Mortgage Calculator
See what a home really costs you each month. Enter the home price, your down payment, the interest rate, and the loan term to estimate your monthly principal-and-interest payment — and how much interest you’d pay over the life of the loan. It takes ten seconds, and it usually surprises people.
Mortgage Calculator
Down payment amount: $90,000
Example rate — edit to your actual quote. Freddie Mac's weekly average was 6.95% on Sept 17, 2026; Bankrate's daily average was 7.17% on Sept 24, 2026.
Monthly payment covers principal and interest only — property taxes, homeowners insurance, and PMI are not included.
| Year | Interest paid | Principal paid | Remaining balance |
|---|
For education only — not financial/tax advice.
How the calculation works
A mortgage is an amortizing loan: you pay the same amount every month, but the split between interest and principal shifts over time. Early payments are mostly interest; late payments are mostly principal. The monthly payment comes from the standard amortization formula — loan amount, monthly interest rate, and number of payments in, one fixed payment out:
M = P × [r(1+r)n] / [(1+r)n − 1]
where P is the amount borrowed, r is the monthly interest rate, and n is the total number of payments (360 for a 30-year loan). Change any one of the three and the payment moves — which is why small rate differences matter so much over 30 years.
A worked example
Take a hypothetical $400,000 home with 20% down ($80,000). You borrow $320,000 for 30 years at a 7% fixed rate. The calculator gives a monthly principal-and-interest payment of about $2,129 — and total interest of roughly $446,000 over the life of the loan. That’s the number most buyers underestimate: on a 30-year loan, the interest can exceed the amount borrowed. Shortening the term or raising the down payment are the two levers that cut it fastest.
Know your terms
- Principal — the amount you borrow, repaid over the life of the loan.
- Interest — the lender’s charge for the loan, expressed as an annual rate.
- Term — the repayment period, usually 30 or 15 years for fixed-rate mortgages.
- Down payment — your upfront contribution; 20% is the traditional benchmark.
- LTV (loan-to-value) — the loan amount divided by the home’s value. Above 80% LTV, most conventional loans require PMI.
- PMI (private mortgage insurance) — protects the lender, not you, when the down payment is small; it typically drops off once you reach 20% equity.
- Escrow — the part of your monthly payment the servicer holds for property taxes and homeowner’s insurance.
- Note rate vs. APR — the note rate sets your payment; the APR folds in fees and points to show the true yearly cost. Same payment, different APRs — always compare both.
What’s not in this number
This calculator estimates principal and interest only. Your actual monthly housing cost also includes property taxes, homeowner’s insurance, PMI if your down payment is under 20%, and any HOA dues. In high-tax states, taxes and insurance can add 30–50% on top of the P&I payment — budget for the full picture, not just the loan.
Related reading
- From the Fed to Your Front Door: How Mortgage Rates Are Actually Set — the full chain from the Fed to your loan offer.
- How to Read Home-Price Data Without Being Fooled by It — Case-Shiller, medians, and the traps in housing headlines.
- How central bank policy reaches the economy — why Fed decisions move your mortgage.
Related calculators
- Loan Amortization calculator — see your payment schedule year by year.
- Compound Interest calculator — what your down payment could earn invested instead.
- Inflation calculator — what that payment is worth in future dollars.