🏡 Mortgage Calculator
Calculate your monthly mortgage payment and full amortization schedule.
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What Is a Mortgage Calculator?
A mortgage calculator estimates your monthly home loan payment based on the home price, down payment amount, annual interest rate, and loan term. For most households, a mortgage is the largest financial commitment they will ever make — and yet most buyers spend more time researching which neighborhood to live in than understanding the total cost of their financing. This calculator changes that: enter four numbers and instantly see not just your monthly payment, but the total interest you will pay over the entire loan, how much of your money goes toward principal versus interest, and a year-by-year payoff schedule.
The visual breakdown is particularly important. On a $400,000 home purchased with 20% down ($80,000) at 6.5% over 30 years, your monthly payment is approximately $2,023. But by the end of the loan, you will have paid roughly $408,000 in total interest — more than the original home price. The pie chart makes this relationship visceral in a way that a single payment number cannot.
This calculator supports USD, GBP, and AUD and generates a full yearly amortization schedule showing principal paid, interest paid, and remaining balance for every year of the loan.
How to Use the Mortgage Calculator
- Select currency — choose USD, GBP, or AUD depending on where you are buying.
- Enter the home price — the full purchase price of the property, not the loan amount.
- Enter your down payment — the amount you are paying upfront. The percentage display next to the field updates live as you type. A 20% down payment avoids PMI (private mortgage insurance) on US loans.
- Enter the annual interest rate — use the rate quoted in your mortgage offer or current average rates from lenders in your area. Current 30-year fixed mortgage rates in the US typically range from 6% to 8%.
- Select the loan term — choose 10, 15, 20, 25, or 30 years. Shorter terms mean higher monthly payments but dramatically less total interest.
- Click Calculate Mortgage — your monthly payment, total interest, total amount paid, and loan amount display immediately, followed by the cost breakdown chart and yearly amortization table.
Why Run Mortgage Numbers Before House Hunting?
Real estate agents and mortgage brokers typically tell you the maximum you qualify for — not the amount that keeps your finances comfortable. The widely cited rule is that housing costs should not exceed 28–30% of gross monthly income. This calculator lets you work backward: enter what you can comfortably afford monthly, and adjust the home price and down payment until the numbers fit your budget rather than a lender's maximum.
The 15-year versus 30-year comparison is especially eye-opening. On a $300,000 loan at 6.5%, a 30-year mortgage costs $1,896/month but $382,560 in total interest. A 15-year mortgage costs $2,613/month but only $170,340 in total interest — a savings of over $212,000 for $717 more per month. Running this comparison in the calculator takes 30 seconds and can reshape your entire home financing strategy.
Related Tools
- → Loan Calculator — for personal, car, student, and business loans with monthly amortization
- → Retirement Calculator — see how your mortgage payoff timeline aligns with retirement savings
- → Net Worth Calculator — track home equity as part of your overall financial picture
- → Compound Interest Calculator — compare investing your down payment against buying outright
Frequently Asked Questions
Does this calculator include property taxes and insurance?
No — this calculator shows principal and interest (P&I) only, which is the mortgage payment itself. Your actual monthly housing cost also includes property taxes (typically 0.5–2% of home value annually, depending on location), homeowner's insurance (average $1,200–$2,000/year), and PMI if your down payment is below 20%. Add these to your calculated P&I payment to get your true total monthly housing obligation.
What is PMI and when can I drop it?
Private Mortgage Insurance (PMI) is required on conventional US mortgages when the down payment is below 20%. It typically costs 0.5–1.5% of the loan amount annually. Once your home equity reaches 20% (through payments or appreciation), you can request PMI cancellation. Lenders are legally required to automatically cancel PMI when your loan-to-value ratio reaches 78% of the original purchase price.
Is a 15-year or 30-year mortgage better?
It depends on your financial situation. A 15-year mortgage builds equity faster, charges a lower interest rate (typically 0.5–0.75% less than 30-year), and costs dramatically less in total interest. But the higher monthly payment reduces cash flow flexibility. A 30-year mortgage keeps monthly obligations lower, freeing capital for other investments. Many financial advisors recommend the 30-year if the rate difference is small and you will invest the monthly savings difference.
How much of a down payment do I need?
Conventional loans typically require 5–20% down. FHA loans accept as little as 3.5% with a 580+ credit score. VA loans (military) and USDA loans (rural areas) may require 0% down. However, putting down less than 20% means paying PMI, which adds $100–$300/month to most loan payments. Run the calculator with different down payment amounts to see how PMI and interest interact with your total cost.
How does refinancing change my mortgage calculations?
Refinancing replaces your current mortgage with a new loan, ideally at a lower interest rate or shorter term. Use this calculator with your current remaining balance as the "loan amount" and your new rate/term to see your new payment. Compare total interest under both scenarios to determine whether the savings outweigh any refinancing costs (typically $3,000–$6,000 in closing costs for a US refinance).