Mortgage Payment Calculator
Enter your home price, down payment, loan term, and interest rate to instantly calculate your monthly mortgage payment and see exactly how much you'll pay in total over the life of the loan.
Calculate Your Mortgage Payment
Understanding Your Mortgage Payment
Your monthly mortgage payment is made up of two core components:
- Principal — the portion that directly reduces your outstanding loan balance. Early payments contain very little principal; later payments contain much more.
- Interest — the cost your lender charges for borrowing the money. It is calculated on your remaining balance, so it decreases each month as you pay the loan down.
In practice, your lender may also collect property taxes, homeowner's insurance, and private mortgage insurance (PMI) through an escrow account. This calculator shows the principal and interest portion only — your actual payment quoted by a lender will likely be higher once those costs are included.
How interest rate affects total cost: On a $300,000 loan over 30 years, moving from a 6% to a 7% rate raises your monthly payment by roughly $200 and adds over $72,000 to the total interest you pay. Even a 0.5% rate difference is worth shopping for before you sign.
How to Calculate a Mortgage Payment
A fixed-rate mortgage uses the following formula to divide your loan into equal monthly payments:
When the interest rate is 0%, this simplifies to M = P / n. For a 6.5% rate on a $280,000 loan over 30 years, the monthly payment works out to approximately $1,770.
This process — where each equal payment gradually shifts from being mostly interest to mostly principal — is called amortization. In the first years of a 30-year mortgage, up to 85% of each payment goes to interest. By year 25, the split reverses and most of each payment reduces the principal balance.
Factors That Affect Your Monthly Mortgage
- Loan amount — the larger the loan, the higher the monthly mortgage payment. A larger down payment directly reduces the amount you need to finance.
- Interest rate — even a 0.25% difference compounds significantly over 30 years. Your rate depends on the market, your credit score, the loan type, and the lender.
- Loan term — a 15-year term has higher monthly payments than a 30-year term for the same loan, but total interest paid is dramatically lower.
- Property taxes & insurance — lenders typically collect these through an escrow account, increasing your effective monthly payment beyond principal and interest alone.
- PMI (Private Mortgage Insurance) — required when your down payment is below 20%, adding 0.5%–1.5% of the loan amount per year until your equity reaches 20%.
- Credit score — higher scores unlock lower interest rates. Improving your score by 40–50 points before applying can save thousands over the loan term.
Tips to Reduce Your Mortgage Cost
- Increase your down payment. Every extra dollar reduces the principal, lowers your monthly payment, and shrinks the total interest you pay. Reaching 20% also eliminates PMI.
- Compare multiple lenders. Getting rate quotes from three or more lenders — banks, credit unions, and online lenders — typically surfaces better offers than going with your first option.
- Improve your credit score before applying. Pay down existing debt, dispute errors on your credit report, and avoid opening new credit lines in the 6–12 months before you apply.
- Choose a shorter loan term if you can afford it. A 15-year mortgage costs more per month but saves a substantial amount in total interest compared to a 30-year loan.
- Make extra principal payments. Even $100/month extra on a 30-year mortgage can eliminate years from your term and save tens of thousands in interest.
- Refinance when rates drop meaningfully. If market rates fall significantly below your current rate, refinancing can lock in a lower monthly payment and reduce total interest — though closing costs need to be factored in.
Example Mortgage Calculation
Suppose you buy a home for $350,000 with a $70,000 down payment (20%), a 30-year term, and a 6.5% interest rate.
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Frequently Asked Questions
How much mortgage can I afford?
A widely used rule is to keep total monthly housing costs — principal, interest, taxes, and insurance — below 28% of your gross monthly income. On an $80,000 annual salary (~$6,667/month), that means a maximum housing payment of roughly $1,867. Use this mortgage payment calculator to test different home prices and down payments until the number fits comfortably within your budget.
What is a good mortgage interest rate?
A "good" rate is one at or below the current market average for your loan type and credit profile. Rates shift constantly with broader economic conditions. Borrowers with credit scores above 740, a 20%+ down payment, and stable income typically qualify for the lowest available rates. The most reliable approach: get quotes from at least three lenders and compare the APR — not just the headline rate — since the APR includes fees and gives a more accurate total-cost comparison.
Does a longer loan term reduce monthly payments?
Yes — but at a significant long-term cost. Spreading the same loan over more years lowers each monthly mortgage payment, but it greatly increases the total interest you pay over time. A $300,000 loan at 6.5% costs about $1,896/month over 30 years versus $2,613/month over 15 years — but the 30-year borrower pays nearly $182,000 more in interest over the life of the loan.
How much interest will I pay over the life of my mortgage?
It depends on your loan amount, interest rate, and term. On a $280,000 loan at 6.5% for 30 years, total payments come to roughly $357,000 — meaning about $77,000 goes entirely to interest. This calculator shows your total interest figure automatically once you enter your details. Try adjusting the loan term or rate to see how the total cost changes dramatically.
Can I pay off my mortgage early?
Yes. Making extra payments toward the principal reduces your balance faster, cutting total interest and shortening the loan term. Even an extra $100–$200 per month on a 30-year mortgage can eliminate several years from your repayment schedule. Before sending extra payments, check your mortgage agreement for any prepayment penalties, and confirm with your lender that the additional funds are applied directly to principal — not to future scheduled payments.
Explore Mortgage Scenarios
Not sure which mortgage setup fits your situation? Browse these pre-calculated pages to compare monthly payments across common loan types and amounts:
- 30-Year Mortgage Calculator — Monthly payments and total interest for the most popular loan term
- 15-Year Mortgage Calculator — Higher monthly payments, but dramatically less total interest over the life of the loan
- $300,000 Mortgage Monthly Payment — Pre-calculated results for a $300K loan across multiple interest rates
- Mortgage vs. Rent Comparison — Find out whether buying or renting makes more financial sense for your situation
Popular Mortgage Guides
Compare Mortgage Rates
Even a small difference in interest rates can save you thousands over the life of your loan. Before committing to a mortgage, consider comparing offers from multiple lenders to find the best rate and terms for your financial situation.
Example Mortgage Scenarios
Explore pre-calculated scenarios for common loan amounts, terms, and interest rates:
- By loan amount: $150K, $200K, $250K, $300K, $350K, $400K, $450K, $600K
- By interest rate: 3%, 4%, 5%, 6%, 7%, 8%
- By loan term: 15-year mortgage, 30-year mortgage
- Monthly payment scenarios: $200K loan, $300K loan, $400K loan, $500K loan
- Other: Mortgage vs. Rent Comparison
What to Look For When Comparing Mortgage Rates
Even a 0.25% difference in your mortgage rate changes your total interest paid by tens of thousands of dollars over a 30-year term. When evaluating lenders, consider these factors alongside the headline rate:
- APR vs. interest rate — the APR includes origination fees and gives a more accurate total-cost comparison across lenders
- Points — paying discount points upfront lowers your rate but extends the break-even period; worthwhile only if you stay in the home long enough
- Fixed vs. adjustable — ARMs start lower but carry rate-reset risk after the initial period; fixed rates offer long-term payment certainty
- Lender type — banks, credit unions, and online lenders each offer different rate structures, underwriting timelines, and service models
- Rate lock period — confirm how long the quoted rate is guaranteed during the underwriting process before you are committed