How to use this mortgage calculator
Enter your home price, down payment, current interest rate, and loan term to instantly see your estimated monthly payment. The calculator breaks down principal and interest, shows your total interest cost over the loan life, and lets you compare a 15-year vs. 30-year mortgage side by side.
Frequently asked questions
What's included in my monthly payment?
The calculator shows your principal & interest (P&I) payment plus estimated property taxes and homeowner's insurance — often called PITI. Private mortgage insurance (PMI) is not included; lenders typically require PMI when your down payment is below 20%.
Should I choose a 15 or 30 year mortgage?
A 30-year mortgage offers lower monthly payments, giving you more cash flow flexibility. A 15-year mortgage typically carries a lower interest rate and you'll pay significantly less interest overall — but your monthly payment will be higher. Use the comparison table above to see the exact difference for your numbers.
How does the interest rate affect my payment?
Interest rate has a dramatic effect. On a $400,000 loan over 30 years, a 1% rate increase adds roughly $240 to your monthly payment and over $85,000 in total interest. Even a 0.25% difference is worth shopping for among lenders.
What is an amortization schedule?
An amortization schedule shows every monthly payment broken into its principal and interest components. In the early years, most of your payment goes toward interest. Over time, the principal portion grows. Expanding the schedule above lets you see the exact breakdown for any month.
Tips to lower your mortgage payment
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Increase your down payment. Even going from 10% to 20% down eliminates PMI and lowers your loan amount, reducing both your monthly payment and total interest.
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Shop multiple lenders. Mortgage rates vary by 0.5–1% between lenders for the same borrower profile. Get at least 3–5 quotes within a 14-day window to minimize credit score impact.
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Improve your credit score. Borrowers with scores above 760 qualify for the best rates. Paying down revolving debt below 30% utilization is often the fastest way to boost your score.
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Make extra principal payments. Adding even $100–$200 extra per month to principal can shave years off your loan and save tens of thousands in interest.
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Consider refinancing. If rates drop 0.75% or more below your current rate, refinancing may be worth it. Use the calculator with a new rate to see your savings.
Understanding mortgage basics
A mortgage is a loan secured by real estate. Each monthly payment you make goes toward two things: principal (paying down the amount you borrowed) and interest (the cost of borrowing). In the early years of a 30-year mortgage, as much as 80–85% of your payment goes toward interest — this is why the amortization schedule is so eye-opening for first-time buyers.
Your actual out-of-pocket housing cost will also include property taxes, homeowner's insurance, and potentially homeowner's association (HOA) fees and private mortgage insurance (PMI). Lenders use your debt-to-income ratio (DTI) to determine how much you can borrow — most conventional loans require a back-end DTI below 43%, though some programs allow up to 50%.