Mortgage Calculator
Estimate your monthly mortgage payment based on home price, down payment, loan term, and interest rate.
How to Use This Calculator
Enter the total price of the home you want to buy. Set your down payment as a percentage of the price — most lenders require between 3% and 20%. Choose your loan term (15 and 30 years are the most common options). Enter the annual interest rate offered by your lender. The calculator instantly shows your estimated monthly payment, total amount paid over the full life of the loan, and how much goes to interest versus principal.
How Mortgage Payments Work
A mortgage payment consists of two parts: principal (the portion that reduces your loan balance) and interest (the cost of borrowing money). In the early years of a mortgage, the majority of each payment goes toward interest. Over time, an increasingly larger share goes toward paying down the principal balance. This process is called amortization. A shorter loan term means higher monthly payments but significantly less interest paid over the life of the loan. Even a small difference in interest rate, such as half a percentage point, can save or cost tens of thousands of dollars over 15 to 30 years.