Need context? Read our mortgage and home buying guide for assumptions and strategy.
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Mortgage payment guide
Use this calculator to estimate principal and interest and see how your balance changes over time. To build a full housing budget, include taxes, insurance, and any HOA dues.
Inputs that move the needle
Interest rate, loan term, and down payment drive most of the difference in payment size and total interest.
Full housing payment
Many borrowers pay more than principal and interest. Taxes, insurance, and mortgage insurance can change your real monthly cost.
Compare offers correctly
Shop lenders on the same day and compare both rate and closing costs for a true apples-to-apples view.
How this calculator works
- Uses a standard amortization formula based on the loan amount, interest rate, and term.
- Builds a yearly amortization schedule showing how payments split between principal and interest.
- Total interest reflects the sum of interest over the life of the loan.
Ways to reduce total cost
- Increase the down payment to reduce the loan size and potential mortgage insurance.
- Choose a shorter term if the higher monthly payment fits your budget.
- Make extra principal payments when possible to shorten the schedule.
- Compare multiple lenders and understand all fees before committing.
Before you lock a rate
- Estimate property taxes, homeowners insurance, and HOA dues.
- Review the loan estimate for points, origination charges, and other fees.
- Confirm whether the rate is fixed or adjustable and how resets work.
Mortgage calculator FAQ
How is a mortgage payment calculated?
The payment is calculated with a standard amortization formula using loan amount, interest rate, and term. The full housing payment can also include property taxes, homeowners insurance, and mortgage insurance.
What is a good mortgage interest rate?
A good rate is one that is below the average available to borrowers with similar credit, down payment, and loan type. Rates move daily, so compare multiple lenders on the same day.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan usually has a lower rate and less total interest but higher monthly payments. A 30-year loan lowers the monthly payment and improves cash flow but costs more interest over time.
What is PMI and when is it required?
Private mortgage insurance is typically required on conventional loans when the down payment is below 20% or equity is under 20%. It may be removable after you reach the required equity, depending on your loan.