Mortgage Calculator

Calculate monthly mortgage payments, total interest, and amortization schedule. Perfect for home buyers planning their finances.

Calculate Your Mortgage

Enter your mortgage details below. Calculations update automatically:

How Mortgage Payments Work

A mortgage is a loan used to purchase real estate, typically a home. The borrower agrees to pay back the loan amount plus interest over a specified period of time.

Mortgage Payment Formula

The monthly payment is calculated using the loan payment formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

  • M = Monthly payment
  • P = Principal (loan amount)
  • r = Monthly interest rate
  • n = Number of payments

Understanding Your Mortgage

In the early years of your mortgage, a large portion of your payment goes toward interest. Over time, more of your payment goes toward the principal balance.

Factors Affecting Your Payment

  • Loan Amount: Higher loan amounts result in higher payments
  • Interest Rate: Even a small difference in rate can significantly impact payments
  • Loan Term: Longer terms mean lower monthly payments but more total interest
  • Down Payment: Larger down payments reduce the loan amount and monthly payments

Example

For a $300,000 loan at 4.5% interest for 30 years:

Monthly Payment ≈ $1,520.06
Total Interest ≈ $247,221.60
Total Payments ≈ $547,221.60

💡 Tip: Shop around for the best interest rates. Even a 0.25% difference can save you thousands of dollars over the life of your loan.