Mortgage Calculator
Calculate your monthly mortgage payment and see the full breakdown
Last updated: January 2025
About This Tool
A mortgage calculator helps you estimate your monthly home loan payments, including principal, interest, taxes, and insurance. Understanding these numbers is essential before buying a home to ensure you can comfortably afford your dream property.
What is Mortgage Calculator?
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. The mortgage calculator computes your monthly payment based on the loan amount, interest rate, and loan term. It also shows the breakdown between principal and interest over time through an amortization schedule.
How It Works
Your monthly mortgage payment is determined by the loan amount, interest rate, and term length. The payment is structured so that each month you pay some interest on the remaining balance plus some principal. Early in the loan, most of your payment goes to interest. Over time, more goes to principal as the balance decreases.
Formula
M = P[r(1+r)^n]/[(1+r)^n-1]
Your Monthly Payment
$2,372.62
Total of $854,142.36 over 30 years
Equity Growth Over Time
Monthly Breakdown
Loan Summary
💡 Smart Tips
- • Put 20% down to avoid PMI
- • A 15-year loan has higher payments but saves thousands in interest
- • Shop around - even 0.25% difference adds up
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When to Use This Calculator
- 1Before house hunting to determine your price range
- 2When comparing different loan terms (15-year vs. 30-year)
- 3To understand how down payment size affects monthly payments
- 4When considering refinancing your existing mortgage
- 5To see how extra payments can shorten your loan term
Pro Tips
- •A 20% down payment eliminates private mortgage insurance (PMI)
- •15-year mortgages have lower rates but higher monthly payments
- •Even small rate differences (0.25%) save thousands over the loan term
- •Consider total cost over loan life, not just monthly payment
- •Factor in property taxes, insurance, and HOA fees for true monthly cost
Common Mistakes to Avoid
- •Only looking at principal and interest, ignoring taxes and insurance
- •Maxing out your approved loan amount instead of staying within budget
- •Not shopping around for the best mortgage rates
- •Forgetting closing costs when budgeting for home purchase
- •Choosing 30-year loans for lower payments without considering total interest