Mortgage Calculator

Calculate Your Mortgage

Enter your home loan details

Mortgage Amount ($)

Typically between $100,000 and $2,000,000

Interest Rate (%)

Current market rates: 6.0% - 7.5% (as of 2024)

Loan Term (Years)

Common terms: 15, 20, or 30 years

Monthly Extra Payment ($)

Extra payments go directly toward principal, reducing total interest

Payment Frequency

More frequent payments can reduce total interest

Mortgage Results & Actions

Calculate and view your payment details

Your Mortgage Results

Monthly Payment: $2,212.24

Total Interest Paid: $446,407.40

Payoff Time: 30 years

Total Repayment: $796,407.40

How It Works

Enter mortgage amount, interest rate, loan term, and any extra payments to calculate your monthly payment, total interest, and payoff timeline instantly.

Smart Planning

Compare different loan terms, analyze refinancing options, and see how extra payments can save thousands in interest and shorten your loan term.

Privacy First

All calculations happen in your browser - no personal or financial data is sent to servers. Your information stays completely private.

Mortgage Calculation Formulas

Monthly Payment Calculation

M = P × [i(1+i)^n] / [(1+i)^n - 1]

M = Monthly payment, P = Principal loan amount, i = Monthly interest rate, n = Number of payments

Total Interest Paid

Total Interest = (M × n) - P

M = Monthly payment, n = Number of payments, P = Principal loan amount

Payoff Time with Extra Payments

n = -log(1 - (P × i) / (M + E)) / log(1 + i)

P = Principal, i = Monthly rate, M = Monthly payment, E = Extra payment, log = Natural logarithm

Real-World Mortgage Examples

30-Year Fixed Mortgage

$350,000 loan, 6.5% interest, 30 years → Monthly: $2,212.24

Total cost: $796,407 with $446,407 interest

15-Year Mortgage with Extra Payments

$250,000 at 5.75% with $200 extra monthly → Payoff: 13.4 years

Total savings: $23,450 interest saved

Refinance Analysis

$280,000 balance at 7.5%, refinance to 6.0% with $3,000 costs → Break-even: 11.2 months

5-year savings: $16,104

Understanding Mortgage Calculations

Calculating mortgage payments helps you budget effectively before house hunting. This calculator determines your monthly payment, total interest costs, and payoff timeline based on your loan amount, interest rate, and term. Whether you're buying your first home, refinancing, or planning accelerated payoff, understanding these numbers prevents overborrowing.

How Mortgage Calculations Work

The calculator uses standard amortization formulas to determine how much you'll pay each month and over the life of the loan. It factors in your loan amount, interest rate, and payment frequency to give you a complete picture of your mortgage costs.

Key Factors in Mortgages

Several elements significantly impact your mortgage terms and costs:

Loan Amount: The principal amount you're borrowing
Interest Rate: Determines your borrowing cost, affected by credit score and market conditions
Loan Term: 15, 20, or 30 years - shorter terms mean higher payments but less total interest
Extra Payments: Directly reduce principal and save significant interest over time

Practical Example: First-Time Homebuyer

Scenario: Buying a $285,000 home with 6.75% interest over 30 years

Calculation: Monthly payment = $1,848.32

Total Interest: $380,395 (more than the original loan amount)

Key Insight: Even modest extra payments can save thousands in interest

Frequently Asked Questions

How much difference does a 0.5% lower interest rate make?

On a $400,000 30-year mortgage, lowering from 7.0% to 6.5% saves about $119 monthly and $42,840 total interest.

Should I choose 15-year or 30-year mortgage?

15-year loans have higher payments but much lower total interest. 30-year offers lower payments and flexibility.

How do property taxes affect my payment?

Taxes aren't included in principal/interest calculations. Lenders typically require 1/12 of annual taxes paid monthly into escrow.

What's the difference between extra payments and recasting?

Extra payments reduce principal and shorten loan term. Recasting applies lump sum to principal but keeps original term, lowering monthly payments.

How accurate are online mortgage calculators?

Our calculator is precise for principal and interest. Actual lender quotes include taxes, insurance, PMI, and various fees.

When should I pay points?

Points (prepaid interest) lower your rate. Calculate: points cost ÷ monthly savings = break-even months. Only pay if staying beyond that period.