Mortgage Calculator
Calculate your monthly payment and see the full amortization schedule
How to Use the Mortgage Calculator
This free mortgage calculator helps you understand the true cost of your home loan. Enter your home price, down payment, interest rate, and loan term to see your monthly payment, total interest, and complete amortization schedule.
Understanding Your Monthly Payment
Your monthly mortgage payment consists of principal (the loan amount you're paying down) and interest (the cost of borrowing). Early in your loan, most of your payment goes to interest. Over time, more goes to principal as your balance decreases.
Fixed-Rate vs Adjustable-Rate Mortgages
Fixed-rate mortgages keep the same interest rate for the entire loan term (15, 20, or 30 years). Your payment never changes, making budgeting predictable.
Adjustable-rate mortgages (ARMs) like a 5/1 ARM have a fixed rate for 5 years, then adjust annually based on market rates. ARMs typically start with lower rates but carry the risk of payment increases.
The Power of Extra Payments
Even small extra payments can dramatically reduce your loan term and total interest. For example, on a $400,000 loan at 6.5%:
- $100 extra/month saves ~$50,000 in interest and pays off 4 years early
- $200 extra/month saves ~$85,000 in interest and pays off 7 years early
- $500 extra/month saves ~$140,000 in interest and pays off 12 years early
PMI: What You Need to Know
If your down payment is less than 20%, you'll pay Private Mortgage Insurance (PMI). PMI protects the lender if you default. It typically costs 0.3% to 1.5% of your loan amount annually. PMI can be removed once you reach 20% equity in your home.