The mortgage payment calculator estimates your monthly payment based on your loan amount, interest rate, and loan term. Use it to compare different mortgage scenarios, understand how much house you can afford, or see how a larger down payment reduces your monthly obligation.
How to Use the Mortgage Calculator
- Enter the loan amount (home price minus your down payment).
- Enter the annual interest rate from your lender’s quote.
- Set the loan term — typically 15 or 30 years.
- See your monthly payment, total interest paid, and total cost instantly.
Mortgage Payment Formula
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Where: P = principal, r = monthly rate (annual rate ÷ 12), n = total payments (years × 12).
Frequently Asked Questions
Does this include taxes and insurance?
No — this calculator shows principal and interest only (P&I). Your actual monthly payment will be higher once you add property taxes, homeowner’s insurance, and PMI (if your down payment is under 20%). Lenders call the full amount PITI — Principal, Interest, Taxes, and Insurance.
What’s the difference between a 15-year and 30-year mortgage?
A 30-year mortgage has lower monthly payments but you pay significantly more interest over the life of the loan. A 15-year mortgage has higher monthly payments but you build equity faster and pay far less total interest — often 50–60% less.
How does my credit score affect my mortgage rate?
Your credit score is one of the biggest factors in the rate you’re offered. A score above 760 typically qualifies for the best rates. A score below 620 may make it difficult to qualify at all or result in rates 1–2% higher, which adds tens of thousands in total cost.
Should I choose a fixed or variable rate mortgage?
A fixed rate stays the same for the loan term — predictable and safe if rates rise. A variable (ARM) rate starts lower but can increase after an initial fixed period. Fixed rates are better for long-term stability; ARMs can work if you plan to sell or refinance within 5–7 years.
How much of a mortgage can I afford?
A common guideline is that your housing costs (PITI) should not exceed 28% of your gross monthly income, and total debt payments should stay under 36%. These are the “28/36 rule” thresholds most lenders use when approving mortgages.