Finance
Mortgage Calculator
Estimate monthly mortgage payments. Change the inputs below and the estimate updates immediately.
Input
Your numbers
Calculated result
Monthly principal & interest
$2,022.62
Loan amount
$320,000.00
Total interest
$408,142.36
Estimate only. Verify important decisions with an appropriate professional or official source.
How to use it
A quick estimate, without the spreadsheet.
Inputs and units
Enter the home price, cash down payment, annual interest rate and loan term in years.
Formula
Monthly payment = P × r / (1 − (1 + r)^−m), where P is price minus down payment, r is annual interest divided by 1,200 and m is years × 12. At zero interest, payment is P / m.
Worked example
$100,000 borrowed at 0% for 10 years costs $833.33 per month.
Assumptions and limitations
Includes principal and interest only. Property taxes, insurance, PMI, HOA fees and closing costs are excluded.
Understanding your result
The monthly result is the payment needed to repay the amount borrowed over the selected term. It covers principal and interest. Build a separate housing budget for property taxes, insurance, mortgage insurance, association charges and maintenance before comparing the result with your income.
A practical comparison
For a $300,000 home with $60,000 down, the amount borrowed is $240,000. At 6% over 30 years, principal and interest are about $1,438.92 per month. Keeping the same loan and rate but choosing 15 years raises the payment to about $2,025.26 while reducing the number of payments. Compare both monthly affordability and total interest.
Common mistakes
- Enter the home price and down payment separately; entering the loan balance as the price and subtracting the down payment again understates the loan.
- Use the annual loan interest rate. APR can include fees, so it may differ from the rate used to calculate scheduled payments.
- A lower monthly payment achieved by extending the term can increase total interest.
Frequently asked questions
Why does my lender quote a different payment?
A lender may include escrow, mortgage insurance or fees. Compare the principal-and-interest line first, then check the loan amount, note rate and term.
Can I use this for an adjustable-rate mortgage?
You can model one fixed-rate period as a scenario, but the result holds the entered rate constant for the entire term. It does not forecast resets or payment caps.
Further guidance: CFPB homebuying resources.