Mortgage Calculator
Calculate your monthly mortgage payments and see the full amortization schedule
Loan Details
20.0% down payment
Comprehensive Mortgage Guide
How the Mortgage Calculation Works
This mortgage calculator helps you estimate your monthly mortgage payment. Simply enter the home price, your down payment, the interest rate, and the loan term.
The Standard Formula
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Total monthly payment
- P: Principal loan amount
- i: Monthly interest rate (annual rate / 12)
- n: Number of months (years * 12)
Understanding Amortization
Amortization is the process of paying off a debt over time through regular payments. A portion of each payment goes towards interest costs and reducing your loan balance (principal).
In the early years of a mortgage, most of your payment goes toward interest. As time passes, more of your payment goes toward paying down the principal.
Tips for Lowering Payments
- Increase your down payment: Reduces the loan amount and your monthly payment.
- Improve your credit score: Helps you qualify for a lower interest rate.
- Choose a longer loan term: 30-year loans have lower monthly payments than 15-year ones.
Frequently Asked Questions
Does this include property taxes and insurance?
No, this calculator only computes Principal and Interest (P&I). In a real-world scenario, your monthly payment will likely include property taxes, homeowners insurance, and potentially Private Mortgage Insurance (PMI) if your down payment is less than 20%.
What is a "good" down payment in 2026?
While 20% is the traditional gold standard to avoid PMI and secure better rates, many modern programs allow for as little as 3% or 3.5% down (like FHA loans). However, remember that a smaller down payment means a larger loan and more interest paid over time.
How does the loan term affect my total interest?
A 15-year mortgage usually has a lower interest rate than a 30-year one, but more importantly, you pay interest for half as long. This can save you hundreds of thousands of dollars over the life of the loan, though your monthly payments will be significantly higher.
When should I consider refinancing?
Refinancing usually makes sense if you can lower your interest rate by at least 0.75% to 1%. However, you must also consider "break-even" time—how many months it will take for the monthly savings to cover the closing costs of the new loan.
What is Private Mortgage Insurance (PMI)?
PMI is a type of insurance that protects the lender if you stop making payments. It's typically required if your down payment is less than 20% of the home's value. Once you reach 20% equity, you can usually request to have PMI removed.
Comprehensive Mortgage Guide
How the Mortgage Calculation Works
This mortgage calculator helps you estimate your monthly mortgage payment. Simply enter the home price, your down payment, the interest rate, and the loan term.
The Standard Formula
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Total monthly payment
- P: Principal loan amount
- i: Monthly interest rate (annual rate / 12)
- n: Number of months (years * 12)
Understanding Amortization
Amortization is the process of paying off a debt over time through regular payments. A portion of each payment goes towards interest costs and reducing your loan balance (principal).
In the early years of a mortgage, most of your payment goes toward interest. As time passes, more of your payment goes toward paying down the principal.
Tips for Lowering Payments
- Increase your down payment: Reduces the loan amount and your monthly payment.
- Improve your credit score: Helps you qualify for a lower interest rate.
- Choose a longer loan term: 30-year loans have lower monthly payments than 15-year ones.
Frequently Asked Questions
Does this include property taxes and insurance?
No, this calculator only computes Principal and Interest (P&I). In a real-world scenario, your monthly payment will likely include property taxes, homeowners insurance, and potentially Private Mortgage Insurance (PMI) if your down payment is less than 20%.
What is a "good" down payment in 2026?
While 20% is the traditional gold standard to avoid PMI and secure better rates, many modern programs allow for as little as 3% or 3.5% down (like FHA loans). However, remember that a smaller down payment means a larger loan and more interest paid over time.
How does the loan term affect my total interest?
A 15-year mortgage usually has a lower interest rate than a 30-year one, but more importantly, you pay interest for half as long. This can save you hundreds of thousands of dollars over the life of the loan, though your monthly payments will be significantly higher.
When should I consider refinancing?
Refinancing usually makes sense if you can lower your interest rate by at least 0.75% to 1%. However, you must also consider "break-even" time—how many months it will take for the monthly savings to cover the closing costs of the new loan.
What is Private Mortgage Insurance (PMI)?
PMI is a type of insurance that protects the lender if you stop making payments. It's typically required if your down payment is less than 20% of the home's value. Once you reach 20% equity, you can usually request to have PMI removed.