Mortgage Calculator
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| Loan Amount | ||
|---|---|---|
| Monthly Payment | ||
| Total Interest | ||
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Free Mortgage Calculator — Know Your Monthly Payment Before You Talk to a Lender
Buying a home is the largest financial decision most people ever make, and the single most important number in that decision is the monthly payment. This free mortgage calculator computes your exact monthly principal-and-interest payment using the same amortization formula banks use, so you can test prices, rates, down payments, and loan terms before a lender ever runs your credit. Everything runs instantly in your browser — no signup, no email, no fees.
How the Mortgage Payment Formula Works
Fixed-rate mortgage payments are calculated with the standard amortization formula:
M = P × [ r(1 + r)n ] ÷ [ (1 + r)n − 1 ]
- M — the monthly payment
- P — the principal (home price minus down payment)
- r — the monthly interest rate (annual rate divided by 12)
- n — the total number of payments (loan years × 12)
For example, a $350,000 loan at 6.5% for 30 years produces r = 0.065 ÷ 12 = 0.005417 and n = 360, giving a monthly principal-and-interest payment of about $2,212. Over the full term you would pay roughly $446,000 in interest — more than the original loan itself. Seeing that total is exactly why running the numbers first matters.
Principal vs. Interest: Where Your Money Actually Goes
Amortized loans front-load interest. In year one of a 30-year loan at 6.5%, roughly 80% of each payment is interest and only 20% reduces your balance. The split slowly flips over the life of the loan; by year 22, more than half of each payment finally goes to principal. This is why extra principal payments early in the loan are so powerful — every dollar of principal you eliminate stops compounding interest for decades.
PITI: The Real Monthly Cost of Owning
Lenders qualify you on the full housing payment, not just principal and interest. The complete picture — often abbreviated PITI — includes:
| Component | Typical range |
|---|---|
| Principal & Interest | Set by loan amount, rate, and term |
| Property Taxes | 0.3% – 2.2% of home value per year, by state |
| Homeowners Insurance | $1,000 – $3,000+ per year |
| PMI (if down payment < 20%) | 0.3% – 1.5% of loan per year |
| HOA fees (if applicable) | $100 – $700+ per month |
A payment that looks affordable as principal-and-interest alone can grow 25–40% once taxes and insurance are added, so budget on the full PITI number.
15-Year vs. 30-Year: A Real Comparison
On a $350,000 loan, a 30-year term at 6.5% costs about $2,212/month and ~$446,000 total interest. The same loan on a 15-year term at 5.9% costs about $2,935/month — $723 more per month — but total interest drops to roughly $178,000, a saving of about $268,000. If the higher payment fits comfortably, the shorter term is one of the strongest guaranteed returns available. If it strains the budget, a 30-year loan with voluntary extra principal payments offers similar savings with more flexibility.
Practical Ways to Lower Your Payment
- Increase the down payment — every extra 5% down cuts both the loan size and, at 20%, removes PMI entirely.
- Shop at least three lenders — rate quotes routinely differ by 0.25–0.5%, worth tens of thousands over the term.
- Buy discount points — paying 1% of the loan upfront typically lowers the rate ~0.25%; worthwhile if you'll keep the loan 6+ years.
- Improve your credit score — moving from the 680s to 760+ often improves the rate by 0.5% or more.
Why Use This Mortgage Calculator
It is completely free with no account required, computes results instantly as you type, uses the exact bank-standard amortization math, and never stores or transmits your financial inputs — all calculation happens locally in your browser. Test as many scenarios as you like: different prices, rates, terms, and down payments, until the monthly number fits your life.