Advanced Mortgage Payment Calculator
30 Years Fixed
20 Years Fixed
15 Years Fixed
10 Years Fixed
Calculation Summary
Estimated Monthly Payment:
$0.00
Total Principal Amount:
$0.00
Total Interest Paid:
$0.00
Total Cost of Loan:
$0.00
Understanding Your Mortgage Payments
Purchasing a home is one of the most significant financial decisions you'll ever make. This mortgage calculator helps you estimate your monthly principal and interest payments so you can budget effectively. By adjusting the home price, down payment, and interest rate, you can see how different scenarios impact your long-term financial health.
How This Calculation Works
The monthly payment is calculated using the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
- M: Total monthly payment
- P: Principal loan amount (Home Price – Down Payment)
- i: Monthly interest rate (Annual Rate divided by 12)
- n: Total number of months (Years multiplied by 12)
Key Factors Influencing Your Payment
- Down Payment: A larger down payment reduces the principal amount, which lowers your monthly interest and potentially removes the need for Private Mortgage Insurance (PMI).
- Loan Term: Shorter terms (like 15 years) typically have lower interest rates but higher monthly payments, whereas 30-year terms offer lower monthly payments but higher total interest costs over time.
- Interest Rate: Even a 0.5% difference in your interest rate can save or cost you tens of thousands of dollars over the life of the loan.
Example Scenario
If you purchase a home for $500,000 with a 20% down payment ($100,000) at a 7% interest rate for 30 years:
- Loan Principal: $400,000
- Monthly Principal & Interest: $2,661.21
- Total Interest Paid: $558,035.60
- Total Payback: $958,035.60