Mortgage Calculator

Monthly payment, total interest and full cost of a home loan.

Mortgage Calculator

Worked example result

Loan amount	$300,000
Monthly payment (principal & interest)	$1,798.65
Monthly tax, insurance & HOA	$0.00
Total monthly payment	$1,798.65
Total interest over the term	$347,515
Total cost (down payment + all payments)	$722,515

A $375,000 home with 20% down at 6% for 30 years costs $1,798.65 per month in principal and interest — $347,515 of interest over the life of the loan.

Work out exactly what a home loan will cost: the monthly principal-and-interest payment, how much interest you will pay over the full term, and the total monthly outlay once property tax, insurance and HOA dues are included.

The payment uses the standard amortization formula, the same one lenders use, so the figures match a lender's quote for a fixed-rate loan.

The formula

M = P · r(1+r)^n / ((1+r)^n − 1), where r = annual rate ÷ 12 and n = years × 12

Worked example

A $375,000 home with 20% down at 6% for 30 years costs $1,798.65 per month in principal and interest — $347,515 of interest over the life of the loan.

The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.

Frequently asked questions

How much house can I afford?

A common guideline is that your total monthly housing cost should stay below about 28% of your gross monthly income. Enter a home price, then compare the total monthly payment here with your budget.

Does a shorter term really save that much?

Yes. A 15-year term at the same rate has a higher monthly payment but dramatically less total interest, because you pay the balance down faster and at the same rate for half the time.

What is included in the total monthly payment?

Principal and interest, plus property tax, home insurance and HOA dues if you enter them. Many lenders collect tax and insurance monthly in escrow.

Category: Finance calculators

Mortgage Calculator