Finance

Mortgage Calculator

Estimate your fixed-rate monthly mortgage payment and see the total interest and total amount repaid over the full term.

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Enter your loan amount, rate, and loan term.

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Mortgage Formula

M = P x r x (1 + r)^n / ((1 + r)^n - 1)

Where M is the monthly payment, P is principal, r is the monthly interest rate, and n is the total number of monthly payments.

What is a mortgage payment?

A mortgage payment is the recurring amount you pay to repay a home loan. In a standard fixed-rate mortgage, the monthly payment stays constant while the share going to interest gradually falls and the share going to principal gradually rises.

Mortgage calculations are useful when comparing loan sizes, rates, and terms before you buy or refinance. Small changes in rate or term can materially change both the monthly payment and total lifetime interest.

Frequently asked questions

How is a mortgage payment calculated?
A fixed-rate mortgage payment is based on the loan amount, interest rate, and repayment term. The formula spreads repayment across equal monthly installments.
Does this include taxes and insurance?
No. This version calculates principal and interest only. Property taxes, homeowners insurance, HOA fees, and PMI are not included and must be budgeted separately.
Why does total interest get so large on long terms?
Longer repayment terms reduce the monthly payment but increase the number of months interest accrues, which raises total interest paid.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has a higher monthly payment but significantly lower total interest and builds equity faster. A 30-year mortgage offers a lower monthly payment and more cash flow flexibility. The right choice depends on your income stability, other financial goals, and how long you plan to stay in the property.
How does making extra principal payments affect total interest?
Extra principal payments reduce the outstanding loan balance, which means less interest accrues in subsequent months. Even one additional payment per year can shave several years off a 30-year mortgage and save tens of thousands of dollars in total interest paid.

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