Mortgage Calculator
Calculate your monthly mortgage payment, total interest, and amortization schedule.
About This Tool
The Mortgage Calculator computes your monthly mortgage payment, total interest paid, and full amortization schedule for any home loan. Enter the loan amount, annual interest rate, and loan term in years to get an immediate breakdown of your payment structure.
Formula: Monthly payment = 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 payments (years × 12). In the early months, most of your payment covers interest; as time progresses, more goes toward principal — this shift is called amortization.
How to Use
- Enter the Loan Amount (the price of the home minus any down payment).
- Enter the Annual Interest Rate as a percentage (e.g., 6.5).
- Enter the Loan Term in years (typically 15 or 30).
- Click Calculate to see your monthly payment, total paid, and total interest.
- Click Show Amortization Schedule to view the month-by-month breakdown.
Use Cases
Prospective homebuyers use this tool to compare loan offers from different lenders and understand the long-term cost of a mortgage. Financial advisors share amortization tables with clients to illustrate how extra principal payments can reduce total interest. Real estate investors calculate the monthly carrying cost of a rental property before deciding whether to purchase.
FAQ
- Does this include property taxes and insurance? — No. This calculator covers principal and interest only (P&I). Property taxes, homeowner's insurance, and PMI are additional.
- What is an amortization schedule? — A month-by-month table showing how each payment is split between principal and interest, and the remaining balance after each payment.
- How does a 15-year vs 30-year mortgage compare? — A 15-year loan has higher monthly payments but significantly less total interest. A 30-year loan has lower payments but costs more overall.