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Estimate your monthly mortgage payment, total interest and total cost from the home price, down payment, interest rate and loan term.
How the calculation works
The calculator subtracts your down payment from the home price to get the loan amount. It then converts the yearly rate to a monthly rate and spreads the loan over every month of the term, so each payment covers interest and part of the principal. It does not include property tax, insurance or fees.
Formula used
M = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P = loan amount, r = annual rate ÷ 12 ÷ 100, n = years × 12
Example
A $300,000 home with 20% down ($60,000), a 6.5% rate and a 30-year term gives a $240,000 loan, a monthly payment of $1,516.96 and about $306,107 in total interest.
Frequently asked questions
Does the result include taxes and insurance?
No. It shows principal and interest only. Property tax, home insurance and any HOA fees are extra.
How does a larger down payment help?
It lowers the loan amount, which lowers both the monthly payment and the total interest paid.
Is a shorter term better?
A shorter term means a higher monthly payment but much less total interest.
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Results are estimates for general information only and are not professional financial, medical or legal advice.