Mortgage Calculator

What is a Mortgage Calculator?

A mortgage calculator helps you estimate your monthly mortgage payments based on the loan amount, interest rate, and loan term. It also shows you the total amount of interest you'll pay over the life of the loan.

How to Use This Calculator

Enter the home price (or loan amount), down payment amount, interest rate, and loan term (typically 15 or 30 years). The calculator will instantly display your monthly payment, total interest, and total cost.

Mortgage Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:
M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Number of payments (years × 12)

Understanding Your Mortgage

When you make a mortgage payment, part goes toward principal (the loan amount) and part toward interest. Early in the loan, most of your payment goes to interest. Over time, more goes toward principal.

Tips for Homebuyers

• A larger down payment means lower monthly payments
• Shorter loan terms mean less total interest paid
• Consider getting pre-approved before house hunting
• Factor in property taxes and insurance in your budget

FAQ

What credit score do I need for the best mortgage rates?
Typically, a credit score of 740 or higher gets you the best rates, but many lenders offer options for scores as low as 620.