How is a mortgage payment calculated?

The fixed monthly payment is calculated from the loan amount, interest rate, and loan term using the amortization formula.

What is a good loan term?

A 30-year term has lower monthly payments but more total interest, while a 15-year term has higher payments but far less interest.

Mortgage Calculator

Estimate your monthly mortgage payment, total interest, and total cost of the loan.

Loan details

Home price ($)

Down payment ($)

Interest rate (%)

Loan term (years)

How mortgage payments work

A mortgage payment has two parts: principal (paying down the loan) and interest. Early payments are mostly interest; later payments are mostly principal.

A 30-year term keeps monthly payments lower but costs more in total interest. A 15-year term raises the monthly payment but can save tens of thousands of dollars over the life of the loan.

Frequently asked questions

Does this include property tax and insurance?

No. This calculator shows principal and interest only. Property taxes, homeowners insurance, and PMI are extra and depend on your location and lender.

What interest rate should I enter?

Use the annual percentage rate (APR) quoted by your lender, which includes some loan costs.