Calculate your monthly mortgage payments, total interest, and view detailed amortization schedules
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $30,339.24 | $3,967.24 | $26,372.00 | $396,032.76 |
| Year 2 | $30,339.24 | $4,266.08 | $26,073.16 | $391,766.68 |
Buying a home is one of the largest financial decisions most people make. A mortgage shapes your monthly budget, long-term wealth, and financial flexibility. Our Mortgage Calculator helps you model monthly payments, amortization schedules, the effect of different rates and terms, and the real cost of mortgage features like PMI, taxes, and insurance. This guide explains how mortgage math works, how to compare offers using APR, when refinancing makes sense, and practical strategies to pay down your mortgage faster without sacrificing financial resilience.
A mortgage calculator turns fearful guesswork into an evidence-based plan. Use it to:
To get accurate results, gather: desired loan amount, interest rate (fixed or initial rate for ARMs), term (years), expected property taxes, homeowners insurance, and whether mortgage insurance (PMI) applies.
Compare loans by APR (not just headline rate), and always look at the amortization schedule and total cost over the term to spot long-term differences.
The standard equal-payment mortgage uses the same monthly payment each month. The formula is:
Payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)Where P is loan principal, r is monthly interest rate (annual rate ÷ 12), and n is total monthly payments (years × 12). The mortgage calculator computes this instantly and builds the full amortization table so you can see how interest dominates early payments and principal gains momentum later.
An amortization schedule lists every payment with three important columns: interest portion, principal portion, and remaining balance. Early in a long-term mortgage (like a 30-year loan) a large share of each payment pays interest. Over time the interest portion declines and the principal portion grows, which accelerates equity building. Viewing the full schedule helps you:
Down payment size directly reduces your loan principal. It also influences whether you need Private Mortgage Insurance (PMI) — typically required if your down payment is less than 20% on conventional loans. PMI protects the lender, not you, and adds to monthly cost. The mortgage calculator can include PMI and show how increasing your down payment reduces monthly payments and eliminates PMI sooner.
Fixed-rate mortgages keep the same interest rate for the loan’s life, offering predictability. ARMs start with a lower initial rate for a period (e.g., 5 years in a 5/1 ARM) and then adjust periodically based on an index plus margin. ARMs may be attractive if you plan to sell or refinance before rates adjust, but they carry risk if rates rise. Use the calculator to compare a fixed 30-year rate vs. a 5/1 ARM—modeling possible future rate scenarios helps you weigh risk vs savings.
The interest rate determines monthly payments; APR converts interest plus certain fees to an annualized rate to help compare offers. When lenders charge underwriting fees, points, or high closing costs, a loan with a slightly lower interest rate but higher fees may have a worse APR. Use APR when comparing overall cost, and monthly payment when confirming affordability.
Your mortgage payment often includes more than principal and interest. Property taxes and homeowners insurance are commonly collected through an escrow account and added to your monthly payment. If escrow is included, your payment = principal & interest + monthly tax escrow + monthly insurance escrow + any PMI. The mortgage calculator can show both the base mortgage payment and the fully loaded payment including escrow items so you don’t get surprised at closing.
In many jurisdictions mortgage interest is tax-deductible under certain limits; consult a tax advisor for your situation. Deductibility changes the after-tax cost of borrowing and can influence whether you prioritize mortgage prepayment versus other investments. The calculator can help you see pre-tax and rough after-tax interest costs (if you enter an estimated marginal tax rate) to inform planning.
Refinancing replaces your existing mortgage with a new loan—often to lower the rate, shorten or lengthen the term, or take cash out of home equity. Consider refinancing when:
Use the mortgage calculator to compare current loan vs refinance proposals and compute break-even time (months until cumulative savings equal closing costs). If you plan to sell the house before the break-even date, refinancing may not be worthwhile.
Reducing total interest paid and shortening your mortgage term can be achieved without extreme sacrifices:
On a $300,000 30-year mortgage at 4%: a $200 monthly extra payment can shorten the loan by several years and save tens of thousands in interest. The mortgage calculator breaks this down month by month so you can choose realistic extra-payment amounts.
Accelerating mortgage repayment is great—but not at the expense of liquidity. Maintain an emergency fund (3–6 months of expenses) before applying every spare dollar to a mortgage. Also consider the interplay between mortgage prepayment and other goals: retirement savings (especially employer-matched accounts), higher-interest debt payoff, and investing opportunities.
Mortgage offers can include discount points (pay more upfront to lower the interest rate), lender credits (lower upfront costs in exchange for a slightly higher rate), and prepayment penalties (rare but possible). Points make sense if you plan to keep the loan long enough to recover the upfront cost through lower monthly payments. Always run a break-even analysis in the calculator to test whether points, credits, or penalties align with your horizon.
Buying includes the mortgage payment but also property taxes, insurance, maintenance, and opportunity cost of the down payment. Renting removes maintenance responsibility but provides less opportunity to build home equity. Use the mortgage calculator to compute prospective monthly costs and total interest, then layer in estimated maintenance, tax benefits, expected home appreciation, and alternative investment returns to build a full buy vs rent model.
It’s based on principal, interest rate, and term using the standard EMI formula. If escrow is included, property tax and insurance add to the payment. The mortgage calculator produces the exact monthly amount and the amortization breakdown.
APR annualizes interest and certain fees so you can compare overall loan costs. Use APR when comparing offers that have different fees or points to make an apples-to-apples decision.
A 15-year mortgage typically has a lower interest rate and significantly less total interest but higher monthly payments. Choose 15 years if you can afford higher payments and want to pay less interest; choose 30 years for lower monthly payments and greater cash-flow flexibility.
Refinancing often makes sense when the new rate and terms reduce your total cost enough to cover closing costs within your planned ownership horizon. Use break-even analysis in the calculator to confirm.
Even modest extras (e.g., 5–10% of the monthly payment) reduce term and interest substantially over decades. Use the mortgage calculator to test $X/month extra and view exact months saved and interest avoided.
Use our Mortgage Calculator to explore payments, amortization, refinancing scenarios, and strategies to pay your home off faster while keeping financial flexibility.
Learn more: Mortgage Tips • Compound Interest Guide