Free Mortgage Calculator
Calculate your monthly mortgage payments, see the breakdown of principal and interest, and view a complete amortization schedule.
Mortgage Details
$70,000 (20.0% down)
Estimated Monthly Payment
Loan Amount
$280,000
Total Interest
$357,125
Total Payment
$808,125
Down Payment
20.0%
Mortgage Tips
How to Use the Mortgage Calculator
Enter the Home Price
Start by entering the total price of the home you want to buy. This is the purchase price before your down payment. You can adjust this to compare different price points.
Set Your Down Payment
Enter your down payment amount or percentage. A 20% down payment avoids PMI (Private Mortgage Insurance), but many buyers put down less. The calculator shows how this affects your monthly payment.
Choose Interest Rate and Loan Term
Enter the annual interest rate from your lender quote. Select either a 15-year or 30-year loan term. Shorter terms have higher payments but save significantly on total interest.
Review Your Results
View your estimated monthly payment, total interest over the loan life, and the full amortization schedule. Use this information to compare loan options and plan your home buying budget.
Pro tip: Your data is processed entirely in your browser. Nothing is sent to any server, ensuring complete privacy.
Understanding Mortgage Payments
A mortgage is a loan used to purchase a home, where the property serves as collateral. Understanding how mortgage payments work is crucial for making informed decisions about one of life's biggest financial commitments. Our calculator helps you estimate monthly payments and see exactly where your money goes over the life of the loan.
Key Factors Affecting Your Payment
- Loan Amount: The total amount you borrow (home price minus down payment)
- Interest Rate: The cost of borrowing, expressed as an annual percentage
- Loan Term: The length of time to repay (typically 15 or 30 years)
- Down Payment: The upfront cash you put toward the purchase
- Property Taxes & Insurance: Additional costs often included in monthly payments
Frequently Asked Questions
How is a mortgage payment calculated?
Monthly mortgage payments are calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of payments (loan term in months). This formula accounts for both principal and interest.
What is included in a mortgage payment?
A typical mortgage payment (PITI) includes Principal (paying down the loan balance), Interest (the cost of borrowing), Taxes (property taxes), and Insurance (homeowners insurance). PMI (Private Mortgage Insurance) may also be required if your down payment is less than 20%.
How much should I put down on a house?
While 20% is traditionally recommended to avoid PMI, many buyers put down less. FHA loans require as little as 3.5%, and some conventional loans accept 3% down. However, a larger down payment means lower monthly payments and less interest paid over time.
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but lower interest rates and much less total interest paid. A 30-year mortgage has lower monthly payments but you'll pay more interest over time. Choose based on your budget and financial goals.
What credit score do I need for a mortgage?
Credit score requirements vary by loan type. Conventional loans typically require 620+, FHA loans accept 580+ (or 500 with 10% down), and VA loans have no minimum but lenders often require 620+. Higher scores get better interest rates.
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