Mortgage Calculator - Calculate Monthly Payments & Total Cost
Free online mortgage calculator to calculate monthly payments, total interest, and loan amortization. Perfect for home buying and refinancing decisions.
Mortgage Details
Mortgage Results
Enter mortgage details to calculate payments
About Mortgage Calculator
The Mortgage Calculator helps you calculate monthly mortgage payments using the standard mortgage payment formula.
Formula Used:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- P = Principal loan amount (home price - down payment)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Types of Mortgages:
- Fixed-Rate: Interest rate stays the same throughout the loan
- Adjustable-Rate (ARM): Interest rate can change over time
- FHA Loans: Government-backed loans with lower down payments
- VA Loans: Loans for veterans with no down payment required
Factors Affecting Payments:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Credit score and history
- Property taxes and insurance
Applications:
- Home buying budget planning
- Refinancing decisions
- Comparing mortgage offers
- Understanding total loan costs
Note: This calculator provides estimates. Actual mortgage terms may vary based on creditworthiness, lender policies, property location, and other factors.
Frequently Asked Questions
How do I calculate mortgage payments?
Mortgage payments are calculated using the formula: P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is total payments.
What's included in a mortgage payment?
A typical mortgage payment includes principal, interest, property taxes, and homeowners insurance (PITI). This calculator shows principal and interest only.
How does down payment affect my mortgage?
A larger down payment reduces your loan amount, which lowers your monthly payment and total interest paid over the life of the loan.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus other fees and costs.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but saves significantly on interest. A 30-year mortgage has lower monthly payments but costs more in interest over time.