Mortgage Calculator

Calculate monthly mortgage payments, total interest paid, and LTV ratio with our free mortgage calculator. Compare 15-year vs 30-year terms, estimate PMI costs, and plan your home purchase budget.

%
$70,000
%
Monthly Payment
$1,770
Loan Amount$280,000
Total Interest$357,125
Total Payment$637,125
Loan-to-Value (LTV)80.0%
Payment Breakdown
Principal (44%)Interest (56%)

How to Calculate Your Mortgage Payments

  1. 1

    Enter your home price and down payment

    Start by entering the purchase price of the home you are considering. Then specify your down payment as a dollar amount or percentage. A higher down payment reduces your loan amount and may help you avoid PMI if you put down 20% or more.
  2. 2

    Set your interest rate and loan term

    Enter the annual interest rate offered by your lender. Then select a loan term, typically 15 or 30 years. Shorter terms have higher monthly payments but save significantly on total interest paid over the life of the loan.
  3. 3

    Review your monthly payment breakdown

    The calculator instantly shows your estimated monthly payment split between principal and interest. It also displays total interest paid over the full loan term, total payment amount, and your loan-to-value ratio.
  4. 4

    Compare different scenarios

    Adjust the inputs to compare different down payment amounts, interest rates, and loan terms side by side. This helps you find the optimal balance between affordable monthly payments and minimizing total interest costs.

Common Use Cases

1

First-Time Homebuyers

Estimate monthly payments across different price ranges and down payment levels to find a comfortable budget. Compare the impact of FHA loans (3.5% down) versus conventional loans (5-20% down) on your monthly costs and total interest.
2

Refinancing Your Current Mortgage

Compare your existing mortgage payment with potential new terms. Enter different interest rates and loan terms to see how much you could save each month and over the remaining life of the loan.
3

Comparing Loan Offers

When shopping among multiple lenders, use the calculator to compare offers with different interest rates and terms. Even a 0.25% rate difference on a $400,000 loan can mean thousands of dollars in savings over 30 years.
4

Planning Extra Payments

Calculate your baseline monthly payment and determine how much extra you can contribute each month. Even small additional principal payments can shave years off your mortgage and save substantial interest.

Why use a Mortgage Calculator?

Before buying a home, it's essential to understand your monthly costs. This calculator shows your expected mortgage payment based on home price, down payment, interest rate, and loan term. Use it to plan your budget and compare different scenarios.

A mortgage calculator is an essential tool for anyone planning to buy a home, refinance an existing loan, or simply explore how different loan terms affect monthly costs. By entering your home price, down payment, interest rate, and loan term, you get an instant breakdown of your monthly principal and interest payment, total interest paid over the life of the loan, and your loan-to-value (LTV) ratio. Understanding these numbers is the first step toward making a confident, well-informed home purchase decision.

Mortgage amortization determines how your payment is split between principal and interest each month. In the early years, most of your payment goes toward interest. As you pay down the balance, a larger share goes to principal. This is why extra principal payments early in the loan term have the biggest impact on reducing total interest. If your down payment is less than 20%, you will likely pay private mortgage insurance (PMI), which adds 0.5% to 1.5% of the loan amount per year until you reach 80% LTV. Use our amortization calculator to see a full payment schedule and our down payment calculator to plan your upfront costs.

Beyond the basic payment, consider how your mortgage fits into your overall financial picture. Compare different scenarios with our home affordability calculator to find a price range that matches your income, or use the refinance calculator if you are evaluating new terms on an existing loan. For a broader view of your debt management, the debt payoff calculator can help you prioritize payments across all your obligations.

How It Compares

Unlike mortgage calculators from banks and lenders, this tool runs entirely in your browser with no data sent to any server. Bank calculators often require you to create an account, submit personal financial details, or sit through a sales pitch before showing results. Our calculator gives you instant, accurate estimates with complete privacy. There is no signup, no email required, and no lender will contact you after using it.

This also means you can freely experiment with different scenarios without worrying about triggering hard credit inquiries or being added to marketing lists. Compare as many combinations of home prices, rates, and terms as you need to make a confident decision on your own timeline.

Mortgage Tips & Best Practices

1
Get pre-approved before house hunting. Pre-approval shows sellers you are a serious buyer and gives you a realistic budget based on your financial profile, not just an estimate.
2
Compare at least three to five lender offers. Interest rates, fees, and closing costs vary significantly between lenders. Even a small rate difference compounds into major savings over a 30-year term.
3
Keep your total housing costs below 28% of your gross monthly income. This includes principal, interest, taxes, insurance, and any HOA fees. Stretching beyond this ratio increases your risk of financial stress.
4
Consider making biweekly payments instead of monthly. By paying half your monthly amount every two weeks, you make 26 half-payments per year, which equals 13 full monthly payments. This extra payment each year can shorten a 30-year mortgage by four to five years.
5
Build an emergency fund of three to six months of housing costs before buying. Unexpected repairs, job changes, or rate adjustments on variable mortgages can strain your budget if you do not have a financial cushion.

Frequently Asked Questions

1

What is a good down payment percentage?

Traditionally, 20% is considered ideal as it avoids private mortgage insurance (PMI). However, many buyers put down 5-15%. A larger down payment means lower monthly payments and less interest paid over time.
2

How does the loan term affect my payment?

A longer term (30 years) results in lower monthly payments but more total interest paid. A shorter term (15 years) means higher monthly payments but significantly less total interest and faster equity building.
3

What is Loan-to-Value (LTV) ratio?

LTV is the ratio of your loan amount to the home's value. For example, if you put 20% down, your LTV is 80%. Lower LTV ratios often qualify for better interest rates and may avoid PMI requirements.
4

Are property taxes and insurance included?

This calculator shows principal and interest only. Your actual monthly payment may include property taxes, homeowner's insurance, and potentially PMI or HOA fees.
5

How can I lower my monthly payment?

You can lower payments by: making a larger down payment, choosing a longer loan term, shopping for a lower interest rate, or buying a less expensive home.

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