Mortgage Calculator
Buying a home is one of the biggest financial decisions most people ever make.
Our Mortgage Calculator is designed to turn all the confusing numbers into a
simple, clear monthly payment estimate. Enter the home price, your down payment,
the annual interest rate, and the length of the loan, and the tool instantly
shows you how much you can expect to pay each month and how much interest you’ll
pay over the life of the mortgage.
What this Mortgage Calculator does
This calculator uses a standard amortizing loan formula to estimate:
- Loan Amount – the home price minus your down payment.
- Monthly Payment – the fixed payment you make every month.
- Total Paid – the sum of all payments made over the entire term.
- Total Interest – how much you pay in interest on top of the amount borrowed.
The goal is to help you understand whether a specific home price and mortgage
term fit comfortably within your budget before you start the buying process.
How to use the Mortgage Calculator
-
Enter the Home Price
Type the full purchase price of the property you are considering. This is usually
the advertised listing price or the amount you plan to offer. -
Enter your Down Payment
Add the amount of money you plan to pay upfront from your own savings. A larger
down payment means a smaller loan amount and usually a lower monthly payment. -
Set the Annual Interest Rate (%)
Use the interest rate offered by your bank or lender. If you are only at the
research stage, you can try a few different rates to see how they affect the
payment. -
Choose the Term (years)
This is the length of the mortgage in years, such as 15, 20, or 30 years.
Shorter terms generally mean higher monthly payments but much less interest paid overall. -
Click “Calculate”
The calculator will instantly show the loan amount, your estimated monthly payment,
the total amount you will pay back, and how much of that total is interest.
Understanding your results
Loan Amount
The loan amount is the part of the home price that you are financing with the bank.
It is calculated as:
Loan Amount = Home Price − Down Payment.
This is the base for all interest calculations.
Monthly Payment
The monthly payment is a fixed amount that includes both principal (the money you borrowed)
and interest (the cost of borrowing). Because the loan is amortized, each payment is the
same amount, but over time a larger share goes toward the principal and a smaller share
goes toward interest.
Total Paid
This number shows the full amount you will pay to the lender over the entire term of the
mortgage, assuming you make every payment on time and do not pay off the loan early.
It is simply the monthly payment multiplied by the total number of payments.
Total Interest
Total interest tells you how much the mortgage actually costs you beyond the price of the home.
It is calculated as:
Total Interest = Total Paid − Loan Amount.
Seeing this value often motivates borrowers to compare shorter terms or lower interest rates.
Why use a Mortgage Calculator before you buy?
- Plan a realistic budget: Quickly see whether a specific home price fits into your monthly budget.
- Compare different scenarios: Test different interest rates, terms, and down payments to find the best combination.
- Avoid surprises: Understand the long-term cost of a mortgage before you sign any contract.
- Negotiate with confidence: Go into talks with lenders and sellers knowing exactly what you can afford.
Example: How the Mortgage Calculator can help
Imagine you are looking at a home priced at $350,000. You plan to put down $50,000,
your lender offers a 5% annual interest rate, and you choose a 30-year term. After
entering these values and clicking “Calculate,” the tool will show the loan amount of
$300,000, your estimated monthly payment, the total paid over 30 years, and the total
interest. By changing the term to 20 years or increasing the down payment, you can see
how your monthly payment and total interest change instantly.
Frequently asked questions
Does this calculator include taxes and insurance?
No. This tool focuses on the mortgage itself: principal and interest. Property taxes,
homeowners insurance, and other fees vary by location and lender, so you should add those
on top of the monthly payment shown here for a complete picture.
Can I use the Mortgage Calculator for refinancing?
Yes. You can use the same fields with your remaining loan balance as the “Home Price” and
enter the new interest rate and term you are considering. The results will help you see
whether refinancing reduces your monthly payment or total interest.
What term should I choose?
There is no single “best” term. A shorter term means higher monthly payments but a much
lower total interest cost. A longer term keeps the monthly payment lower but increases
the total amount of interest you pay. The calculator lets you compare both options in seconds.
How accurate are the results?
The results are estimates based on the numbers you enter and assume fixed interest rates
with regular payments. Your actual mortgage offer may include additional fees or conditions,
so always review the details with your lender before making a final decision.
Why is my monthly payment higher than I expected?
Even a small change in interest rate or term length can have a big impact on monthly
payments and total interest. Try adjusting the rate, term, or down payment to see how
each factor changes your results and find a payment amount that fits your budget.
Use this Mortgage Calculator as your first step toward home ownership. Experiment with
different scenarios, discover what you can comfortably afford, and go into your next
conversation with a lender feeling informed and prepared.