Use this free mortgage calculator to estimate your monthly mortgage payment, total interest and total amount paid based on the home price, down payment, interest rate and loan term.
This mortgage payment calculator can help you compare different home loan scenarios. Enter the home price, down payment, annual interest rate and mortgage term to estimate the monthly principal and interest payment and see how the balance changes through the mortgage amortization schedule.
You can also use the calculator to compare a 30-year mortgage with other loan terms, test different interest rates and see how changing the down payment affects the amount you need to borrow.
Mortgage Payment Calculator
Mortgage Amortization Schedule
The table below shows how your estimated mortgage balance could change each year based on the assumptions entered above.
The schedule separates the estimated amount paid toward principal from the interest paid during each year and shows the remaining mortgage balance.
| Year | Principal paid | Interest paid | Remaining balance |
|---|
Mortgage Balance and Repayment Over Time
Track how your outstanding mortgage balance decreases as you repay principal and pay interest over the loan term.
Monthly Mortgage Payment Calculator
This calculator estimates the monthly principal and interest payment for a mortgage using the home price, down payment, annual interest rate and repayment term. It also shows the total interest and total amount paid over the selected period.
The estimate assumes a fixed interest rate and regular monthly payments. It does not include property taxes, homeowners insurance, mortgage insurance, maintenance, closing costs or lender-specific fees. Your actual housing costs may therefore be higher than the calculated payment.
To compare mortgage options, change one input at a time while keeping the other values constant. This helps you see how the amount borrowed, interest rate and repayment period affect the monthly payment and total borrowing cost.
Mortgage Payment Formula
A standard fixed-rate mortgage payment is calculated from the loan principal, monthly interest rate and total number of monthly payments.
The formula for a loan with a non-zero interest rate is:
M = P × [r(1 + r)n] / [(1 + r)n − 1]
In this formula, M is the monthly payment, P is the loan principal, r is the monthly interest rate and n is the total number of monthly payments.
The annual interest rate is divided by 12 to obtain the monthly rate. When the interest rate is 0%, the calculation instead divides the loan amount evenly across all monthly payments.
What Determines Your Mortgage Cost?
Home price and down payment
The loan amount is calculated by subtracting the down payment from the home price. For example, a $300,000 home with a $60,000 down payment results in a $240,000 mortgage before any additional costs. A larger down payment generally means borrowing less.
Interest rate
The interest rate determines how much you pay to borrow money. For the same loan amount and repayment term, a higher interest rate generally increases both the monthly payment and the total interest paid over the life of the mortgage.
Repayment term
A longer repayment term generally reduces the required monthly payment but keeps the debt outstanding for longer, which can increase total interest costs. A shorter term usually means higher monthly payments but less time paying interest.
How to Compare Mortgage Scenarios
Start with the same home price and compare two different down payments. Observe how borrowing less affects the monthly payment, total interest and total amount paid.
Next, keep the loan amount and term unchanged and compare different interest rates. Finally, compare shorter and longer repayment terms to understand the trade-off between the required monthly payment and the overall cost of borrowing.
The amortization table and repayment chart provide additional detail: the table shows yearly principal and interest payments, while the chart illustrates how the outstanding balance changes as the mortgage is repaid.
These comparisons are estimates based on the inputs entered. They do not represent a mortgage offer or include additional housing costs such as taxes, insurance or maintenance.
30-Year Mortgage Calculator Example
Suppose you purchase a $300,000 home with a $60,000 down payment. The estimated mortgage loan is $240,000.
At an assumed annual interest rate of 6% over 30 years, the estimated monthly principal and interest payment is approximately $1,438.92.
Over 360 monthly payments, the estimated total amount paid is approximately $518,011.65, including approximately $278,011.65 in interest. The totals use the unrounded monthly payment in the calculation, so multiplying the displayed rounded payment by 360 may give a slightly different result.
This example is hypothetical and includes principal and interest only. Actual mortgage costs depend on the lender's terms and may include fees, property taxes, insurance and other expenses.
Frequently Asked Questions
How is the monthly mortgage payment calculated?
This calculator estimates a fixed monthly principal and interest payment using the loan amount, annual interest rate and repayment term. The loan amount is calculated by subtracting your down payment from the home price. The estimate assumes regular monthly payments and that the interest rate remains constant throughout the loan term.
What is the difference between the loan amount and total amount paid?
The loan amount is the money borrowed to purchase the home. The total amount paid is the sum of all estimated monthly mortgage payments over the selected term. The difference between these amounts represents the total interest paid under the assumptions used by the calculator.
How does a larger down payment affect my mortgage?
A larger down payment reduces the amount you need to borrow. If the interest rate and repayment term remain unchanged, borrowing less generally reduces both the monthly principal and interest payment and the total interest paid over the loan. You can compare different down payments by changing the value in the calculator.
What does the mortgage amortization table show?
The annual amortization table shows how much principal you repay and how much interest you pay during each year. It also displays the remaining loan balance at the end of that year. Early in a typical repayment schedule, a larger share of each payment goes toward interest; as the balance decreases, more of the payment goes toward principal.
How should I read the mortgage repayment chart?
The chart compares three amounts over the loan term: the remaining mortgage balance, cumulative principal repaid and cumulative interest paid. The remaining balance should decrease toward zero, while the cumulative principal and interest amounts generally increase as payments are made. Comparing these lines helps show how the borrowed amount is repaid over time.
Does this mortgage calculator include property taxes or insurance?
No. The estimated monthly payment includes principal and interest only. Property taxes, homeowners insurance, mortgage insurance, maintenance, closing costs and lender-specific fees are excluded. Your actual monthly housing expenses may therefore be higher than the payment shown here.
Is a 30-year mortgage cheaper than a 15-year mortgage?
A 30-year mortgage generally has a lower required monthly payment than a 15-year mortgage for the same loan amount and interest rate. However, the longer term usually results in more total interest paid because the debt remains outstanding for longer. Comparing both terms can help you understand the trade-off between monthly affordability and total borrowing cost.
What happens if the annual interest rate is 0%?
When the interest rate is 0%, this calculator divides the loan amount evenly across the monthly payments. For example, a $240,000 loan over 30 years would have a monthly principal payment of approximately $666.67, with no interest charged in the calculation.
How much house can I afford?
This calculator estimates payments for a home price and loan amount you enter, but it does not assess your personal affordability. Your income, existing debts, regular expenses, savings and other housing costs also matter.
Use our Mortgage Affordability Calculator to estimate a potential home budget using income and expense assumptions.
Are the mortgage calculator results guaranteed?
No. The results are estimates based on the home price, down payment, interest rate and loan term entered. Actual mortgage offers may differ because of lender terms, fees, taxes, insurance and other costs. The calculator is for informational purposes and does not replace a personalised mortgage offer.
More Financial Calculators
Explore our other free financial calculators to compare different saving, investing, mortgage and personal finance scenarios.
Mortgage Affordability Calculator — estimate a potential home budget based on income, expenses and mortgage assumptions.
Investment Calculator — estimate how an initial investment and regular contributions could grow over time.
Compound Interest Calculator — explore how compound growth could affect an investment over time.
Savings Calculator — estimate how regular contributions and interest could affect your future savings balance.
Net Worth Calculator — calculate your current net worth by comparing assets and liabilities.
Loan Calculator — estimate monthly loan payments, total interest and total borrowing cost.
View all financial calculators — explore the complete collection of free financial tools.
Mortgage Calculator Disclaimer
This mortgage calculator is provided for educational and informational purposes only. It does not constitute financial, mortgage, tax or legal advice.
Actual mortgage payments and total borrowing costs may differ because of interest rates, lender fees, taxes, insurance, mortgage insurance and other expenses.