Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and total cost based on home price, down payment, loan term, and interest rate.
Monthly Payment
$1,516.96
Total Interest
$306,106.77
Total Cost
$546,106.77
Loan Amount: $240,000.00
How It Works
This calculator determines your monthly mortgage payment using the standard amortization formula:
M = P × r(1+r)n / ((1+r)n − 1)
- P — Loan amount (home price minus down payment)
- r — Monthly interest rate (annual rate / 12)
- n — Total number of monthly payments (years × 12)
Total cost is the monthly payment multiplied by the number of payments, and total interest is the total cost minus the original loan amount.
Frequently Asked Questions
How is a monthly 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 loan amount, r is the monthly interest rate, and n is the total number of payments. This formula accounts for both principal and interest in each payment.
How much should my down payment be?
A common guideline is 20% of the home price, which helps you avoid private mortgage insurance (PMI). However, many loan programs allow down payments as low as 3-5%. A larger down payment means a smaller loan and lower monthly payments.
Does this calculator include taxes and insurance?
This calculator estimates principal and interest only. Your actual monthly payment may also include property taxes, homeowner's insurance, and PMI, which can add several hundred dollars per month.