Mortgage Calculator

Estimate monthly mortgage payments, interest and amortization.

  • Formula checked
  • Editorially reviewed
  • Free · no signup
  • Updated June 27, 2026

Your details

USD
USD
%

Your monthly payment

Monthly mortgage payment

$2,022.62

Principal & interest · 30 yrs

Loan amount$320,000.00
Total interest$408,142.36
Total mortgage cost$808,142.36

Key takeaway

Monthly P&I $2,022.62 · Loan $320,000.00 · Total interest $408,142.36

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Payment breakdown

The same numbers as above, shown visually so the trade-offs are easy to see.

Payment breakdown
Total mortgage cost
$808,142.36
Total interest
$408,142.36
Loan amount
$320,000.00
Balance and interest over time

Amortization schedule

Amortization schedule for Mortgage Calculator. Assumes every payment is made on time, the rate stays fixed, and no extra payments are applied.
PeriodOpening balancePaidInterestPrincipalClosing balance
Year 1$400,000$30,339$25,868$4,471$395,529
Year 2$395,529$30,339$25,569$4,770$390,759
Year 3$390,759$30,339$25,249$5,090$385,669
Year 4$385,669$30,339$24,909$5,431$380,238
Year 5$380,238$30,339$24,545$5,794$374,444
Year 6$374,444$30,339$24,157$6,182$368,261
Year 7$368,261$30,339$23,743$6,596$361,665
Year 8$361,665$30,339$23,301$7,038$354,627
Year 9$354,627$30,339$22,830$7,510$347,117
Year 10$347,117$30,339$22,327$8,013$339,105

Assumes every payment is made on time, the rate stays fixed, and no extra payments are applied.

What to do next

What this means

Monthly Mortgage Payment is $2,022.62. This is your monthly obligation and the total cost of credit at the rate and term you entered.

Is this good or bad?

A result is healthy when the payment fits comfortably inside your budget and total interest is a number you would accept in writing.

What's the risk?

The main risks are rate, term length and any balloon or prepayment terms buried in the contract.

What should you do next?

Get written quotes from three lenders and compare APR — not the advertised rate — side by side.

Your action plan

  1. 1

    Compare three written offers

    Median rate spread on the same borrower is 0.5–1.0%.

  2. 2

    Check your debt-to-income ratio

    Lenders weight it heavily; under 36% is the comfort line.

  3. 3

    Choose the shortest term you can afford

    Total interest falls sharply as the term shortens.

  4. 4

    Confirm no prepayment penalty

    It determines whether extra payments actually save you money.

  5. 5

    Run the Home Affordability Calculator

    Home price you can afford based on income and DTI.

    Open Home Affordability Calculator

Your timeline

Today

  • Save or print this result so you can compare offers against it.
  • Pull your credit report free at annualcreditreport.com.

This month

  • Collect three written loan estimates.
  • Pay down revolving balances before any hard credit pull.

Next 12 months

  • Set up autopay for the rate discount.
  • Re-check your rate if the Fed moves or your score improves.

Long term

  • Refinance when rates fall meaningfully below your current rate.
  • Redirect the payment into savings once the loan is retired.

Compare scenarios

Same inputs, three outlooks — we vary Interest rate (annual) up and down so you can see the range before you commit.

Optimistic

$1,757.15

Monthly Mortgage Payment

Interest rate (annual): 5.2%

Expected

$2,022.62

Monthly Mortgage Payment

Interest rate (annual): 6.5%

Conservative

$2,303.59

Monthly Mortgage Payment

Interest rate (annual): 7.8%

Result Intelligence

Understand your result

  • Your monthly mortgage payment is $2,022.62. It reflects your monthly obligation and total cost of credit at today's rates.
  • Small changes in rate or term can meaningfully change lifetime interest — always compare offers.

What should you do next?

  1. Debt-to-Income Calculator

    Check whether lenders will approve you.

  2. Credit Utilization Calculator

    Lower utilization can improve your APR.

  3. Affordability Calculator

    See the maximum loan you should carry.

  4. Compound Interest Calculator

    Compare paying debt vs. investing the difference.

Ways to improve your result

  • Shop 3+ lenders — median rate spread on the same borrower is 0.5–1.0%.
  • Choose a shorter term when cash flow allows — total interest drops sharply.
  • Autopay usually earns a 0.25% rate discount.

Common U.S. scenarios

Texas family

$95k household income, two auto loans. Refinancing a 22% APR card into a 5-year 11% personal loan saves ~$4,200 in interest.

California renter

Single filer earning $110k in LA — a 45% DTI locks out most conventional mortgages until credit-card debt is paid down.

Florida retiree

Fixed Social Security + pension. Keeping utilization under 10% preserves the 780+ FICO needed for the best HELOC rates.

Your result

Monthly Mortgage Payment
$2,022.62
Loan Amount
$320,000.00
Total Interest
$408,142.36
Total Mortgage Cost
$808,142.36

Monthly P&I $2,022.62 · Loan $320,000.00 · Total interest $408,142.36

What this result assumes

Confidence in a number depends on the assumptions behind it. Here are ours, in full.

Assumptions

  • The rate you entered stays fixed for the whole period.
  • Every period is a whole calendar period of equal length.
  • Payments and contributions are made on schedule, with none missed.
  • All amounts are shown in USD.
  • Results are rounded for display; internal math uses full precision.

Limitations

Lender fees, insurance and credit-based pricing adjustments are not included unless you enter them.

Estimates are for education and planning. They are not financial, tax or legal advice.

Formula source

CFPB Truth-in-Lending (Regulation Z) amortization conventions

Version
v1.3
Last reviewed

Where to go next

Next logical calculatorHome Affordability CalculatorHome price you can afford based on income and DTI.Continue

Quick answer

What it does
Mortgage Calculator estimate monthly mortgage payments, interest and amortization. It runs entirely in your browser, needs no signup, and uses standard published U.S. formulas.
When to use
Use it while you compare homes, offers, or rental scenarios that hinge on mortgage.
Inputs
  • Home price
  • Down payment
  • Interest rate (annual)
  • Mortgage term
  • Currency
Outputs
  • Monthly Mortgage Payment
  • Loan Amount
  • Total Interest
  • Total Mortgage Cost
Takeaway
In one line: enter your home price and down payment and the Mortgage Calculator returns monthly mortgage payment and loan amount you can compare before deciding.

Last updated · 1 min read

How to read your result

Mortgage Calculator: Your result reflects the housing cost, equity, or ROI implied by the price, rate, and expenses you entered. Use it to compare properties or scenarios side-by-side.

What your result means

  • Break-even years tell you how long you need to stay in a home before buying beats renting.
  • Cash-on-cash return above 8% is generally considered a strong rental deal in most U.S. markets.
  • PMI usually drops off once you reach 20% equity — factor that into long-term costs.

How does the formula work?

Loan = Home price − Down payment. Then Monthly P&I = L × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1) — L loan, r monthly rate, n months.

How it works

This calculator shows the principal & interest (P&I) portion of your monthly mortgage payment. Property taxes, homeowners insurance and PMI are not included; we'll add those in a future update.

Step-by-step guide

  1. 1Enter the home price and down payment.
  2. 2Set your mortgage rate, term, taxes, insurance and HOA if applicable.
  3. 3Adjust rental income or growth assumptions where relevant.
  4. 4Compare monthly cost, break-even, and long-term equity.
  5. 5Copy or share results to discuss with your lender or agent.

Example calculation

Example: $400k home, 20% down, 6.5% APR, 30-year fixed.

Who should use this calculator?

  • First-time home buyers
  • Rental-property investors
  • Homeowners considering refinancing
  • Renters running a rent-vs-buy analysis

When should you use it?

  • Before making an offer on a property
  • When comparing rent vs buy in a new city
  • Before refinancing an existing mortgage
  • When evaluating a rental as an investment

What affects the result?

  • Home price and down payment
  • Mortgage rate, term and PMI
  • Property taxes, insurance and HOA fees
  • Local appreciation and rent-growth assumptions

Compare three scenarios

Three realistic scenarios compared side by side
ScenarioInputsOutcome
Low down payment$400k, 5% down, 7% APR + PMI~$3,050/mo all-in, breaks even in ~8 yrs
Standard 20% down$400k, 20% down, 7% APR~$2,550/mo, no PMI, breaks even in ~5 yrs
Large down payment$400k, 40% down, 7% APR~$1,900/mo, lower risk, breaks even in ~4 yrs

Illustrative examples using U.S. market averages. Enter your own numbers above for a personalized figure.

Comparison tables

Fixed vs Variable Rate: Which Costs Less?

Fixed rates lock your payment for the life of the loan. Variable (adjustable) rates start lower but move with an index such as SOFR or the Prime Rate published by the Federal Reserve.

Fixed vs Variable Rate: Which Costs Less?
FactorFixed rateVariable / adjustable rate
Starting rate (2025 typical)Higher — around 0.25%–0.75% above the intro ARM rateLower teaser rate for 3, 5, 7 or 10 years
Payment stabilityIdentical principal & interest every monthResets at each adjustment period, subject to caps
Best whenYou keep the loan more than 5–7 years, or rates are falling slowlyYou expect to sell, refinance or pay off before the first reset
Worst caseYou overpay if market rates drop and you never refinancePayment shock at reset — caps commonly allow +2% per adjustment, +5% lifetime
Disclosure ruleAPR disclosed under Regulation Z (Truth in Lending)CFPB requires a Consumer Handbook on Adjustable-Rate Mortgages (CHARM) booklet

Bottom line: Run both scenarios in the calculator. If the total interest paid over your expected holding period is within about 1% of each other, take the fixed rate — the certainty is worth more than the small savings.

Buying vs Renting a Home in the USA

Homeownership builds equity but carries costs renters never see. HUD and the CFPB both recommend comparing the full monthly cost of ownership, not just the mortgage payment.

Buying vs Renting a Home in the USA
FactorBuyingRenting
Upfront cash3%–20% down plus 2%–5% closing costsFirst month plus a security deposit
Monthly costPrincipal, interest, property tax, insurance, HOA, PMI (PITI)Rent plus renters insurance
MaintenanceBudget 1%–2% of home value per yearLandlord's responsibility
Tax benefitMortgage interest and property tax deductible if you itemize (IRS Pub. 936)No federal deduction
Break-even horizonTypically 4–7 years before ownership winsCheaper below the break-even horizon; full mobility

Bottom line: Ownership usually wins once you pass the break-even horizon and stay put. Below it, renting and investing the difference commonly produces more net worth.

Decision guide

Should I Buy or Keep Renting?

HUD and CFPB guidance points at four gating questions.

  1. 1Will you stay in the area at least 5 years?

    Yes: Continue.

    No: Rent. You likely will not clear transaction costs.

  2. 2Do you have the down payment plus 3–6 months of expenses left over?

    Yes: Continue.

    No: Rent and keep building reserves — closing wipes out thin savings.

  3. 3Is total PITI (plus HOA and maintenance) under 28% of gross monthly income?

    Yes: Continue.

    No: Lower the price target or wait — you would be cost-burdened.

  4. 4Is your job and income stable, with a DTI under 43%?

    Yes: Buy.

    No: Rent until income stabilizes.

Bottom line: Buy when time horizon, reserves, payment ratio and income stability all pass. Any single failure favors renting.

Common mistakes to avoid

  • Underestimating closing costs, insurance, and property taxes.
  • Comparing rent to a mortgage payment only (ignore maintenance & opportunity cost).
  • Assuming linear price growth over decades.

Pro tips

  • Budget 1–2% of the home value per year for maintenance in addition to the mortgage.
  • Don't forget PMI when the down payment is under 20%.
  • Rerun the numbers with a realistic property-tax and insurance figure for your county.

Why use this calculator

  • Full PITI breakdown including taxes, insurance, PMI and HOA.
  • Rent-vs-buy and refinance scenarios calculated with real closing costs.
  • Transparent formulas that match what your lender or agent will show.
  • Works for primary homes, rentals and investment properties.

Limitations to keep in mind

  • Property taxes, insurance and HOA vary widely by county and building.
  • Home appreciation is an assumption — past performance does not guarantee future results.
  • Does not include closing costs, points or seller concessions unless entered.
  • Not an appraisal, mortgage pre-approval or investment recommendation.

Key terms explained

LTV (Loan-to-Value)
The mortgage amount divided by the appraised home value. LTV above 80% typically triggers PMI on conventional loans.
PMI (Private Mortgage Insurance)
A monthly premium required when your down payment is under 20% on a conventional loan. It usually drops off automatically once you reach 22% equity.
Closing costs
One-time fees paid at settlement — typically 2–5% of the purchase price for buyers (appraisal, title, taxes, origination).
Cap rate
Net operating income divided by property value. A common rental-property yield metric — 5–10% is typical in most U.S. markets.
Cash-on-cash return
Annual pre-tax cash flow divided by total cash invested. Measures the actual return on the money you put in.

Before you decide

  • Get a pre-approval letter with the exact rate and lender fees itemized.
  • Budget for closing costs (2–5% of price) and 6 months of housing reserves.
  • Order an independent inspection — never rely on the seller's disclosure alone.
  • Verify property tax, HOA, and insurance quotes with the actual providers, not estimates.

Official Sources & References

The formulas, rates and definitions used by this calculator are aligned with the following official sources:

We use only primary sources — regulators, standards bodies and scheme operators. See our full sourcing policy for details. Sources & References Policy · Calculator Methodology · How We Verify Formulas

Trust & Accuracy

Accuracy tested

Verified against HUD / CFPB affordability and amortisation conventions. Edge cases, formula validation and manual verification completed (last reviewed June 27, 2026).

Government source

Inputs and thresholds follow HUD, FHFA and CFPB mortgage and affordability guidance.

Educational use

This tool is provided for education and planning only. It is not financial, tax, legal or medical advice.

Available for

United States, Canada, United Kingdom, Australia, India, European Union.

Currency support

USD · INR · CAD · AUD · GBP · EUR

Privacy

No information entered into this calculator is stored on our servers unless you explicitly choose to save or share your calculation.

Print, share & save

Use the Save, Share, Copy, PDF, CSV and Print actions under the result panel.

Accessibility

Keyboard navigable, screen-reader friendly labels, responsive on mobile and desktop.

Learn more: How we verify formulas · How we test accuracy · Methodology · Editorial policy

Recent Updates

We continuously review and improve our calculators to keep formulas, assumptions and references accurate.

View change log (4)Show
  1. v1.3

    Added Trust & Accuracy panel and machine-readable change log.

  2. v1.2

    Added Save, Share, PDF, CSV and Print actions to results.

  3. v1.1

    Added global currency selector (USD, INR, CAD, AUD, GBP, EUR).

  4. v1.0

    Initial calculator release with verified formulas and Official Sources.

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Frequently Asked Questions

Related guides

In-depth real estate guides, worked examples, and expert explainers.

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What's next?

Your next step

Most people who use this calculator explore these next. Follow the path in order for a complete plan.

  1. 1Home Affordability CalculatorHome price you can afford based on income and DTI.
  2. 2Closing Costs CalculatorUS home purchase closing costs — 2-5% of price.
  3. 3PMI CalculatorMonthly Private Mortgage Insurance based on LTV.
  4. 4Amortization Schedule CalculatorBreak down each payment into principal and interest.

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Reviewed by the CreditLoanCalculator editorial team·Last reviewed ·Editorial policy·How we verify formulas
Disclaimer: Results are estimates for informational purposes only and should not be considered financial, medical, legal, or professional advice. Always consult a qualified professional before making decisions.