Mortgage Calculator
A free mortgage calculator helps you estimate your monthly mortgage payment, total interest, and full loan cost before you talk to a lender. Use the tool at the top of this page to model home price, down payment, loan term, and interest rate—then include property taxes, homeowners insurance, PMI, and HOA fees for a realistic total monthly housing payment. You also get a complete amortization schedule showing principal versus interest every month until payoff.
How to Calculate Mortgage Payments
Most U.S. home loans use fixed-rate amortization. Your lender divides repayment into equal monthly installments, but each payment splits differently between interest and principal. Early payments are mostly interest; later payments reduce the balance faster.
The standard mortgage payment formula is:
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
- P = principal (home price minus down payment)
- r = monthly interest rate (annual rate ÷ 12)
- n = number of monthly payments (years × 12)
Total interest = (monthly payment × n) − P. At 0% interest, the monthly payment is simply P ÷ n. AllCalcNow runs these calculations in your browser—no sign-up—and adds taxes and insurance so you see true out-of-pocket cost, not P&I alone.
The amortization schedule above the FAQ lists each month’s interest, principal, and remaining balance. Compare a 15-year vs 30-year mortgage or test how a 0.25% rate change affects lifetime cost.
What Affects Your Monthly Payment?
Five inputs drive most mortgage scenarios on this page:
- Home price — the purchase amount before financing.
- Down payment — reduces the loan; 20% down often avoids PMI.
- Loan term — 30 years lowers the payment vs 15 years but costs more interest overall.
- Interest rate — small rate changes have a large long-term impact.
- Taxes & costs — property tax, insurance, PMI, HOA, and other annual fees.
Credit score, loan program (conventional, FHA, VA), discount points, and closing costs also affect what lenders offer. For personal loans without real estate, try our loan calculator; for quick percent math, use the percentage calculator.
Fixed Rate vs Variable Rate Mortgages
A fixed-rate mortgage keeps the same interest rate for the full term. Your principal-and-interest payment stays stable (escrowed taxes and insurance may still change). Most buyers who plan to stay long-term choose fixed rates for predictable budgeting.
Adjustable-rate mortgages (ARMs) and other variable loans often start with a lower teaser rate, then reset on a schedule. Payments can decrease if rates fall or increase significantly when rates rise. Always model the payment after the first adjustment, not only the introductory period.
This free mortgage calculator assumes a fixed rate—the same baseline most home buyers need. Use it to compare options, then confirm APR, fees, and eligibility with a licensed mortgage professional before you apply.
Frequently Asked Questions
Common questions about monthly payments, rates, down payments, and principal vs interest.
How much mortgage can I afford?
Lenders commonly use debt-to-income (DTI) ratios to determine affordability, typically keeping housing costs (mortgage, taxes, insurance, PMI) near 28% of your gross monthly income and total debt payments near 36%. For example, if you earn $6,000/month gross, your maximum housing payment would be about $1,680. Use this free mortgage calculator with different home prices and down payments, then compare the total monthly payment—including property taxes and insurance—to your real budget to find a comfortable amount.
What is a good interest rate for a mortgage?
A good mortgage interest rate depends heavily on current market conditions, your credit score, the loan term (15 vs 30 years), the loan type (conventional, FHA, VA), and your down payment size. Borrowers with excellent credit (740+) and 20%+ down typically receive the lowest rates. Compare quotes from at least three to five lenders on the same day for an accurate comparison. This calculator shows how even a 0.25% rate change affects both your monthly payment and lifetime interest—the total difference over 30 years can be tens of thousands of dollars.
Is it better to put more money down?
A larger down payment reduces your loan amount, monthly mortgage payment, and total interest paid over the life of the loan. Reaching 20% down typically allows you to avoid private mortgage insurance (PMI), which can save $100–$300/month on a typical home. However, the tradeoff is having less cash available for emergencies, investments, and other financial goals. Use the down payment fields above to model both scenarios and find the right balance for your situation.
What is the difference between principal and interest?
Principal is the amount you borrowed (home price minus your down payment). Interest is the fee charged by the lender on the remaining balance as compensation for lending you the money. In the early years of a mortgage, most of each monthly payment goes toward interest because the outstanding balance is large. As the balance decreases over time, a greater portion of each payment goes toward paying down principal. The amortization schedule on this page shows the exact principal-interest split for every single month of your loan term.
What is PMI and how can I avoid it?
Private Mortgage Insurance (PMI) is an insurance premium that lenders require when your down payment is less than 20% of the home's value. PMI protects the lender (not you) in case you default on the loan. It typically costs 0.5%–1% of the total loan amount per year, added to your monthly payment. You can avoid PMI by making a 20%+ down payment, using a VA loan (which never requires PMI), or requesting PMI removal once you reach 20% equity through payments or home appreciation. Some lenders also offer "lender-paid PMI" options where the cost is built into a slightly higher interest rate.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but significantly lower total interest cost and a faster path to full ownership. A 30-year mortgage has lower monthly payments, giving you more cash flow flexibility, but you pay substantially more interest over the life of the loan. For example, a $300,000 mortgage at 6.5% costs about $2,613/month over 15 years ($170,000 total interest) versus $1,896/month over 30 years ($382,000 total interest). Use this calculator to compare both options side by side and choose based on your budget and financial goals.
Disclaimer: Results are estimates for education only—not financial or legal advice. Rates, fees, and eligibility vary by lender and location.