Mortgage Payment Calculator
Calculate your monthly home loan payments instantly
30 Years
20 Years
15 Years
10 Years
Your Estimated Monthly Payment
$0.00
Total Loan Amount
$0
Total Interest Paid
$0
Understanding Your Mortgage Payment
A mortgage payment is more than just repaying the money you borrowed. For most homeowners, the monthly check sent to the lender covers four main components, often referred to as PITI: Principal, Interest, Taxes, and Insurance.
How the Mortgage Formula Works
This calculator uses the standard amortization formula to determine your fixed monthly payment:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Total monthly payment
- P: Principal loan amount (Home Price minus Down Payment)
- i: Monthly interest rate (Annual rate divided by 12)
- n: Number of months (Years multiplied by 12)
Example Calculation
If you purchase a home for $400,000 with a 20% down payment ($80,000), your loan amount is $320,000. At a 6% interest rate for 30 years:
- Monthly Principal & Interest: $1,918.56
- Total Interest over 30 years: $370,681.60
- Total Paid: $690,681.60
3 Tips to Lower Your Monthly Payment
- Increase your Down Payment: Borrowing less reduces the principal and may eliminate the need for Private Mortgage Insurance (PMI).
- Improve your Credit Score: Borrowers with scores above 740 typically qualify for the lowest available interest rates.
- Choose a Longer Term: While a 30-year loan has higher total interest, the monthly payments are significantly lower than a 15-year loan.