Mortgage Calculator
Calculate monthly mortgage payments, total interest, and amortization for home loans.
How it works
A mortgage calculator answers one question precisely: given an amount borrowed, an interest rate, and a term, what is the fixed monthly payment that retires the debt exactly on schedule? The formula is M = P x r(1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly rate (annual rate divided by 12), and n is the total number of payments.
What surprises most first-time buyers is the shape of that payment. Early instalments are overwhelmingly interest, because interest is charged on the outstanding balance and the balance starts at its maximum. The principal portion grows every month and only crosses the halfway mark years in. This is why paying a little extra in the first years removes far more total interest than the same amount paid later — an extra payment early erases principal that would otherwise have accrued interest for the remaining decades.
The figure this calculator returns is principal and interest only. Your actual monthly outlay also includes property taxes, homeowners insurance, any HOA dues, and private mortgage insurance if you put down less than 20%. Together these commonly add a meaningful fraction on top, and they vary by parcel rather than by loan, so no calculator can infer them from the loan terms alone. Treat the result as a floor.
Two inputs move the answer more than people expect. Term is one: a 15-year loan raises the monthly payment substantially but cuts total interest dramatically, because the balance is exposed for half as long. Rate is the other, and its effect compounds with loan size — the same 0.5% difference costs far more on a large loan than a small one. Run both variations before fixing on a number. Everything runs in your browser — no login, no upload, and no figure you enter leaves the page.
FAQ
What does this mortgage calculator include?
Principal and interest only. Property taxes, homeowners insurance, HOA dues, and PMI are excluded because they depend on the specific property and your down payment rather than on the loan terms.
Why is so much of my early payment going to interest?
Interest is charged on the outstanding balance, which is highest at the start. The payment stays level, so as the balance falls the interest portion shrinks and the principal portion grows. The crossover typically takes many years on a 30-year loan.
Should I choose a 15-year or 30-year term?
A 15-year term raises the monthly payment but sharply reduces total interest, since the balance is outstanding for half as long. A 30-year term lowers the payment and increases flexibility. Enter both and compare the total interest figures.
How much does an extra monthly payment save?
More than most expect, and most of all when made early. Extra payments reduce principal directly, eliminating all future interest that principal would have accrued. The same payment made in year twenty saves comparatively little.
Mortgage Calculator in other locations
More Toolular
Disclaimer: MoneyCalc provides estimates for educational purposes. These are not financial advice. For significant decisions, consult a licensed financial advisor or tax professional.