right
The most important numbers are usually the interest rate and the time horizon. Over years or decades, small rate differences compound into large dollar differences, so it's worth sanity-checking the rate against current market data before acting on any result.
How Mortgage Payments Work
Your monthly mortgage payment is calculated using the standard amortization formula, which divides your loan into equal monthly payments of principal and interest.
The Formula
M = P × [r(1+r)^n] / [(1+r)^n, 1]
Where:
- M = monthly payment
- P = principal (loan amount)
- r = monthly interest rate
- n = total number of payments
Tips for Lower Payments
- Make a larger down payment to reduce principal
- Shop around for the best interest rate
- Consider a 15-year term for lower total interest
- Check if you qualify for first-time buyer programs
Formula
Monthly payment uses the standard amortization formula:
M = P × (r(1+r)^n) / ((1+r)^n − 1)
Where P is loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). Total interest paid equals M × n − P.
Worked Example
A $300,000 mortgage at 6.5% for 30 years.
- Loan amount
- $300,000
- Interest rate
- 6.5%
- Term
- 30 years
- Result
- $1,896 / month
Over the life of the loan, you'll pay about $382,633 in interest.
When to Use This Calculator
- Model scenarios before making a major financial decision involving mortgages.
- Compare different inputs side by side to see how rate, term, or amount changes your outcome.
- Sanity-check numbers a lender, advisor, or spreadsheet has given you.
- Build a realistic financial plan grounded in your actual numbers, not averages.
Limitations & Common Mistakes
- Results are estimates, actual terms depend on credit, lender policy, taxes, and fees not captured here.
- Rates and prices change daily; recompute with current numbers before signing documents.
- Does not constitute financial advice. For major decisions, consult a licensed advisor.
Frequently Asked Questions
How is my monthly mortgage payment calculated?
Your monthly payment is calculated using the amortization formula which divides your total loan (principal + interest) into equal monthly payments. The formula accounts for compound interest, so early payments are mostly interest while later payments are mostly principal.
Does this include property taxes and insurance?
This calculator shows principal and interest only. Your actual monthly payment (PITI) will also include property taxes, homeowner's insurance, and possibly PMI if your down payment is less than 20%.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but dramatically lower total interest cost. A 30-year mortgage has lower monthly payments but you'll pay significantly more in interest over the life of the loan. Choose based on what you can comfortably afford monthly.
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Amortization Schedule Calculator
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Key terms
- AmortizationThe process of paying off a debt with regular, equal payments over a scheduled term. Each payment covers both interest on the remaining balance and a portion of…
- Debt-to-Income Ratio (DTI)The percentage of your gross monthly income that goes to minimum debt payments. Mortgage underwriters use DTI as the primary affordability gate: most convention…
- Private Mortgage Insurance (PMI)Insurance required by most lenders when a conventional mortgage borrower puts less than 20% down. PMI protects the lender, not the borrower, against default los…
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