🏠 Mortgage Calculator
Calculate your estimated monthly mortgage payment, total interest paid, and full amortization schedule.
How is Your Mortgage Payment Calculated?
Your monthly mortgage payment is determined by the loan amount (home price minus down payment), your interest rate, and the loan term. The standard formula uses an amortization calculation where each payment covers both principal repayment and interest charges.
A higher down payment reduces your loan amount and eliminates Private Mortgage Insurance (PMI) if you put down 20% or more. Similarly, a shorter loan term means higher monthly payments but significantly less total interest paid over the life of the loan.
Tips to Lower Your Monthly Payment
Consider making a larger down payment, shopping for lower interest rates, or choosing a longer loan term. Even a 0.5% difference in your interest rate can save tens of thousands of dollars over the life of a 30-year mortgage.