Calculate your monthly mortgage payment, see amortization schedules, and understand how much you'll pay over the life of your loan.
A mortgage calculator helps you estimate your monthly mortgage payment and understand the long-term financial commitment of a home loan. It takes into account the principal amount, interest rate, loan term, and additional costs like property taxes, insurance, and PMI.
For a $350,000 home with a $70,000 down payment (20%), a 30-year fixed loan at 6.5% interest:
Your monthly payment would be approximately $2,281 including principal, interest, taxes, insurance, and PMI.
Over the life of the loan, you would pay $358,424 in interest alone.
Your mortgage payment typically consists of four components:
Understanding these components can help you make informed decisions about your home purchase and potentially save money by making extra payments toward your principal.
The monthly mortgage payment is calculated using the following formula:
Where:
M = Monthly mortgage payment
P = Loan principal amount
i = Monthly interest rate (annual rate ÷ 12)
n = Number of payments (loan term in years × 12)
PMI: Private Mortgage Insurance required when down payment is less than 20%
Amortization: The process of paying off a loan through regular payments
Equity: The difference between your home's value and your mortgage balance
Escrow: An account that holds funds for property taxes and insurance