Mortgage Calculator
Free tool, no sign-up required
Monthly Payment (Total)
$0
Principal & Interest
$0
Monthly Property Tax
$0
Monthly Insurance
$0
Total Interest Paid
$0
Total Payment
$0
Mortgage payment estimates help homebuyers understand what a loan will actually cost per month before they commit, and compare how different loan terms or down payments change that number. It is one of the first calculations anyone shopping for a home loan runs, often before even speaking to a lender.
Formula
Monthly Payment = P x [r(1+r)^n] / [(1+r)^n - 1]
P is your loan principal, the amount borrowed after your down payment. r is your monthly interest rate, the annual rate divided by 12. n is the total number of monthly payments, your loan term in years multiplied by 12. Interest rates change constantly and vary by lender and credit profile, so always use your own quoted rate rather than any number mentioned here.
Example
Example, using an illustrative 6.5% annual rate that will not match your own quote: a $300,000 loan over 30 years works out to roughly $1,896 a month in principal and interest alone, before any property tax or insurance is added on top.
Please Note
A longer loan term lowers your monthly payment by spreading the same debt over more payments, but it increases the total interest paid over the life of the loan, since you are borrowing the money for longer. A shorter term raises the monthly payment but saves substantially on interest overall.
FAQ
Does this include property tax and insurance?
Yes. This calculator has separate inputs for Annual Property Tax and Annual Home Insurance, and its Monthly Payment (Total) figure adds those in, split into monthly amounts, on top of principal and interest. If you only want the loan payment itself, the Principal & Interest figure is broken out separately in the results.
How does loan term affect total interest paid?
A longer term, such as 30 years instead of 15, spreads your principal over more payments, which lowers each individual monthly payment. The tradeoff is that you pay interest for twice as long, so the total interest paid over the life of a 30-year loan is typically much higher than the same loan amount over 15 years, even though the monthly payment is lower.
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