Mortgage Calculator
Estimate your monthly mortgage payments and view amortization schedule
The result is an estimate from the numbers you entered. It is not financial, investment or tax advice and not an offer of credit — the actual terms are set by your bank. Check important decisions with a qualified specialist. Full disclaimer
How to Use
Fill only the four numbers on screen
Home price, down payment, term and rate. The payment recalculates as you type — there is no Calculate button to press.
Open “More options” only if they apply to you
Property tax, insurance, currency and the payment type live there with sensible defaults. Everything inside still feeds the result immediately.
Try an extra payment — this is where the money is
Use the quick-add chips (+100/+200/+500 a month) and watch “Interest saved” and “Time saved”. On a 30-year loan a small regular overpayment often removes years.
Compare two scenarios side by side
Press “Save calculation” for the first version, change the inputs, then save again. The chips let you jump between them instantly.
The single most useful experiment: compare a 30-year loan to the same loan with a modest monthly overpayment — the calculator shows the interest saved in money.
Optimization Guide & Technical Info
The Ultimate Guide to Mortgage Calculation — Plan Your Home Purchase Like a Pro
Purchasing a home is one of the most significant financial decisions you will ever make. Understanding the long-term costs of a mortgage is crucial for budgeting and financial stability. Our free online mortgage calculator is designed to provide you with a comprehensive breakdown of your monthly housing costs. By factoring in the home price, down payment, interest rate, and loan term, you can see exactly where your money is going and how much home you can truly afford. We also include estimates for property taxes and home insurance to give you a 'PITI' (Principal, Interest, Taxes, and Insurance) estimate, which is what most lenders use to qualify borrowers.
Key Features of Our Online Mortgage Calculator
- Calculate monthly mortgage payment with principal and interest
- Down Payment Analysis: See how increasing your initial payment reduces your long-term interest costs
- Extra payment calculator showing interest savings and reduced loan term
- Full amortization schedule showing payment breakdown month by month
- Visual chart of principal vs interest over the loan life
- Property tax and home insurance added to the monthly payment
- Mortgage vs savings comparison tool
- 100% Client-Side Processing: Your financial data never leaves your browser, ensuring complete privacy
For Specific Situations
First home
set the down payment to what you actually have, not the minimum — it moves the rate the bank offers.
Refinancing
enter the balance you still owe and the new rate, then compare the remaining interest with your current schedule.
Investment property
add the property tax and insurance; they are what turn a rental into a loss.
Early repayment
add a monthly overpayment and read “Time saved” — on a 30-year loan it is usually years, not months.
How Your Mortgage Payment is Calculated
Most mortgages are based on a standard amortization formula. The monthly principal and interest payment (M) is calculated using the formula M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]. In this equation, P is the principal loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the total number of months in the loan term. This formula ensures that by the end of your term, the balance is exactly zero.
In the early years of your mortgage, a larger portion of your monthly payment goes toward interest. As the principal balance decreases, the amount of interest owed also decreases, meaning more of your payment goes toward paying off the house. This is why the principal reduction 'accelerates' toward the end of the loan.
The calculator also adds the other regular costs of owning: property tax as a share of the home value and insurance per year. Both come from what you enter — they differ by place and insurer, so take them from your local tax office and a real quote. With them included, the monthly figure is closer to what actually leaves your account.
Pro Tips for Getting a Better Mortgage Deal
- Decide the monthly payment you can live with first, then move the price until the calculator shows it — not the other way round
- Consider a larger down payment: it lowers the loan and, with many lenders, removes the need for mortgage insurance — ask yours where the threshold is
- Counted in this calculator: $300,000 at 6% for 30 years with one extra payment a year, paid as 1/12 each month, is repaid 5 years 5 months earlier and saves $73,665 of interest; at 4% it is about 4 years, at 8% about 7
- Compare total cost, not just monthly payment — a 15-year mortgage costs significantly less in total interest than a 30-year
- Lock in your interest rate when you find a good one — rates can change daily
- Avoid New Debt: Don't take out car loans or large credit card balances just before applying for a mortgage, as this affects your Debt-to-Income (DTI) ratio
Formulas and Algorithms
M = P · i · (1 + i)n / ((1 + i)n − 1) M — monthly payment, P — loan amount, i — monthly rate, n — number of months.
i = r / 12 / 100 r — the annual rate in percent; banks charge interest month by month.
Σ = M · n − P Everything paid above the loan itself, over the whole term.
LTV = (V − D) / V × 100% V — property price, D — down payment. The rate a bank offers follows this number.
When to Use a Mortgage Calculator
Home buying
Estimate monthly payments to determine how much house you can afford
Refinancing
Compare your current mortgage with potential refinance terms
Extra payments
Calculate how much interest you save by making additional principal payments
Loan comparison
Compare different loan terms (15 vs 30 year), rates, and down payment amounts
Financial Planning
Understand how much of your monthly income will be dedicated to housing for long-term retirement planning
Financial planning
Understand the total cost of homeownership over the full loan period
Frequently Asked Questions
Q: What is included in a typical mortgage payment?
A: A standard payment includes Principal (the loan balance), Interest (the lender's fee), Taxes (property tax), and Insurance (homeowners insurance), often abbreviated as PITI.
Q: What is Private Mortgage Insurance (PMI)?
A: Insurance that a US lender charges for when the down payment is below its threshold. It protects the lender, not you, if the loan is not repaid. Other countries have their own versions; the lender names the terms.
Q: How does the loan term affect my payment?
A: A longer term (like 30 years) has lower monthly payments but costs much more in total interest. A shorter term (15 years) has higher monthly payments but is cheaper overall.
Q: Can I pay off my mortgage early?
A: Most modern mortgages allow for extra principal payments without penalty. This can drastically reduce the amount of interest you pay over time.
Q: Does the calculator include closing costs?
A: No: it focuses on the monthly payment. Ask the lender and the notary for an estimate of the closing costs and add it to the money you need up front.
Q: How accurate are the property tax and insurance estimates?
A: Exactly as accurate as the figures you enter: the calculator does not estimate them itself, and the starting values are placeholders, not a figure for your area. Take the tax rate from your local tax office and the insurance from a real quote.
Q: What is an amortization schedule?
A: It's a table showing every payment you'll make over the life of the loan, broken down by how much goes to interest vs. principal.
Q: Why is my interest payment higher at the beginning?
A: Interest is calculated based on the current balance. Since your balance is highest at the start, the interest charge is also highest then.
Q: What is an escrow account?
A: It's an account where your lender collects your property tax and insurance payments each month and pays them on your behalf when they are due.
Q: Does my credit score affect my mortgage rate?
A: Yes. Lenders price risk, so a better credit history usually gets a lower rate. How much lower depends on the lender — compare quotes, then enter each rate here to see the difference in money.