Home Loan Calculator
Calculate your monthly mortgage payments, view amortization schedule, and understand the true cost of home ownership including taxes and insurance.
Loan Details
Additional Costs (Optional)
Monthly Payment
$3,146.86
Loan Summary
Total Payment Breakdown
Mortgage Term Comparison
See how different loan terms affect your monthly payment and total interest
| Term | Monthly P&I | Total Interest | Total Cost |
|---|---|---|---|
| 10 Years | $4,748 | $169,768 | $569,768 |
| 15 Years | $3,708 | $267,449 | $667,449 |
| 20 Years | $3,222 | $373,369 | $773,369 |
| 30 YearsSelected | $2,797 | $606,869 | $1,006,869 |
Understanding Your Mortgage
Principal vs Interest
Your monthly mortgage payment consists of principal (the loan amount) and interest. In early years, more goes to interest. Over time, more goes to paying down your balance.
Down Payment Impact
A larger down payment (20%+) reduces your loan amount, monthly payments, and total interest. It may also help you avoid PMI (Private Mortgage Insurance).
Interest Rate Matters
Even small changes in interest rates significantly impact your total payment. A 0.5% lower rate on a $400K loan can save over $40,000 over 30 years.
Frequently Asked Questions
Common questions about home loans and mortgage calculations
How is my monthly mortgage payment calculated?
Monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. The formula considers the principal (loan amount minus down payment), converts the annual interest rate to monthly, and spreads payments over the loan term using an amortization formula.
What is the difference between principal and interest?
Principal is the amount you borrowed to buy your home. Interest is the cost charged by the lender for borrowing that money. In early years, more of your payment goes to interest. Over time, more goes to principal as your balance decreases.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but lower total interest and faster equity building. A 30-year mortgage has lower monthly payments but higher total interest. Choose based on your budget and financial goals.
How much down payment do I need for a home?
Traditional advice is 20% to avoid PMI (Private Mortgage Insurance). However, many loans allow 3-5% down. FHA loans require 3.5% minimum, and VA/USDA loans may require no down payment for eligible borrowers.
What is included in my total monthly housing payment?
Your total monthly payment typically includes Principal, Interest, Taxes, and Insurance (PITI). Some homes also have HOA fees. Lenders often require an escrow account to collect and pay taxes and insurance.
What is an amortization schedule?
An amortization schedule shows how each payment is split between principal and interest over the life of the loan. It also shows your remaining balance after each payment, helping you track equity building.
How does interest rate affect my mortgage payment?
Interest rate significantly impacts total cost. For example, on a $400,000 loan over 30 years, a 7% rate vs 6% rate means about $240 more per month and roughly $86,000 more in total interest paid.
Can I make extra payments to pay off my mortgage faster?
Yes, making extra payments directly to principal can significantly reduce your loan term and total interest. Even one extra payment per year can shave years off your mortgage and save thousands in interest.
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