Quick answer: Mortgage Calculator is a free online tool that lets you plan your home purchase with confidence. Enter the price, down payment, rate and term to see monthly principal & interest, total interest and a yearly payoff schedule. No account or install needed — it runs entirely in your browser, free.
Plan your home purchase with confidence. Enter the price, down payment, rate and term to see monthly principal & interest, total interest and a yearly payoff schedule.
What is the Mortgage Calculator?
A mortgage calculator estimates the monthly principal-and-interest payment on a home loan using standard amortization: the same reducing-balance math as any EMI, applied to a 15- or 30-year term. On a $350,000 home with 20% down at 6.5% over 30 years, the monthly P&I is about $1,770 — and total interest exceeds $357,000, more than the loan itself.
This free mortgage calculator focuses on P&I and adds a yearly schedule showing how slowly the balance falls in the early years. Remember the full housing payment (PITI) also includes property tax, homeowner’s insurance and possibly PMI if your down payment is under 20% — budget those separately on top of the P&I figure.
The schedule table is the eye-opener: in year one, most of each payment is interest. That is why extra principal payments early in a mortgage are so powerful, and why comparing 15- versus 30-year terms side by side often changes buyers’ minds about how much house to buy.
Finally, remember that a mortgage is a long partnership with a lender, not just a rate. Customer service quality, fee transparency and flexibility on extra payments matter over 30 years. Get quotes from at least three lenders, compare APRs rather than note rates, and never let urgency override the math this calculator lays bare.
How to use the Mortgage Calculator
Enter the home’s purchase price.
Enter your down payment as a percentage of the price.
Enter the annual mortgage rate you were quoted or are modeling.
Choose the loan term — 30 years is standard, 15 builds equity faster.
Click Calculate and compare P&I, total interest and the yearly schedule.
Mortgage Calculator use cases
House hunting budget
Work backward from an affordable monthly payment to a price range. If $2,000/month P&I is your ceiling at current rates, the calculator shows the max price for each down payment level — keeping your search grounded in reality, not wishful thinking.
15 vs 30 year decision
Run both terms on the same loan. The 15-year payment is higher but total interest is often less than half — seeing the exact lifetime difference turns an abstract trade-off into a concrete dollar decision.
Refinance analysis
Model your remaining balance at a new rate and term to see the monthly saving and break-even point against closing costs. A lower rate that extends the term can cost more overall, which the total-interest comparison reveals.
Extra payment planning
Study the early-year schedule rows to see how interest-heavy they are, then model the effect of adding a fixed extra amount to principal each month. Even $200 extra can cut years off a 30-year loan.
Tips
P&I is only part of PITI — add tax, insurance and PMI to the monthly figure.
Below 20% down usually means PMI; 20% avoids it.
Compare lenders on APR, which includes fees — not just the note rate.
For informational purposes only; not mortgage or financial advice.
Frequently asked questions
How is a mortgage payment calculated?
Monthly principal and interest uses the standard amortization formula based on loan amount, monthly rate, and number of payments. A $280,000 loan at 6.5% over 30 years (360 payments) gives about $1,770/month. This calculator applies the formula and builds the full yearly payoff schedule so you can see how each payment splits. The yearly schedule table shows exactly how much of each year’s payments went to interest versus principal.
What is PITI?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly housing payment. This calculator computes the PI portion. Property taxes and homeowner’s insurance are usually escrowed monthly by the lender, and PMI applies when the down payment is under 20%. Lenders quote the PI payment, but your actual monthly check includes the escrowed extras — always budget for the full PITI.
How much house can I afford?
The common rule: PITI should not exceed 28% of gross monthly income, with total debts under 36%. On $8,000/month income, that is roughly $2,240 for PITI. Use this calculator to convert that payment into a price at current rates, then see the loan affordability calculator for the full debt-to-income analysis. Online pre-qualification tools use the same ratios, so arriving with your numbers computed puts you ahead.
Is a 15-year or 30-year mortgage better?
A 15-year loan costs dramatically less in total interest; a 30-year loan has lower monthly payments and more flexibility. At 6.5% on $280,000, the 30-year costs about $357,000 in interest versus about $159,000 on a 15-year — roughly a $198,000 difference for about $670 more per month. Compare both in the calculator before deciding. That $198,000 gap is why financial advisors often favor the 15-year term for buyers who can afford the payment.
What is PMI and how do I avoid it?
Private mortgage insurance protects the lender when your down payment is below 20%, typically costing 0.5–1.5% of the loan per year. You avoid it with 20% down, or can request cancellation once you reach 20% equity (it drops automatically at 22% for conventional loans). Factor PMI into affordability until it falls off. PMI typically costs $100–$300 per month on a standard loan, so reaching 20% equity pays off quickly.
Should I make extra mortgage payments?
Extra principal payments early in the loan save the most interest, because they shrink the balance future interest accrues on. Even one extra payment per year can cut about 4 years off a 30-year mortgage. Confirm there is no prepayment penalty, and weigh it against higher-interest debt and retirement savings first. Check whether your lender applies extra payments to principal automatically; some require you to specify it.
Fixed vs adjustable-rate mortgage — which is better?
Fixed rates offer payment certainty for the whole term; ARMs start lower but adjust with market rates after the fixed period. ARMs can make sense if you will sell or refinance before adjustment. This calculator models fixed rates — for ARMs, rerun it at the adjusted rate to stress-test the worst case. Hybrid ARMs (like 5/1 or 7/1) are the most common adjustable products; know your adjustment caps before signing.