Mortgage Calculator
Calculate your monthly mortgage payment and understand the full cost of homeownership.
Plan Your Home Purchase with Confidence
Buying a home is one of the biggest financial decisions you'll make. Understanding your monthly payment and total cost is crucial for making an informed decision. Our mortgage calculator helps you explore different scenarios and find the right loan for your situation.
Monthly Payment
$2,573
Loan Amount
$320,000
20.0% down payment
Total Interest Paid
$408,142
Over 30 years
Total Cost
$728,142
Principal + Interest + Taxes + Insurance
Monthly Payment Breakdown
Loan Balance Over Time
Amortization Schedule
| Month | Principal | Interest | Payment | Balance |
|---|---|---|---|---|
| Month 1 | $289 | $1,733 | $2,023 | $319,711 |
| Month 2 | $291 | $1,732 | $2,023 | $319,420 |
| Month 3 | $292 | $1,730 | $2,023 | $319,127 |
| Month 4 | $294 | $1,729 | $2,023 | $318,833 |
| Month 5 | $296 | $1,727 | $2,023 | $318,538 |
| Month 6 | $297 | $1,725 | $2,023 | $318,241 |
| Month 7 | $299 | $1,724 | $2,023 | $317,942 |
| Month 8 | $300 | $1,722 | $2,023 | $317,641 |
| Month 9 | $302 | $1,721 | $2,023 | $317,339 |
| Month 10 | $304 | $1,719 | $2,023 | $317,036 |
| Month 11 | $305 | $1,717 | $2,023 | $316,730 |
| Month 12 | $307 | $1,716 | $2,023 | $316,423 |
| Month 13 | $309 | $1,714 | $2,023 | $316,115 |
| Month 14 | $310 | $1,712 | $2,023 | $315,804 |
| Month 15 | $312 | $1,711 | $2,023 | $315,492 |
| Month 16 | $314 | $1,709 | $2,023 | $315,179 |
| Month 17 | $315 | $1,707 | $2,023 | $314,863 |
| Month 18 | $317 | $1,706 | $2,023 | $314,546 |
| Month 19 | $319 | $1,704 | $2,023 | $314,227 |
| Month 20 | $321 | $1,702 | $2,023 | $313,907 |
| Month 21 | $322 | $1,700 | $2,023 | $313,584 |
| Month 22 | $324 | $1,699 | $2,023 | $313,260 |
| Month 23 | $326 | $1,697 | $2,023 | $312,935 |
| Month 24 | $328 | $1,695 | $2,023 | $312,607 |
| Month 36 | $349 | $1,673 | $2,023 | $308,535 |
| Month 48 | $373 | $1,650 | $2,023 | $304,191 |
| Month 60 | $398 | $1,625 | $2,023 | $299,555 |
| Month 72 | $425 | $1,598 | $2,023 | $294,609 |
| Month 84 | $453 | $1,570 | $2,023 | $289,332 |
| Month 96 | $483 | $1,539 | $2,023 | $283,701 |
| Month 108 | $516 | $1,507 | $2,023 | $277,694 |
| Month 120 | $550 | $1,472 | $2,023 | $271,284 |
| Month 132 | $587 | $1,436 | $2,023 | $264,444 |
| Month 144 | $626 | $1,396 | $2,023 | $257,147 |
| Month 156 | $668 | $1,354 | $2,023 | $249,361 |
| Month 168 | $713 | $1,310 | $2,023 | $241,053 |
| Month 180 | $761 | $1,262 | $2,023 | $232,189 |
| Month 192 | $812 | $1,211 | $2,023 | $222,732 |
| Month 204 | $866 | $1,156 | $2,023 | $212,641 |
| Month 216 | $924 | $1,098 | $2,023 | $201,874 |
| Month 228 | $986 | $1,037 | $2,023 | $190,386 |
| Month 240 | $1,052 | $971 | $2,023 | $178,129 |
| Month 252 | $1,123 | $900 | $2,023 | $165,051 |
| Month 264 | $1,198 | $825 | $2,023 | $151,097 |
| Month 276 | $1,278 | $745 | $2,023 | $136,208 |
| Month 288 | $1,363 | $659 | $2,023 | $120,323 |
| Month 300 | $1,455 | $568 | $2,023 | $103,373 |
| Month 312 | $1,552 | $470 | $2,023 | $85,289 |
| Month 324 | $1,656 | $366 | $2,023 | $65,993 |
| Month 336 | $1,767 | $256 | $2,023 | $45,405 |
| Month 348 | $1,885 | $137 | $2,023 | $23,438 |
| Month 360 | $2,012 | $11 | $2,023 | $0 |
Understanding Your Mortgage Payment
Your total housing payment typically includes:
Principal & Interest (P&I)
The main component of your payment that pays down the loan
Property Taxes
Annual taxes, divided into monthly payments, vary by location
Homeowners Insurance
Required by lenders, protects your home from damage
PMI (if applicable)
Required if down payment is less than 20%
HOA Fees (if applicable)
Monthly fees for community amenities and maintenance
Mortgage Calculators: The Complete Guide to Understanding Your Payments
A mortgage is probably the biggest financial decision you'll ever make. For most people, it's literally the largest amount of money they'll ever borrow. Yet most buyers go into the process without really understanding what they're actually paying, what their payments mean, or how changes in the interest rate affect them over 30 years. This guide breaks down exactly how mortgages work, how to calculate what you can actually afford, and how to use a mortgage calculator to make smarter decisions. Plus, we've built a calculator so you can see real numbers based on your situation.
How a Mortgage Actually Works (It's Simpler Than You Think)
A mortgage is just a loan for buying a house. You borrow money from a lender, agree to pay it back over 15-30 years, and the house serves as collateral (they can take it if you don't pay). Here's what actually happens in a typical payment:
Notice how most of your payment goes to interest at first? That's how mortgages work. Late in the mortgage, it flips—mostly principal, less interest.
What You Actually Pay: Real Examples
$300,000 Loan, 6.5%, 30 Years
Same $300,000, 5.5%, 30 Years
Just 1% interest difference saves you $69,480. Rates matter.
$300,000, 6.5%, 15 Years (Shorter Term)
Higher monthly payment, but save $192,160 in interest vs. 30 years.
$300,000, 6.5%, 30 Years + Extra $300/Month
How Much House Can You Actually Afford?
The 28% Rule
Your monthly mortgage payment (including taxes, insurance, HOA) should be max 28% of your gross monthly income. Make $6,000/month? Your mortgage shouldn't exceed ~$1,680/month.
The 36% Rule (Total Debt)
All your debt payments (mortgage, car loan, student loans, credit cards) combined should be max 36% of income. This leaves room for mortgage plus other obligations.
The 20% Down Payment Rule
Aim to put 20% down to avoid PMI (mortgage insurance). $300,000 house = $60,000 down. But first-time buyers can go lower (3-10%) if needed.
Real talk: Just because you can get approved for $500,000 doesn't mean you should borrow it. Lenders approve based on income, not actual afford ability considering your lifestyle. Be conservative. You need money for maintenance, property tax increases, and life emergencies.
Terms You Need to Understand
Fixed vs. Adjustable Rate
Fixed: Rate stays the same for entire 30 years. Payment never changes. ARM: Rate fixed for 3-7 years, then adjusts yearly. Risky if rates go up.
Principal & Interest (P&I)
The money actually going to pay down your loan. Rest of your payment goes to taxes, insurance, PMI, HOA—not toward owning the house.
APR vs Interest Rate
Rate: Pure borrowing cost. APR: Includes fees and points. APR is what actually matters for comparing loans.
PMI (Mortgage Insurance)
Charged if you put down less than 20%. Protect the lender, not you. Added to your payment. Goes away once you hit 20% equity.
Amortization
Schedule showing how your payments are split between principal and interest over time. Early payments mostly interest, later mostly principal.
Escrow
Lender holds money for taxes and insurance, pays them for you. Protects lender's investment. Most mortgages require it.
Ways to Actually Save Money on Your Mortgage
Shop Multiple Lenders
Different lenders offer different rates. Getting quotes from 5-10 lenders might save you $100-200/month. Over 30 years, that's $36,000-72,000.
Improve Your Credit Score
A 740 credit score gets a better rate than 700. Work on your credit for 3-6 months before applying could save 0.5% APR (=$150+/month).
Make a Bigger Down Payment
20% down eliminates PMI. 25% down gets even better rates. Every 5% additional down typically saves 0.25% on the rate.
Make Extra Principal Payments
Pay $2,000/month instead of $1,700? That $300 goes straight to principal. Cuts years off your mortgage and saves interest.
Refinance When Rates Drop
Refinancing from 7% to 5.5%? That's life-changing over 30 years. Watch rates—when they drop 0.5%+, it's worth exploring.
Mortgage Mistakes That Actually Cost You
Putting down only 5% to save cash, then paying PMI for years. 20% down usually costs less overall.
Not getting pre-approved before house hunting. You might spend months on homes you can't afford.
Choosing a 30-year mortgage when you could do 15. Mortgage payments are low but total interest is massive.
Taking out an ARM because the initial rate is lower. Rates rise, suddenly your $1,200 payment becomes $1,800.
Ignoring property taxes and insurance in your calculations. A $300,000 house might cost $2,500/month with taxes/insurance, not $1,900.
Moving or refinancing before breaking even on closing costs. Refinancing costs $3,000-5,000. Rates need to save that within a few years.
Mortgage Calculator Questions
How accurate is a mortgage calculator?
Very accurate for basic payment calculations. It assumes fixed payments, set interest rate, and consistent terms. Real mortgages might include taxes, insurance, HOA in escrow which a simple calculator doesn't always account for.
What's a good mortgage interest rate right now?
It changes daily. As of 2024, rates range from 5.5-7% depending on credit and market. Compare current rates with multiple lenders to see what you qualify for.
Should I do a 15-year or 30-year mortgage?
30-year gives lower monthly payments but costs more interest overall. 15-year costs more monthly but saves $100k+ in interest. It depends on your cash flow. If tight on cash, do 30-year. If comfortable, 15-year wins.
Can I pay off my mortgage early without penalties?
Most mortgages allow it. Some old loans have prepayment penalties. Check your mortgage document. Early payoff is usually beneficial—saves interest.
What's a mortgage point?
1 point = 1% of loan amount ($3,000 on a $300k loan). You pay points upfront to reduce your interest rate. Usually makes sense if you plan to keep the house 5+ years.
How does inflation affect my mortgage?
It actually helps you. Your payment stays fixed while inflation rises. That $1,900 payment is worth less each year in real dollars. Inflation is a borrower's friend.
The Bottom Line on Mortgage Calculations
A mortgage calculator lets you explore different scenarios—different down payments, interest rates, or loan terms—and see how they affect your monthly payment and total interest paid. Use it to understand your options before you talk to a lender. Shop rates from multiple lenders, get pre-approved knowing what you can afford, and remember: just because you can get approved for a big mortgage doesn't mean you should. Use our calculator above to see real numbers for your situation.
15-Year vs. 30-Year Mortgage
30-Year Mortgage
- ✓ Lower monthly payments
- ✓ More financial flexibility
- ✗ Higher total interest paid
- ✗ Slower equity building
15-Year Mortgage
- ✓ Significant interest savings
- ✓ Faster equity building
- ✓ Faster path to homeownership
- ✗ Higher monthly payments
Frequently Asked Questions
How much house can I afford?▼
Most lenders use the 28% rule: your housing payment shouldn't exceed 28% of gross monthly income. A $100,000 annual income suggests a maximum payment of $2,333/month. Use our calculator to explore what price this supports.
Is it better to make extra principal payments?▼
Extra principal payments reduce your loan balance and total interest. However, consider your opportunity cost—if you could earn higher returns elsewhere, investing might be better. Check your loan for prepayment penalties first.