Mortgage Calculator

Your monthly mortgage payment is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. Additional costs like property taxes, home insurance, and HOA fees are added to this base payment to give you the total monthly cost.

A down payment of 20% is ideal because it eliminates the need for Private Mortgage Insurance (PMI) and results in lower monthly payments. However, many loan programs allow down payments as low as 3-5% for first-time homebuyers (FHA loans) or 0% for VA and USDA loans. A larger down payment reduces your loan amount, lowers your monthly payment, and decreases the total interest paid over the life of the loan.

An amortization schedule is a complete table of periodic loan payments showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. Early in the schedule, the majority of each payment is applied to interest. As the loan matures, larger portions go toward paying down the principal. Our calculator generates a full amortization schedule with interactive charts to help you visualize this process.

Making extra payments on your mortgage can significantly reduce the total interest you pay and shorten your loan term. Even small additional monthly payments can save thousands of dollars in interest over the life of the loan. For example, adding $100 per month to a $400,000 loan at 6.5% interest could save over $60,000 in interest and pay off the loan 5+ years early. Our calculator shows you exactly how much you can save.

Private Mortgage Insurance (PMI) is insurance that protects the lender if you default on your loan. It's typically required when your down payment is less than 20% of the home's purchase price. PMI costs vary but generally range from 0.3% to 1.5% of the original loan amount per year. Once you reach 20% equity in your home, you can request to have PMI removed.

A fixed-rate mortgage has an interest rate that remains the same for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) has an interest rate that can change periodically based on market conditions. ARMs typically start with lower rates than fixed-rate mortgages but carry the risk of rate increases over time. Fixed-rate mortgages are the most common choice for homeowners who plan to stay in their home long-term.

Many lenders collect property taxes and homeowners insurance as part of your monthly payment and hold them in an escrow account. When your tax bill or insurance premium is due, the lender pays it from this account. This ensures these essential payments are made on time. Our calculator includes these costs in your total monthly payment estimate.

No. All mortgage calculations are performed entirely in your browser using client-side JavaScript. Your financial data never leaves your device. We don't store, transmit, or process any of your mortgage information on any server. Your home price, income, and financial details remain completely private and secure.