Free Mortgage Calculator

by
free mortgage calculator
Fixed Rate MortgageInterest Only Mortgage
Monthly Payment:
$ 0.00
function calculateMortgage(){var price = parseFloat(document.getElementById('home_price').value);var down = parseFloat(document.getElementById('down_payment').value);var rate = parseFloat(document.getElementById('interest_rate').value);var term = parseFloat(document.getElementById('loan_term').value);var type = document.getElementById('calc_type').value;var showSteps = document.getElementById('steps').checked;if(isNaN(price)||isNaN(down)||isNaN(rate)||isNaN(term)){alert('Please enter valid numeric values for all fields');return;}if(down > price){alert('Down payment cannot be greater than home price');return;}var principal = price – down;var monthlyRate = (rate / 100) / 12;var numberOfPayments = term * 12;var monthlyPayment = 0;if(type === 'fixed'){if(rate === 0){monthlyPayment = principal / numberOfPayments;}else{monthlyPayment = principal * (monthlyRate * Math.pow(1 + monthlyRate, numberOfPayments)) / (Math.pow(1 + monthlyRate, numberOfPayments) – 1);}}else{monthlyPayment = principal * monthlyRate;}var totalPaid = monthlyPayment * numberOfPayments;var totalInterest = totalPaid – principal;document.getElementById('resultValue').innerHTML = monthlyPayment.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});if(showSteps){var details = 'Summary Breakdown:
';details += 'Principal Loan Amount: $' + principal.toLocaleString() + '
';details += 'Total Interest Paid: $' + totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2}) + '
';details += 'Total Cost of Loan: $' + totalPaid.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2}) + '
';document.getElementById('detailsArea').innerHTML = details;document.getElementById('detailsArea').style.display = 'block';}else{document.getElementById('detailsArea').style.display = 'none';}}

Calculator Use

Our free mortgage calculator is designed to help prospective homebuyers, real estate investors, and current homeowners estimate their monthly mortgage payments quickly and accurately. By entering a few key financial details, you can see how different interest rates, loan terms, and down payments impact your long-term financial commitments.

This tool allows you to compare fixed-rate options against interest-only scenarios, giving you a comprehensive view of your potential housing costs before you ever step foot into a bank or lender's office.

Home Price
The total purchase price of the property you wish to buy.
Down Payment
The initial cash amount you pay upfront. A higher down payment reduces the principal loan amount and your monthly costs.
Interest Rate
The annual interest rate charged by the lender for the mortgage loan.
Loan Term
The length of time you have to repay the loan, typically 15, 20, or 30 years.

How It Works

A mortgage payment consists of two primary components: Principal and Interest. To calculate the monthly payment for a standard fixed-rate loan, the free mortgage calculator uses the standard amortization formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

  • M = Total monthly payment
  • P = Principal loan amount (Home Price – Down Payment)
  • i = Monthly interest rate (Annual Rate / 12)
  • n = Total number of months in the loan term

Calculation Example

Example: Let's say you are buying a home for $400,000 with a $80,000 down payment. You have secured a 30-year fixed-rate mortgage at an interest rate of 6%.

Step-by-step solution:

  1. Principal (P): $400,000 – $80,000 = $320,000
  2. Monthly Rate (i): 0.06 / 12 = 0.005
  3. Number of Payments (n): 30 years × 12 months = 360 payments
  4. Calculate M: $320,000 [ 0.005(1.005)^360 ] / [ (1.005)^360 – 1 ]
  5. Result: $1,918.56 per month

Common Questions

Does this calculator include property taxes?

This specific free mortgage calculator focuses on the Principal and Interest (P&I). To get your full monthly housing cost (PITI), you should manually add monthly property taxes, homeowners insurance, and any HOA fees to the result.

What is a good down payment?

While 20% is the traditional benchmark to avoid Private Mortgage Insurance (PMI), many lenders accept as little as 3% to 5%. However, using our calculator, you can see how a larger down payment significantly lowers your monthly interest costs over time.

How does interest-only differ?

In an interest-only mortgage, your monthly payment only covers the interest accrued. Your principal balance does not decrease. This results in lower initial payments but means you will eventually need to pay off the principal in a lump sum or through a higher recalculated payment later.

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