Calculate your monthly mortgage payment, total interest paid, and view a full amortization schedule.
20.0% of the price
Principal vs. interest over the life of the loan
Enter the home price and your down payment; the difference is the amount you borrow. Add the interest rate your lender quoted and choose the loan term (15 and 30 years are the most common).
The result is the monthly principal-and-interest payment. Property tax, homeowner’s insurance, HOA dues and PMI (usually required when you put down less than 20%) are extra — add your estimates on top. Open the amortization table to see how each payment splits between interest and principal.
The monthly mortgage payment is calculated with:
M = P × r / (1 − (1 + r)^−n)If the rate is 0%, M = P ÷ n. The schedule is rounded to the cent and the final payment is adjusted so the balance reaches exactly $0.
A full mortgage payment is often described as PITI: principal, interest, property taxes and homeowner’s insurance, plus PMI or HOA dues where they apply. This calculator shows principal and interest only; add your tax and insurance estimates separately.
A 15-year mortgage has a higher monthly payment but typically costs less than half as much total interest as a 30-year loan at the same rate — and 15-year rates are usually lower too. A 30-year loan keeps the monthly payment lower at the cost of more interest over time.
Amortization is paying off the loan through fixed scheduled payments. Early payments are mostly interest because the balance is large; as the balance falls, more of each payment goes to principal.
On a 30-year loan, each 1 percentage point increase in the rate adds roughly $55–$70 per month for every $100,000 borrowed, depending on the starting rate.
No. Many conventional loans allow as little as 3–5% down and FHA loans 3.5%, but with less than 20% down on a conventional loan you will usually pay private mortgage insurance (PMI) until you reach enough equity.
Extra payments applied to principal reduce the balance that interest is charged on, which can shorten the loan by years and save significant interest. Use the Amortization calculator to model an extra monthly payment.
A fixed-rate mortgage locks your interest rate for the entire loan term, providing predictable monthly payments. An adjustable-rate mortgage (ARM) starts with a lower rate that resets periodically — typically after 5 or 7 years. Fixed rates are ideal for long-term homeowners, while ARMs benefit those planning to sell or refinance within a few years.
Your credit score is the single biggest factor in your mortgage rate. A score above 740 typically qualifies for the best rates. Other factors include your down payment size (20% or more avoids PMI), debt-to-income ratio (keep it below 43%), and shopping multiple lenders. Even a 0.25% rate difference saves over $15,000 on a $300,000 loan.
Beyond the principal and interest, homeownership costs include property taxes (averaging 1.1% of home value annually), homeowners insurance ($1,200–$2,000/year), private mortgage insurance if your down payment is under 20%, and maintenance (budget 1–2% of home value yearly). Factor all these into your budget before buying.
Did you know?
On a typical 30-year mortgage at 6.5%, you will pay more in total interest than the original loan amount. For a $300,000 loan, total interest exceeds $380,000 — meaning you pay more than double the home price.
The word "mortgage" comes from Old French "mort gage," meaning "dead pledge." The concept dates back to 1190 in England when land could be pledged as security for a debt. Modern fixed-rate mortgages became widespread in the United States during the 1930s after the Great Depression, when the Federal Housing Administration standardized the 30-year amortizing loan.
The average US mortgage term is 30 years, but the median homeowner stays in their home for only 13 years before selling or refinancing.
Paying just one extra mortgage payment per year can shorten a 30-year mortgage by approximately 4–5 years and save tens of thousands in interest.
The first mortgage interest rate in US history was around 6% in the 1930s. The highest recorded average was 18.63% in October 1981.
In Japan, some banks offer 100-year mortgages that can be passed down through generations.
Mortgage interest is tax-deductible in the United States, making homeownership one of the largest tax shelters available to average citizens.