Mortgage Calculator
Calculate your monthly mortgage payment and see how much you will pay in total interest over the life of the loan. Adjust the home price, down payment, interest rate, and term to compare scenarios.
Monthly Payment
$2,022.62
on a $320,000.00 loan at 6.5%
| Breakdown | Amount |
|---|---|
| Home Price | $400,000.00 |
| Down Payment | $80,000.00 |
| Loan Amount | $320,000.00 |
| Monthly Payment | $2,022.62 |
| Total Repaid | $728,143.20 |
| Total Interest | $408,143.20 |
| LTV | 80% |
How Mortgage Payments Work
A fixed-rate mortgage uses the amortization formula to calculate equal monthly payments over the loan term. Each payment covers interest on the remaining balance plus a portion of principal. Early in the loan, most of each payment goes to interest. Over time, more goes to principal as the balance decreases.
For example, on a $320,000 loan at 6.5% over 30 years, your monthly payment is about $2,023. In the first month, roughly $1,733 goes to interest and only $290 to principal. By year 15, the split is roughly equal.
30-Year vs 15-Year Comparison
On a $320,000 loan at 6.5%: a 30-year mortgage costs $2,023/month ($728,280 total, $408,280 interest). A 15-year at 5.8% costs $2,680/month ($482,400 total, $162,400 interest). The 15-year saves $245,880 in interest but costs $657 more per month.
Frequently Asked Questions
How is my monthly mortgage payment calculated?
Monthly payments are calculated using the standard amortization formula. The payment amount is fixed for the life of a fixed-rate loan, with early payments going mostly to interest and later payments mostly to principal.
What is a good down payment?
A 20% down payment avoids private mortgage insurance (PMI) and gives you better rates. However, many programs allow 3-5% down (FHA allows 3.5%). The trade-off is higher monthly payments and PMI costs.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but much lower total interest. A 30-year mortgage has lower monthly payments but you pay significantly more in interest over the life of the loan.
What is LTV?
Loan-to-value (LTV) ratio is the loan amount divided by the property value. Lower LTV means more equity and typically better rates. LTV above 80% usually requires PMI.
Does this include property taxes and insurance?
This calculator shows principal and interest only. Your actual monthly payment may also include property taxes, homeowners insurance, and PMI (often escrowed). Add 30-40% to the P&I figure for a rough total.
Important Disclaimer
The figures provided by this calculator are estimates based on the information you enter and published rates at the time of writing. They do not constitute financial, tax, or legal advice, and we accept no liability for decisions made on the basis of these estimates. Your actual liability may differ depending on your individual circumstances, applicable reliefs, and any changes to rates or legislation. Always consult a qualified professional or check the latest IRS guidance at irs.gov before making financial decisions.
Related Calculators
Salary Calculator
Calculate your US take-home pay after federal tax, state tax, and FICA.
Property Tax Calculator
Estimate annual property tax based on home value and local rates.
Self-Employment Tax
Estimate self-employment tax including Social Security and Medicare.
Sales Tax Calculator
Calculate sales tax for any US state. Add or remove tax instantly.