Free Mortgage Calculator 🏠

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Home Price

Purchase price of the home.

Down Payment

= $80,000.00 (20.0%)

Interest Rate

Annual interest rate (APR).

Loan Term

Monthly Payment

$2,075.51

P&I only — 30-year at 6.75%

Total Interest

$427.2K

Over 360 payments

Total Cost

$747.2K

Principal + all interest

Loan Breakdown

Loan: $320,000.00

Principal 43%Interest 57%

$80,000.00

Down Payment

$320,000.00

Loan Amount

$427,185.01

Total Interest

Amortization ScheduleFirst 12 months

Month	Payment	Principal	Interest	Balance
1	$2,075.51	$275.51	$1,800.00	$319,724.49
2	$2,075.51	$277.06	$1,798.45	$319,447.42
3	$2,075.51	$278.62	$1,796.89	$319,168.80
4	$2,075.51	$280.19	$1,795.32	$318,888.61
5	$2,075.51	$281.77	$1,793.75	$318,606.85
6	$2,075.51	$283.35	$1,792.16	$318,323.49
7	$2,075.51	$284.94	$1,790.57	$318,038.55
8	$2,075.51	$286.55	$1,788.97	$317,752.00
9	$2,075.51	$288.16	$1,787.36	$317,463.84
10	$2,075.51	$289.78	$1,785.73	$317,174.06
11	$2,075.51	$291.41	$1,784.10	$316,882.66
12	$2,075.51	$293.05	$1,782.46	$316,589.61

Formula

M = P [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ]

M = monthly payment

P = principal loan amount ($320,000.00)

r = monthly interest rate = annual rate ÷ 12 (6.75% ÷ 12 = 0.5625%)

n = total number of payments = 30 × 12 = 360

M = $320,000.00 × [(0.005625)(1+0.005625)^360] / [(1+0.005625)^360−1] = $2,075.51/mo

What is Free Mortgage Calculator 🏠?

A mortgage calculator uses the standard fixed-rate amortization formula to compute your monthly principal-and-interest payment (P&I) based on four inputs: home price, down payment, interest rate, and loan term. It then derives total interest paid over the life of the loan and generates a full month-by-month amortization schedule showing exactly how each payment is split between principal and interest. The core formula is: M = P [ r(1+r)ⁿ ] / [ (1+r)ⁿ − 1 ] Where: M = monthly payment P = principal loan amount (home price minus down payment) r = monthly interest rate (annual rate ÷ 12) n = total number of monthly payments (years × 12) For a $400,000 home with 20% down ($80,000), a 30-year term, and a 6.75% interest rate: P = $320,000, r = 0.5625%, n = 360. The formula yields M = $2,075.69/month. Over 360 payments, total paid = $747,248.40 — meaning $427,248.40 is pure interest, more than the original loan amount. Early in a loan, the vast majority of each payment goes to interest rather than reducing principal. This is why amortization front-loads interest costs — in month 1, roughly $1,800 of a $2,076 payment is interest. By month 300 (year 25), that ratio flips. Understanding this is critical for evaluating whether to make extra principal payments to reduce total interest. Key factors this calculator covers: - **Down Payment Impact**: A down payment below 20% typically triggers Private Mortgage Insurance (PMI), adding $50–$200/month to your effective payment. This calculator flags the PMI threshold. - **Term Comparison**: A 15-year mortgage at the same rate cuts total interest roughly in half compared to 30 years, but increases the monthly payment by ~40–50%. The 20-year term is a common middle ground. - **Rate Sensitivity**: Each 0.5% rate increase on a $300,000 loan adds roughly $90/month and $32,000 in total interest over 30 years — making rate shopping one of the highest-leverage financial decisions in homebuying. Note: This calculator computes principal and interest only. Your actual monthly payment will also include property taxes, homeowners insurance, HOA fees (if applicable), and PMI if your down payment is below 20%.

How to Use This Tool

1
Enter the Home Price — the full purchase price of the property, not the loan amount.
2
Set your Down Payment using either the % or $ toggle. The field converts and displays the equivalent value in the other format. A PMI warning appears if you go below 20%.
3
Enter the Annual Interest Rate (APR) offered by your lender. Even a 0.25% difference has a meaningful impact on total cost — try adjusting it to see the effect live.
4
Select your Loan Term: 30, 20, or 15 years. The term buttons update all outputs instantly.
5
Read your results: Monthly Payment (P&I), Total Interest over the loan life, and Total Cost. The cost breakdown bar shows the principal-vs-interest split visually.
6
Scroll to the Amortization Schedule to see the first 12 months of payments broken into principal, interest, and remaining balance. Click "Show all months" to expand the full schedule.

Real-World Use Cases

First-Time Buyer Comparing 15 vs. 30-Year Terms

Enter a $350,000 home price with 10% down ($35,000), a 7.0% rate, and toggle between 15 and 30 years. The 30-year term shows $2,097/month with $440,000+ in total interest. Switch to 15 years: $2,847/month but only $193,000 in total interest — a saving of nearly $250,000. The monthly difference is $750, which you can weigh against your income and budget. The amortization table shows how quickly the 15-year loan builds equity versus the slow equity accumulation in the early years of the 30-year mortgage.

Evaluating the True Cost of a Rate Difference

You've been quoted 6.5% by one lender and 6.875% by another on a $500,000 home with 20% down. Enter $500,000, 20% down, 30 years, and 6.5% — your monthly payment is $2,528 with $510,000 in total interest. Change the rate to 6.875%: monthly rises to $2,631, total interest climbs to $547,000. The 0.375% rate difference costs $103 more per month and $37,000 over 30 years. This calculation instantly makes the case for paying points to buy down the rate, or for spending time shopping additional lenders.

Planning a Down Payment Savings Goal

You've found a $450,000 home and want to know the monthly payment difference between 10% and 20% down. At 10% down ($45,000), the loan is $405,000 — monthly P&I of $2,701 at 6.75% on a 30-year term, plus PMI of roughly $150/month. At 20% down ($90,000), the loan is $360,000 — monthly P&I of $2,334, no PMI. The $45,000 additional down payment saves ~$517/month ($6,200/year). Depending on your savings timeline and opportunity cost, you can calculate how many months it takes for the monthly savings to recoup the larger down payment.

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