Use this free mortgage calculator to estimate the monthly principal and interest payment on a fixed-rate home loan.
How the Mortgage Calculator Works
The calculator first subtracts your down payment from the home price to determine the amount borrowed. It then uses the standard fixed-rate mortgage formula to estimate the monthly principal and interest payment.
Mortgage Payment Formula
The monthly payment is calculated using:
M = P × [r(1+r)n] ÷ [(1+r)n − 1]
Where P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments.
Example
For a $350,000 home with a $70,000 down payment, the loan principal is $280,000. Enter the interest rate and loan term above to estimate the monthly principal and interest payment.
What Is Not Included?
This estimate includes principal and interest only. Your actual housing payment may also include property taxes, homeowners insurance, mortgage insurance, homeowners association fees and other costs.
A mortgage is a loan used to purchase a home.
Your monthly mortgage payment depends on the
loan amount, interest rate, and repayment term.
Understanding these factors can help you
evaluate affordability before buying a home.
Example Mortgage Calculation
Suppose you borrow $300,000 at a fixed annual
interest rate of 6% for 30 years.
Your estimated monthly principal and interest
payment would be approximately $1,798.65.
This excludes property taxes, homeowners
insurance, mortgage insurance, and other costs.
How Is a Mortgage Payment Calculated?
For a standard fixed-rate, fully amortizing loan,
the monthly payment is calculated using the
principal, monthly interest rate, and total
number of monthly payments.
A longer repayment period generally reduces
monthly payments but increases total interest.
Frequently Asked Questions
Does a larger down payment reduce my mortgage?
Yes. A larger down payment reduces the amount
borrowed and generally lowers monthly payments.
Does this estimate include property taxes?
The example above covers principal and interest
only. Your actual housing payment may also
include taxes, insurance, and other charges.
Can I pay off my mortgage early?
Many mortgages allow additional principal
payments. Check your loan agreement for
any applicable prepayment restrictions.