Free Mortgage Calculator

Your monthly mortgage payment is calculated using the standard amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1]. Here, P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). Our calculator performs this computation instantly as you type.

Most financial experts recommend a down payment of at least 20% of the home's purchase price. This avoids Private Mortgage Insurance (PMI), which typically costs 0.5%–1.5% of the loan amount per year. However, many loan programs allow down payments as low as 3%–5% for qualified buyers.

A 15-year mortgage saves a significant amount on total interest (often 40–50% less) but comes with higher monthly payments. A 30-year mortgage offers lower monthly payments and more cash flow flexibility. Use our calculator to compare both options and see the exact difference for your loan amount.

Our calculator shows principal and interest (P&I) only. Your actual monthly payment to the lender will typically also include property taxes (escrow), homeowners insurance, and PMI if your down payment is under 20%. Add roughly 20–30% to the calculated amount to estimate your total monthly housing cost.

An amortization schedule is a table showing every payment over the life of your loan. It breaks down each payment into principal and interest. In the early years of a mortgage, most of your payment goes toward interest. Over time, the proportion shifts until your last payment is almost entirely principal.