Mortgage Calculator
Estimate your monthly mortgage payment, including taxes and insurance.
Estimates only. Your lender’s figures will differ, and this tool does not include private mortgage insurance, closing costs or changes in taxes and insurance over time.
| Year | Remaining balance | Paid off |
|---|
Frequently asked questions
How is a monthly mortgage payment calculated?
The principal and interest part uses the standard amortisation formula: M = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly interest rate and n is the number of monthly payments. Property tax, insurance and any HOA fees are then added on top to give your total monthly cost.
How much is the monthly payment on a $350,000 home?
With 20% down ($70,000), a $280,000 loan at 6.5% for 30 years has a principal and interest payment of about $1,770 per month. Adding property tax at 1.1% and $1,500 a year for insurance brings the total to roughly $2,216 a month.
How much interest will I pay over the life of the loan?
On that same example you would pay about $357,125 in interest over 30 years, on top of the $280,000 borrowed. A shorter term, such as 15 years, raises the monthly payment but cuts the total interest dramatically.
What is a good down payment?
Many lenders ask for at least 3.5% to 5% down, and 20% avoids private mortgage insurance on most conventional loans. A larger down payment lowers your monthly payment and total interest, but keep enough cash back for moving costs and emergencies.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan usually has a lower interest rate and far less total interest, but a much higher monthly payment. A 30-year loan is easier on your monthly budget and gives you flexibility, and you can still make extra payments when you can afford to.
What is not included in this estimate?
Private mortgage insurance, closing costs, mortgage points, and any change in your property tax or insurance in future years are not included. Ask your lender for a loan estimate to see your exact figures.
How much house can I afford?
A common guideline is to keep total housing costs to about 28% of gross monthly income, and total debt payments to about 36%, though lenders vary. For the $350,000 example above, the monthly payment of $2,216 would suggest income of roughly $94,955 a year under the 28% guideline.
Is it better to put down 20%?
A 20% down payment usually avoids private mortgage insurance and gives a lower payment. In the example, moving from 5% to 20% down lowers the monthly principal and interest from $2,102 to $1,770. A smaller down payment can still make sense if it keeps you from using up your savings.
How much interest do I save by paying extra each month?
Extra payments go straight to principal, which reduces the balance that interest is charged on. The savings are largest when extra payments start early in the loan, because that is when most of each regular payment is interest.
About this tool
This calculator estimates your monthly mortgage cost using the standard amortisation formula, then adds property tax, home insurance and HOA fees. Change the down payment, rate and term to see how each one affects your monthly payment and the total interest you would pay.
Worked example
Take a $350,000 home with 20% down ($70,000), a 6.5% interest rate and a 30-year term. The loan is $280,000. The standard amortisation payment is about $1,770 a month for principal and interest. Property tax at 1.1% of the price adds $321 a month, and $1,500 of yearly insurance adds $125, so the total monthly payment is about $2,216.
Over the full term you would pay $637,125 in principal and interest, which means about $357,125 of interest on a $280,000 loan. In the first month, $1,517 of your $1,770 payment is interest and only $253 reduces the balance.
How the down payment changes the payment
| Down payment | Loan amount | Principal and interest | Total monthly payment |
|---|---|---|---|
| 5% ($17,500) | $332,500 | $2,102 | $2,547 |
| 10% ($35,000) | $315,000 | $1,991 | $2,437 |
| 20% ($70,000) | $280,000 | $1,770 | $2,216 |
| 30% ($105,000) | $245,000 | $1,549 | $1,994 |
A larger down payment reduces the loan and so reduces interest. Lenders also often require private mortgage insurance on loans with less than 20% down, which this calculator does not include.
How the interest rate changes the payment
| Interest rate | Principal and interest | Total interest over the loan |
|---|---|---|
| 5% | $1,503 | $261,116 |
| 5.5% | $1,590 | $292,331 |
| 6% | $1,679 | $324,347 |
| 6.5% | $1,770 | $357,125 |
| 7% | $1,863 | $390,625 |
| 7.5% | $1,958 | $424,808 |
Even half a percentage point matters over 30 years. Going from 6.5% to 7% adds about $93 a month, or about $33,500 over the full term.
15, 20 or 30 years?
| Term | Principal and interest | Total interest | Interest as a share of the loan |
|---|---|---|---|
| 15 years | $2,439 | $159,038 | 57% |
| 20 years | $2,088 | $221,025 | 79% |
| 30 years | $1,770 | $357,125 | 128% |
A shorter term costs much less in interest but has a higher monthly payment. The 30-year loan has the lowest payment, which is why it is the most common choice, while the 15-year loan saves $198,086 in interest in this example.
Why equity builds slowly at first
In the early years most of each payment goes to interest. Because interest is charged on the remaining balance, the share going to principal grows over time.
| After year | Balance remaining | Share of loan repaid |
|---|---|---|
| 1 | $276,870 | 1% |
| 5 | $262,111 | 6% |
| 10 | $237,373 | 15% |
| 15 | $203,166 | 27% |
| 20 | $155,863 | 44% |
| 25 | $90,452 | 68% |
After five years of payments you have repaid only about 6% of this loan. Extra payments toward principal early in the term save the most interest.
Costs not included here
- Private mortgage insurance if your down payment is under 20%.
- Closing costs, typically a few percent of the loan, paid when you buy.
- Maintenance and repairs. Many owners budget around 1% of the home's value a year.
- Changing taxes and insurance. Property tax and insurance can rise, so your monthly payment may change even with a fixed-rate loan.
Lender quotes will differ from this estimate. It is an illustration and not financial advice.