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Mortgage Calculator

Enter your loan details to instantly see your monthly payment, total cost, and a year-by-year amortization breakdown. See how extra payments save you money.

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How to use Mortgage Calculator

This mortgage calculator estimates your monthly principal-and-interest payment and shows the full cost of a home loan over its lifetime. Add a down payment, property taxes, insurance and HOA fees for an all-in monthly figure, then use the amortization schedule and balance chart to see exactly how much goes to interest versus principal each year. Model extra payments to find out how much interest you could save and how many years you could cut from your term.

  1. Enter the home price (or loan amount) and your down payment.
  2. Set the annual interest rate and loan term (commonly 15 or 30 years).
  3. Optionally add property tax, home insurance, PMI and HOA for a true monthly cost.
  4. Add an extra monthly payment to see interest saved and a shorter payoff date.
  5. Review the payment breakdown, balance-over-time chart and year-by-year schedule.

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How the monthly payment is calculated

A fixed-rate mortgage payment is computed with the standard amortization formula M = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ], where P is the principal (loan amount minus down payment), r is the monthly interest rate (annual rate ÷ 12) and n is the total number of monthly payments (years × 12). Early payments are mostly interest; as the balance falls, more of each payment goes to principal — which is why the balance curve starts shallow and steepens over time.

Principal, interest, taxes and insurance (PITI)

Lenders look at your total monthly housing cost, often abbreviated PITI: principal, interest, property taxes and homeowners insurance. If your down payment is under 20%, most conventional loans also add private mortgage insurance (PMI) until you reach about 20% equity. Many buyers also pay HOA dues. Including these gives a realistic "out-the-door" monthly number rather than principal and interest alone.

Typical mortgage cost components
ComponentWhat it coversTypical range
Principal & interestRepaying the loan plus the cost of borrowingLargest portion
Property taxLocal government tax on the home0.3%–2.2% of value/yr
Home insuranceProtects the structure and belongings$1,000–$3,000/yr
PMIRequired when down payment < 20%0.3%–1.5% of loan/yr
HOACommunity/condo association dues$0–$700/mo

How extra payments save money

Any amount paid above the scheduled payment goes straight to principal, which reduces the balance that future interest is charged on. Even a small recurring extra payment can shorten a 30-year loan by several years and save tens of thousands in interest. Use the extra-payment field to compare scenarios side by side.

Worked examples

30-year loan

Inputs: $300,000 · 6.5% · 30 yr · $60k down

Result: $1,517/mo P&I · ~$306k total interest

With $200 extra/mo

Inputs: same loan + $200 extra monthly

Result: Pay off ~6 years early · save ~$78k interest

Glossary

Amortization
The schedule by which a loan is repaid through regular payments split between principal and interest.
APR
Annual percentage rate — the yearly cost of the loan including certain fees, useful for comparing offers.
Escrow
An account your lender uses to collect and pay property taxes and insurance on your behalf.
PMI
Private mortgage insurance, charged when the down payment is below ~20% of the home price.
Principal
The amount you actually borrowed, separate from the interest charged on it.

Related reading

Frequently Asked Questions

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Why use Mortgage Calculator?

  • Transparent formulas so you understand every calculation
  • Supports multiple currencies and regional tax rules
  • Saves you from spreadsheet errors with validated inputs
  • Shareable results for discussions with advisors or partners

Common use cases

  • Calculate how long to pay off a credit card balance
  • Model different mortgage scenarios before house hunting
  • Forecast investment growth with compound interest
  • Break even analysis for a new product or service
  • Compare net salary after tax across different countries

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