Professional financial planning tools for mortgages, loans, investments, and retirement planning. Make informed financial decisions with accurate calculations.
Our mortgage calculator uses the standard amortization formula to determine your monthly payment based on the loan amount, interest rate, and loan term. The calculation considers the principal amount (home price minus down payment), converts the annual interest rate to a monthly rate, and factors in the total number of payments over the loan term to provide accurate monthly payment estimates.
Your monthly mortgage payment consists of principal and interest (P&I), but your total housing payment may also include property taxes, homeowners insurance, and private mortgage insurance (PMI) if your down payment is less than 20%. This calculator focuses on the P&I portion, which represents the core loan repayment. The principal portion pays down your loan balance, while the interest portion compensates the lender for the loan risk.
Several key factors influence your monthly mortgage payment. The loan amount is determined by subtracting your down payment from the home price - a larger down payment reduces both your monthly payment and eliminates PMI if it reaches 20%. The interest rate significantly impacts your payment, with even small rate differences resulting in substantial savings or costs over the loan term. The loan term, typically 15 or 30 years, affects both monthly payments and total interest paid.
This mortgage calculator helps you determine affordability before house hunting and compare different loan scenarios. Input various home prices, down payment amounts, and interest rates to see how changes affect your monthly payment. This information helps establish a realistic budget and understand the financial commitment of homeownership. Remember that lenders typically recommend housing costs not exceed 28% of your gross monthly income.
The calculator shows total interest paid over the loan term, which can be substantial. Early in your loan, most of each payment goes toward interest, but over time, more goes toward principal. Making extra principal payments can significantly reduce total interest and shorten your loan term. Even an extra $50 monthly can save thousands in interest and years off your mortgage.