Mortgage Calculator
Enter the home price, down payment, interest rate, and loan term to calculate your estimated monthly mortgage payment and total interest over the life of the loan.
Monthly Payment
$1,862.85
Loan Amount
$280,000
Total Repayment
$670,625
Total Interest
$390,625
Educational tool only.Results are informational estimates for principal and interest only. Your actual monthly payment will also include property taxes, homeowner's insurance, and possibly PMI and HOA fees. This calculator does not constitute financial advice. Consult a qualified mortgage lender for accurate figures.
Understanding Your Mortgage Payment
A standard fixed-rate mortgage uses the same amortization formula as other installment loans: each monthly payment covers that month's interest plus some principal. In the early years of a mortgage, the vast majority of each payment goes to interest. Over time, the principal portion grows and the interest portion shrinks.
Example: $280,000 Loan at 7% for 30 Years
Monthly payment ≈ $1,863 Year 1: ~$1,633 interest / $230 principal per month Year 15: ~$1,139 interest / $724 principal per month Year 30: ~$13 interest / $1,850 principal per month Total interest over 30 years ≈ $390,664 Total paid: $670,664 → 15-year version at 6.5%: Monthly payment ≈ $2,440 Total interest ≈ $159,196 (savings: ~$231,000)
FAQ
What is PMI and when does it apply?
PMI (Private Mortgage Insurance) is typically required when the down payment is less than 20% of the home price. It protects the lender if you default. PMI typically costs 0.5–1% of the loan amount per year, added to your monthly payment. It can usually be canceled once you reach 20% equity.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage has lower monthly payments but far more total interest paid. A 15-year mortgage has higher payments but you build equity faster and pay much less interest overall. The right choice depends on your cash flow, other financial goals, and how long you plan to stay in the home.
What costs are not included in this calculator?
This calculator shows only principal and interest. Your actual monthly housing cost also includes: property taxes (typically 1–2% of home value per year), homeowner's insurance (~$1,000–$2,000/year), PMI if applicable, and HOA fees if applicable. These can add $500–$1,000+ to the payment shown here.
Want the full explanation? Read the Mortgage Payment Formula Guide →