Mortgage Calculator

Work out your monthly mortgage payment, the total interest you will pay and how the balance falls each year.

How to use the Mortgage Calculator

  1. Enter the home price and your down payment.
  2. Enter the annual interest rate and the loan term in years.
  3. Optionally add yearly property tax and insurance, then open the amortization schedule to see the balance year by year.

The mortgage payment formula

M = P × r ÷ (1 − (1 + r)−n)

P is the loan amount (price minus down payment), r is the monthly interest rate (annual rate ÷ 12) and n is the number of monthly payments. For a 240,000 loan at 6.5% over 30 years, r = 0.065 ÷ 12 and n = 360, which gives a payment of about 1,516.96 per month.

How amortization works

Every payment is split between interest and principal. Early on, most of the payment is interest because the balance is high; over time, more goes to principal. Extra payments early in the loan save the most interest.

What the payment does not include

Lenders may also collect mortgage insurance, homeowner association fees and closing costs. Property tax and home insurance are added here only if you enter them.

Results are estimates for planning. They are not financial advice and do not include every fee a lender or provider may charge.

Frequently asked questions

How is a monthly mortgage payment calculated?

It uses the loan amount, the monthly interest rate and the number of payments in the standard amortization formula: M = P × r ÷ (1 − (1 + r)^−n).

How much down payment do I need?

It depends on the lender and country. In many markets 20% avoids mortgage insurance, while some loans accept 3–10%.

Does a shorter term save money?

Yes. A 15-year loan has higher monthly payments than a 30-year loan but much less total interest, and usually a lower rate.

What is an amortization schedule?

A table showing how much of each payment goes to interest and to principal, and the remaining balance over time.

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