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Mortgage Calculator
Enter the price of the home, your down payment and the loan terms. You get the monthly payment, how much of it is loan repayment and the total interest over the life of the loan.
Example
A $400,000 home with 20% down leaves a loan of $320,000. At 6.5% over 30 years, principal and interest come to $2,022.62 a month. Adding tax and insurance brings the payment to $2,480.95. Over the full term you pay $408,142 in interest.
How the mortgage calculator works
A fixed-rate mortgage has the same principal and interest payment every month. The formula is M = P × i / (1 − (1 + i)−N), where P is the loan amount, i the monthly interest rate and N the number of monthly payments.
Early payments are mostly interest, because interest is charged on a large balance. As the balance falls, more of each payment goes to principal. The chart shows this: the balance drops slowly at first, then faster.
Property tax and insurance are added on top as one twelfth of the yearly cost. Many lenders collect them with the mortgage payment, so including them gives a more realistic monthly figure.
Common questions
How much difference does the interest rate make?
A lot. On a 30-year loan, one percentage point changes the monthly payment by roughly 10% and the total interest by much more. Change the rate above to see the effect on your numbers.
Is a shorter term better?
A shorter term means a higher monthly payment and far less total interest. A longer term costs more overall and leaves more room in your monthly budget. Which is better depends on what you can afford each month.
What costs are not included?
Mortgage insurance, association fees, maintenance and closing costs are not included. Ask your lender for a full estimate before you commit.