Mortgage Calculator
Estimate your monthly mortgage payment, total interest over the life of the loan, and a year-by-year amortization summary.
This calculator provides estimates only and is not financial advice. Consult a qualified financial advisor for personalized guidance.
How to use this calculator
Enter the loan amount, annual interest rate, and loan term in years, then click Calculate Payment. The results show your monthly payment, total interest over the life of the loan, and total payment, along with a year-by-year amortization summary showing how much of your payment goes to principal versus interest each year and your remaining loan balance. This calculator covers principal and interest only — it does not include property taxes, homeowners insurance, or PMI.
How is this calculated?
This calculator uses the standard loan amortization formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1), where M is the monthly payment, P is the loan principal, r is the monthly interest rate (your annual rate divided by 12), and n is the total number of monthly payments (loan term in years × 12). Each month, part of your payment covers interest on the remaining balance and the rest reduces the principal — early payments are interest-heavy, and later payments are increasingly principal-heavy. That shifting split is what the amortization summary above shows year by year.
Worked example: $350,000 at 6.5%
With the calculator's default inputs ($350,000 borrowed at 6.5% for 30 years), the monthly principal-and-interest payment is $2,212.24. Over 360 payments you pay $446,406 in interest, more than the amount borrowed. The first payment is mostly interest: $1,895.83 goes to interest and only $316.40 reduces the loan. After five years (60 payments) the balance is still about $327,638. You have paid down $22,362 of principal and $110,373 of interest.
The same loan over 15 years costs $3,048.88 a month, $836.64 more, but total interest drops to $198,798. That saves $247,608 over the life of the loan, which is why the term is usually a bigger decision than a small difference in rate.
What your real monthly payment adds on top
The figure above is principal and interest only. A lender's monthly bill is usually "PITI": principal, interest, property taxes and homeowners insurance, often collected into an escrow account. On a conventional loan with less than 20% down, lenders typically add private mortgage insurance (PMI) until you reach enough equity, and a condo or planned community may add HOA dues. Ask the lender for a Loan Estimate, which lists each of these, and add them to the number here before deciding what you can afford.
Related calculators on this site
This mortgage calculator works in US dollars with a term in years and a yearly amortization summary. The math is the same annuity formula as an Indian home-loan EMI, but for a loan in rupees, with extra monthly prepayments or a side-by-side comparison of three interest rates, use the Advanced Home Loan Calculator. The home loan EMI guide shows how prepayments and rate changes play out over a full loan.
Frequently Asked Questions
How much house can I afford?
A common guideline is to keep your total monthly housing cost at or below 28% of your gross monthly income. Enter a few loan amounts into the calculator above to see how the monthly payment changes, and compare that figure against your budget — remember this tool only covers principal and interest, not taxes, insurance, or PMI.
What is a good mortgage interest rate?
A "good" rate depends on the current market, your credit score, loan type, and down payment size — it changes frequently, so there is no fixed number that is always good. To judge an offer, get Loan Estimates from several lenders within a few days of each other, so they all price the same market, and compare the rate and the APR line by line.
Should I enter the interest rate or the APR from my loan offer?
The interest rate. The monthly payment is worked out from the loan’s interest rate (sometimes called the note rate). The APR is usually a little higher because it spreads fees such as points and origination charges across the loan, so entering it here would overstate the payment. A US Loan Estimate shows both figures: the interest rate on page 1 and the APR on page 3.