Mortgage Calculator
Calculate your monthly mortgage payment in seconds. See how down payment, interest rate, and loan term affect your total cost.
Home Details
Optional Costs
Monthly Payment
$1,917
Loan Amount
$240,000
20.0% down on $300,000
Total Interest
$306,107
30-year loan
Total Cost
$444,000
Including taxes & insurance
Loan Term
30 Yrs
360 monthly payments
Amortization Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $217 | $1,300 | $239,783 |
| 1 | $230 | $1,287 | $237,317 |
| 2 | $246 | $1,271 | $234,455 |
| 3 | $262 | $1,255 | $231,401 |
| 4 | $280 | $1,237 | $228,143 |
| 5 | $298 | $1,219 | $224,666 |
| 6 | $318 | $1,199 | $220,957 |
| 7 | $340 | $1,177 | $216,999 |
| 8 | $362 | $1,155 | $212,776 |
| 9 | $387 | $1,130 | $208,270 |
| 10 | $413 | $1,104 | $203,463 |
| 11 | $440 | $1,077 | $198,333 |
| 12 | $470 | $1,047 | $192,860 |
| 13 | $501 | $1,016 | $187,021 |
| 14 | $535 | $982 | $180,790 |
| 15 | $571 | $946 | $174,142 |
| 16 | $609 | $908 | $167,049 |
| 17 | $650 | $867 | $159,481 |
| 18 | $693 | $824 | $151,405 |
| 19 | $740 | $777 | $142,790 |
| 20 | $789 | $728 | $133,597 |
| 21 | $842 | $675 | $123,788 |
| 22 | $898 | $619 | $113,323 |
| 23 | $958 | $559 | $102,156 |
| 24 | $1,023 | $494 | $90,242 |
| 25 | $1,091 | $426 | $77,530 |
| 26 | $1,164 | $353 | $63,967 |
| 27 | $1,242 | $275 | $49,495 |
| 28 | $1,325 | $192 | $34,054 |
| 29 | $1,414 | $103 | $17,579 |
| 30 | $1,509 | $8 | $0 |
What is Mortgage Payments?
A mortgage is a loan used to purchase property, typically a home. The borrower agrees to repay the lender over a fixed period (usually 15–30 years) with interest. Understanding how your monthly payment is calculated is essential for homebuying. Your monthly mortgage payment includes principal (the amount borrowed), interest (the cost of borrowing), property taxes, homeowners insurance, and potentially PMI (private mortgage insurance) if your down payment is less than 20%. Property taxes and insurance vary by location and property value, making it crucial to include them in your total monthly housing cost. For example, on a $300,000 home with 20% down ($60,000), a 7% interest rate, and a 30-year loan term, your principal and interest payment would be about $1,330. Adding property taxes, insurance, and HOA fees could bring your total monthly payment to $1,800–$2,200 depending on your location.
The Mortgage Payments Formula
In this formula: • M = Monthly payment (principal and interest only) • P = Loan principal (home price minus down payment) • r = Monthly interest rate (annual rate ÷ 12, so 7% ÷ 12 = 0.00583) • n = Total number of payments (loan years × 12, so 30 years × 12 = 360) Note: This formula calculates principal and interest only. Your actual monthly payment also includes property taxes, homeowners insurance, HOA fees, and potentially PMI, which vary by property and location.
Worked Examples
Example 1: Standard 30-Year Mortgage
Scenario: Buying a $400,000 home with $80,000 down (20%), 7% interest rate, 30-year term. Loan amount (P): $320,000 Monthly rate (r): 0.07 ÷ 12 = 0.00583 Number of payments (n): 30 × 12 = 360 Principal & Interest: $2,130/month Add estimated costs: • Property tax: $400/month • Homeowners insurance: $150/month • HOA fees: $0 (or varies) Total estimated monthly payment: $2,680 Over 30 years, you'll pay approximately $766,800 total ($2,130 × 360), which means $446,800 in interest on a $320,000 loan.
Example 2: Impact of Interest Rate
Same home and down payment, but comparing two interest rates: At 6% interest: Principal & Interest: $1,916/month 30-year total: $690,240 At 8% interest: Principal & Interest: $2,348/month 30-year total: $845,280 The 2% rate difference costs you an extra $155/month, or $155,040 over 30 years. This demonstrates why even small rate differences significantly impact your long-term housing cost. Improving your credit score and getting pre-approved can help you secure the best possible rate.
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Use it →Frequently asked questions
Everything you need to know about compound interest calculations.
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest. Unlike simple interest (which is only on the principal), compound interest grows exponentially over time.
Which compounding frequency is best?
More frequent compounding (daily vs. annually) yields slightly more interest. However, the difference is small — the interest rate itself has far more impact on final results than compounding frequency.
Does this account for inflation?
No — this calculator shows nominal (not inflation-adjusted) growth. To estimate real returns, subtract the inflation rate (typically 2–3%) from your interest rate before entering it.
How accurate is this calculator?
Very accurate for standard compound interest. It uses the exact compound interest formula with monthly contributions added at each compounding interval. Results may differ slightly from bank statements due to rounding.
What's the difference between annual and monthly compounding?
Annual compounding calculates interest once a year. Monthly compounding calculates it 12 times per year, and each calculation includes previously earned interest. Daily compounding does this 365 times. More frequent compounding = slightly more interest, but the effect is usually small compared to the interest rate itself.
Why isn't my bank balance matching the calculator?
Common reasons: Your bank may compound on a different schedule than you selected, fees reduce your balance, or the rate isn't fixed (it changed during the period). Also, banks often round to the nearest cent, which can create small discrepancies over time. This calculator assumes consistent interest rates and no fees.
What's a common mistake people make with compound interest?
Underestimating how powerful time is. Many people think starting late with larger amounts beats starting early with smaller amounts—it doesn't. A 25-year-old investing $100/month beats a 45-year-old investing $500/month. Also, people often don't account for how quickly debt compounds against them (credit cards, loans).
Can I use this to calculate investment returns?
Yes, if your investment has a consistent annual return rate. However, stocks and mutual funds don't have guaranteed returns—they fluctuate. Use this calculator to see potential returns under a given scenario, but understand that actual results will vary. For conservative planning, use a lower rate than historical averages.
How do I account for taxes on my earnings?
This calculator shows pre-tax results. To estimate after-tax returns, multiply the interest earned by (1 - your tax rate). For example, if you earned $1,000 in interest and your tax rate is 24%, you'd keep about $760. Tax-advantaged accounts (401k, Roth IRA) don't require this adjustment during accumulation.