Mortgage Calculator
Use this free mortgage calculator to estimate your monthly payment on a home loan. Enter the loan amount, interest rate and term to instantly see your principal & interest payment, total interest paid and total cost of the loan.
How it works
The calculator uses the standard amortization formula M = P·r(1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12) and n is the total number of monthly payments. Each monthly payment covers interest on the remaining balance plus a principal portion, so the balance decreases to zero over the term.
Frequently asked questions
How is a monthly mortgage payment calculated?
With the amortization formula: M = P·r(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of payments.
Does this include taxes and insurance?
No. This calculator computes principal and interest only. Property taxes, homeowner's insurance and PMI vary by location and should be added separately.
Is a shorter mortgage term better?
A shorter term (e.g. 15 years) means higher monthly payments but dramatically less total interest. Use the calculator to compare terms side by side.