Mortgage Calculator

About the Mortgage Calculator

This mortgage calculator works out what a home loan actually costs you — each month, and across its whole life. Enter the home price, your down payment, the interest rate and the term, and it returns your monthly principal and interest payment, the total interest you will pay, and a year-by-year amortization schedule showing how the balance falls.

Tick the extras option and it folds in property tax, home insurance, HOA fees and PMI, so the figure you see is your real monthly outgoing rather than principal and interest alone. That distinction matters more than most people expect: a payment quoted as “$1,517 a month” is usually principal and interest only, and the true cost once escrow is added is often $400–$700 higher.

Some people search for it as a mortgage (mtg) calculator or a house payment calculator — it is the same tool. Everything runs in your browser. There is no sign-up, no email step, and nothing you type is transmitted or stored. The math is currency-neutral, so it works the same whether you are calculating in dollars, pounds, euros or rupees.

How to use the Mortgage Calculator

1. Enter the home price — the full purchase price, before any deposit.
2. Enter your down payment, either as a cash amount or a percentage. The hint underneath shows the equivalent so you can sanity-check it.
3. Enter the yearly interest rate your lender quoted, and the loan term in years.
4. Optionally tick Include property tax, insurance and HOA to see your true total monthly outgoing rather than principal and interest alone.
5. Select Calculate monthly payment. Scroll down for the amortization schedule showing how the balance falls each year.

How your monthly mortgage payment is calculated

Every fixed-rate mortgage payment comes from the same standard amortization formula:

M = P × [ r(1 + r)ⁿ ] ÷ [ (1 + r)ⁿ − 1 ]

• M — the monthly payment
• P — the principal, meaning the home price minus your down payment
• r — the monthly interest rate, which is the annual rate divided by 12
• n — the total number of payments, which is the term in years multiplied by 12

Take a $300,000 home with $60,000 down (20%) at 6.5% over 30 years. The principal is $240,000, the monthly rate is 0.0054167, and there are 360 payments. That gives a payment of $1,516.96 a month.

Over the full term you would pay $546,107, of which $306,107 is interest — more than the amount you originally borrowed. This is why small rate differences matter so much: on the same loan, a rate one point lower saves roughly $55,500 over 30 years.

The result here is an estimate. Individual lenders round differently, some use a 365/360 day-count convention, and your first payment may be adjusted for the number of days between closing and the first due date.

What is included in a monthly mortgage payment (PITI)

Lenders describe the full monthly payment as PITI — principal, interest, taxes and insurance. Most borrowers pay all of it in one installment, with the tax and insurance portions held in an escrow account by the servicer.

PMI applies when your down payment is under 20%. On a $270,000 loan at 0.5% it adds about $113 a month. You can request cancellation once you reach 20% equity, and under the Homeowners Protection Act the servicer must terminate it automatically at 22% equity based on the original amortization schedule.

Biweekly, bimonthly and monthly payments compared

These three schedules sound similar and behave very differently. The distinction is worth understanding before you set one up.

Looking for a bi-weekly mortgage calculator? Choose the biweekly frequency above and the schedule shows the shorter payoff for you.

Biweekly is the one that changes the outcome. Because there are 52 weeks in a year, paying half your monthly amount every two weeks produces 26 half-payments — the equivalent of 13 full monthly payments instead of 12.

On the $240,000 example, half of $1,516.96 is $758.48 every two weeks. That clears the loan in roughly 24.2 years instead of 30 and saves about $70,500 in interest.

Two practical cautions. Many servicers do not accept true biweekly payments and will simply hold the money until a full installment accumulates, which removes the benefit. And third-party biweekly conversion services often charge setup and per-transaction fees that eat into the saving. Making one extra full payment a year directly to principal achieves nearly the same result at no cost.

Mortgage payoff calculator: extra payments and paying off early

Any amount paid above the scheduled installment goes straight to principal, which removes all the future interest that balance would have generated. The effect compounds, so early extra payments are worth far more than late ones.

Adding just $100 a month to the $240,000 example clears the loan in 25.2 years rather than 30, and saves roughly $58,350 in interest. Bigger overpayments do more, but each extra dollar does a little less than the one before:

To use this page as a pay off mortgage early calculator, tick the payment schedule options and type your monthly overpayment in the extra payment box. The schedule then shows your new payoff date and the interest you save. Already part-way through a loan? Enter your current balance as the loan amount and your remaining years as the term — that turns it into a home loan payoff calculator for the mortgage you have today.

Three things to check before you commit. Confirm your lender applies overpayments to principal rather than pre-paying the next installment — this usually needs to be stated explicitly. Check the loan for prepayment penalties, which are uncommon on conforming US mortgages but do appear on some portfolio and commercial loans. And weigh it against the alternative: if your mortgage rate is below what you would reliably earn elsewhere, or you have higher-interest debt or no emergency fund, overpaying may not be the strongest use of the money.

Mortgage recast calculator: recast vs refinance

Both lower your monthly payment, but they work in completely different ways and suit different situations.

A recast means paying a lump sum against principal and asking the servicer to re-amortize the remaining balance over the remaining term. In the running example, the balance after five years is about $224,666. Paying $50,000 and recasting over the remaining 25 years cuts the payment from $1,516.96 to roughly $1,179 a month — a saving of about $338 — while keeping the original 6.5% rate.

This page works as a mortgage recast calculator too. Tick the payment schedule options, enter the recast lump sum and the year you plan to pay it, and the calculator shows your new, lower payment.

That last point decides it. If your existing rate is better than current market rates, recasting keeps it and refinancing would throw it away. If current rates are meaningfully lower than yours, refinancing is the stronger move despite the closing costs. Note that FHA, VA and USDA loans generally cannot be recast, and jumbo policies vary by servicer.

Refinance break-even point

A refinance only pays when you keep the new loan long enough to win back its closing costs. Divide the costs by the monthly saving:

Say you owe $240,000 at 7.5% and can refinance to 6.5% over 30 years. Your payment drops from $1,678 to $1,517 — a saving of $161 a month. With $7,200 of closing costs (3%), you break even after about 45 months. Move house before then and the refinance cost you money.

A no closing cost refinance does not make the fees vanish. The lender either adds them to your balance or charges a slightly higher rate through lender credits. It can still be the right call if you might sell within a few years, because you never have to earn the costs back.

Fixed-rate vs adjustable-rate (ARM) mortgages

A fixed-rate mortgage keeps the same interest rate for the whole term, so the principal and interest portion never changes. An adjustable-rate mortgage holds an introductory rate for a set period and then adjusts periodically against a benchmark index.

ARMs are written as two numbers. A 5/1 ARM is fixed for five years, then adjusts once a year; a 7/1 and a 10/1 work the same way with longer fixed periods. The new rate is the index — most US ARMs now use SOFR — plus a fixed margin set at origination.

Caps limit how far it can move, usually written as three numbers such as 2/2/5: a maximum 2 percentage-point rise at the first adjustment, 2 points at each later adjustment, and 5 points above the starting rate over the life of the loan. Read these before signing, because the worst case is entirely predictable from them.

An ARM makes sense when you have a genuine reason to expect to sell or refinance before the fixed period ends, or when the introductory discount is large. It is a poor fit if the maximum capped payment would strain your budget. To model an ARM here, run the calculator twice — once at the introductory rate and once at the lifetime cap — to see both ends of the range.

Mobile home loan calculator: manufactured home mortgages

Financing a manufactured or mobile home follows different rules, and the payment math changes with it.

The key question is whether the home is titled as real property or as personal property. If it is permanently affixed to a foundation on land you own, it can usually be financed as real property with a conventional, FHA or VA mortgage at standard rates and terms. If it remains titled as personal property — typical when the home sits in a leased park — you need a chattel loan instead.

Chattel loans carry noticeably higher rates, commonly 7%–11%, and shorter terms of 15 to 25 years rather than 30. Both raise the monthly payment considerably for the same amount borrowed. FHA Title I covers the home alone or the home and lot together with lower limits and shorter terms, while FHA Title II applies only when the home and land are financed together as real property.

The gap is real money. Borrow $100,000 as a chattel loan at 9% over 20 years and you pay about $900 a month. Borrow the same amount as a 30-year mortgage at 6.5% and you pay about $632.

To model either case, enter the purchase price, your down payment, the quoted rate and the actual term offered. Manufactured home loans often require 5%–20% down depending on the program and title status.

Closing costs on a mortgage

Closing costs are the one-off fees due at completion and typically run 2%–5% of the loan amount — on a $240,000 loan, roughly $4,800 to $12,000. They sit outside the monthly payment, so budget for them separately.

They usually include lender origination and underwriting fees, appraisal, credit report, title search and title insurance, recording fees, survey where required, attorney fees in states that mandate one, and prepaid items such as the first year of home insurance, several months of property tax into escrow, and interest from closing to the end of that month. Discount points, if you buy them, are paid here too.

To estimate closing costs quickly, multiply your loan amount by 0.02 for the low end and 0.05 for the high end. Buyers in high-tax states, or anyone buying discount points, should expect the upper half.

Your lender must provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before completion. Compare the two line by line — several categories are legally restricted in how much they may increase between the two documents.

Debt-to-income ratio and how much you can borrow

Your debt-to-income ratio is the main constraint lenders apply, and it is usually what determines your maximum loan rather than the payment you feel you can afford.

Two figures matter. The front-end ratio is your proposed housing payment divided by gross monthly income; the traditional guideline is 28%. The back-end ratio adds all other recurring debt — car loans, student loans, minimum credit card payments — with a guideline of 36%.

In practice those limits stretch. Conventional loans through automated underwriting often approve to 45%–50% back-end with strong credit and reserves, and FHA commonly allows 43%–50%. On $7,000 gross monthly income, a 36% back-end ratio allows $2,520 of total debt payments; if you already pay $600 toward a car and student loans, that leaves $1,920 for housing.

Note that lenders use gross income, not take-home pay. A ratio that qualifies on paper can still be uncomfortable once tax, retirement contributions and health premiums are deducted, which is why the maximum approval and the sensible number are rarely the same.

How to read your amortization schedule

Need a printable amortization schedule? After you calculate, use the export buttons to save the full schedule as a PDF, CSV or Excel file, or print it straight from your browser.

The schedule below the calculator shows, for each year, how much of your payments went to principal, how much went to interest, and what balance remains.

The striking part is how lopsided it is at the start. On the $240,000 example, the very first payment is $1,300.00 interest and only $216.96 principal — just 14% of the installment reduces what you owe. This is not a fee structure; interest is simply charged on the outstanding balance, which is at its largest on day one.

The crossover point, where more of each payment goes to principal than to interest, does not arrive until payment 233 — over 19 years into a 30-year loan at 6.5%. Everything after that accelerates. Two practical uses: the yearly interest column is what feeds the mortgage interest deduction if you itemize, and the balance column tells you when you cross 20% equity and can request PMI cancellation.

15-year mortgage vs 20, 30, 40 and 50-year terms

The term is the single biggest lever on your monthly payment — and on what the house eventually costs you. Stretching a loan lowers the payment, but the saving shrinks fast while the interest keeps climbing. Same $240,000 loan at 6.5% throughout:

Look at what the long terms actually buy you. Going from 30 years to 50 saves $164 a month — and costs $265,646 more in interest. You would pay more than double the amount borrowed, purely in interest, to save the price of a weekly shop.

The reason is diminishing returns. Each extra year of term adds less to the denominator of the payment formula while adding a full year of interest to the total. Past about 30 years the monthly benefit flattens almost completely, which is why 40 and 50-year mortgages make sense only in narrow circumstances.

Are 40 and 50-year mortgages a good idea?

They exist mainly as an affordability device, and in some markets as a hardship or loan-modification tool rather than a product you shop for. Weigh them honestly:

• Equity builds painfully slowly. On the 50-year loan above, you are still paying almost entirely interest well into the second decade.
• They are often not conforming loans. In the US, a term beyond 30 years generally falls outside the qualified mortgage rules, so pricing and availability are worse.
• The rate is usually higher than a 30-year, which erodes the monthly saving the table above assumes.
• Refinancing is the usual exit, and it depends on rates and your circumstances years from now — neither of which you control.

If affordability is the problem, compare a 40 or 50-year term against a larger deposit, a cheaper property, or a 30-year loan you overpay when you can. Set the term field above to 40 or 50 and run your own numbers before deciding — the calculator handles terms up to 50 years.

Mortgage points and buying down your rate

A discount point costs 1% of the loan amount and buys a permanently lower interest rate — typically around 0.25 percentage points per point, though this varies by lender and by day.

2-1 buydown calculator: temporary buydowns

A 2-1 buydown lowers your rate by 2 points in year one and 1 point in year two. From year three you pay the full note rate. The seller or builder often pays for it as a sales incentive.

On the $240,000 loan at 6.5%, year one runs at 4.5% ($1,216 a month) and year two at 5.5% ($1,363). The subsidy covering the gap costs about $5,462. A 3-2-1 buydown adds a third cheaper year and costs roughly $10,733. You can use this page as a simple buydown calculator: run it at each year’s rate and compare the payments.

This page doubles as a mortgage points calculator: run it once at your quoted rate and once at the bought-down rate, then divide the cost of the points by the monthly difference.

The break-even test is the whole decision. Points suit buyers who are confident they will hold the loan a long time; they are poor value if you might move, and worse if you might refinance. Note the difference between discount points, which buy down the rate, and origination points, which are simply a lender fee and buy you nothing. Lender credits work in reverse: you accept a higher rate in exchange for cash toward closing costs.

Credit score and the rate you are offered

Your credit score does not change the arithmetic on this page, but it changes the rate you type into it — and that dominates everything else. Typical rate tiers run roughly like this:

These bands are indicative, not quoted rates. Actual pricing depends on the lender, the loan programme, your deposit and the day. Minimum scores also vary by programme — conventional loans generally start around 620, FHA loans lower with a larger deposit. Get an actual quote rather than planning from a table.

The practical point is that a 0.5 point rate difference on this loan is worth about $80 a month and roughly $28,700 across 30 years. Spending a few months improving a score before applying often beats any amount of haggling over the purchase price.

For a non-mortgage loan — personal, car or anything amortising over a shorter term — the loan calculator handles any payment frequency and folds fees into an effective APR. To see what your future payments are worth in today’s money, use the inflation calculator.

Interest-only mortgage calculator

With an interest-only mortgage you pay just the interest for a set period, often 5 to 10 years. The balance does not fall at all. After that, the loan switches to full payments over the years that remain.

To calculate an interest-only payment on any interest-only home loan or interest-only HELOC, use the formula above. Then put the full balance and the remaining term into this calculator to see the payment after the switch. The same steps work for an interest only loan calculator on a business or bridging loan.

Balloon mortgage and balloon payment calculator

A balloon mortgage keeps payments low by working them out over a long period — often 30 years — but the loan ends much sooner. Whatever is left becomes one big final “balloon” payment. Many commercial real estate loans work this way too.

To find the balloon, look at the amortization schedule. The balance at the end of the balloon year is what you owe. For the $240,000 loan at 6.5% on a 30-year schedule:

Read that first row again. After five years of payments you still owe over 93% of the loan. Most borrowers refinance or sell before the balloon falls due — which works only if rates and your finances cooperate at that moment.

PMI removal: when does PMI come off?

Private mortgage insurance is not forever on a conventional loan. Two dates matter, and both use your original home value:

• 80% loan-to-value — you can ask your servicer to cancel PMI.
• 78% loan-to-value — the servicer must cancel it automatically.

Take a $300,000 home with 10% down, so you borrow $270,000 at 6.5% over 30 years. PMI at 0.5% to 0.8% a year costs about $113 to $180 a month. On normal payments the balance reaches 80% of the value ($240,000) after about 7 years 11 months, and 78% ($234,000) after about 9 years 1 month.

Extra payments bring both dates closer. Use the schedule above as a PMI removal calculator: find the year your balance drops below 80% of the price you paid. If your home has risen in value, some lenders also accept a new appraisal. FHA mortgage insurance follows different rules and often lasts the life of the loan.

Down payment on a $200k to $600k house

The minimum down payment depends on the loan type. Conventional loans start at 3% for some first-time buyers, FHA at 3.5%, and VA and USDA loans can be zero down. Here is the cash each level needs:

So the 20% down payment on a 400k house is $80,000, and on a 500k house it is $100,000. Put down less and you pay PMI, but you keep cash for closing costs and an emergency fund — which matters too. Remember closing costs come on top of the down payment.

Second home and investment property mortgages

Can I afford a second home? Lenders count the full payment on both homes against your income. A second home that you live in part of the year usually needs at least 10% down. A rental or investment property usually needs 15%–25% down and carries a rate around 0.5 to 0.75 points higher.

Use this as a second home mortgage calculator: enter the price, the bigger down payment and a slightly higher rate. Then add the new payment to your existing housing cost and check the total against the 36%–45% debt-to-income limit above. For a rental, lenders may count part of the expected rent as income, but rarely all of it.

Mortgage interest deduction

In the US you can deduct mortgage interest on up to $750,000 of home acquisition debt — but only if you itemize. Most households now take the standard deduction instead, so the deduction helps fewer people than it used to.

The amortization schedule doubles as a mortgage interest deduction calculator. On the $240,000 example, first-year interest is about $15,521. Add your state and local taxes and charitable gifts. If the total beats your standard deduction, itemizing may save you tax. Rules change, so check IRS Publication 936 or a tax adviser before you count on it.

Reverse mortgage and HECM calculator: how they differ

A reverse mortgage runs backwards. Homeowners aged 62 or older borrow against their equity and make no monthly payment. Interest and fees are added to the balance, so the debt grows over time. The loan is repaid when the home is sold or the last borrower moves out or dies.

How much you can borrow depends on your age, current interest rates and your home’s value up to the FHA limit. That is why a reverse mortgage calculator needs very different inputs from this one. Before taking a HECM, US law requires a session with a HUD-approved counselor, who will run the real numbers with you for free or at low cost.

What this calculator does not cover

It models a forward, fully amortising mortgage — you borrow, then repay principal and interest over a term. It does not model reverse mortgages or HECMs, where the balance grows instead of falling and the loan is settled from the property later; those depend on your age, home value and programme limits, and need a dedicated tool. It also does not handle interest-only periods, balloon payments, offset accounts, or shared-ownership structures.

This is a calculation aid, not financial advice. Rates, fees and lending rules change constantly and vary by country and lender. Nothing here is a quote or an offer. Before committing to a mortgage, get figures in writing from a lender and, where the amounts matter to you, take advice from a qualified adviser who knows your circumstances.

Monthly payment on a $100k to $1 million mortgage

These figures are principal and interest only. Taxes, insurance and PMI come on top — turn them on in the calculator to see your full payment.

Each 1% rise in the rate adds roughly $65 a month per $100,000 borrowed on a 30-year loan. Small rate changes matter. So the mortgage on a 600k house with 20% down ($480,000 borrowed) at 6.5% is about $3,034 a month before tax and insurance, and the payment on a 1 million mortgage is about $6,321.

Income needed for a $300k, $400k or $500k mortgage

Lenders often use the 28% rule: your full housing payment should be no more than 28% of your gross monthly income. Here is the income that fits, assuming 6.5% for 30 years and about $400 a month for tax and insurance.

Your own figure depends on local taxes, your other debts and your credit score. The debt-to-income section above explains the 36% back-end limit too.

What house can I afford on my salary?

Flip the same rule around and you get a rough price ceiling for each income. Same assumptions: 28% of gross pay, 6.5% over 30 years, $400 a month for tax and insurance, and no other debts.

So what house can you afford on 70k a year? Roughly $215,000–$220,000 with 10% down, if you carry no other debt. A car loan or student loan pulls that number down quickly.

The 25% rule (Dave Ramsey's guideline)

Personal finance author Dave Ramsey suggests a stricter test. Keep the monthly payment — including tax and insurance — to 25% of take-home pay, on a 15-year fixed-rate loan. Take-home pay is after tax, so this rule allows a much smaller loan than the 28% rule.

To test it here, set the loan term to 15 years and turn on taxes and insurance. If the total monthly outgoing is above a quarter of your take-home pay, the house may stretch you.

• 28% rule — based on gross income, any loan term. What many lenders use.
• 25% rule — based on take-home pay, 15-year loan. A cautious budgeting rule.

Adjustable rate mortgage (ARM) calculator

Open Payment schedule, extra payments, recast and ARM. Enter the fixed period — 5, 7 or 10 years for a 5/1, 7/1 or 10/1 ARM — and the rate you expect after it resets. The calculator shows how your payment changes when the fixed period ends.

Try a "worst case" rate as well as a likely one. If you can still afford the payment at the higher rate, the ARM's lower starting rate is less of a gamble.

Other ways to use this calculator

Most home loan questions run through this one calculator.

• Mobile and manufactured home mortgage calculator — enter the price, down payment, rate and term.
• Biweekly and bimonthly mortgage calculator — pick the payment frequency; see biweekly payments explained.
• Debt-to-income ratio mortgage calculator — compare the total monthly outgoing with 28% of gross income.
• Mortgage insurance calculator (PMI) — PMI is estimated automatically when the down payment is under 20%.
• Jumbo mortgage calculator — the maths is the same for any loan size; jumbo loans simply sit above the conforming limit and often need a bigger down payment.
• FHA and USDA loan mortgage calculator — enter the rate and term. PMI is estimated automatically below 20% down; FHA and USDA charge their own insurance, so treat that line as a guide.
• Land loan calculator — land loans usually need 20%–50% down and run 10 to 20 years, so set the term to match the offer.
• First mortgage calculator — for a first-lien home loan, enter the price, down payment, rate and term as normal.
• Mortgage loan affordability calculator — compare the full monthly payment with 28% of gross income, or use the salary table above.
• House payoff calculator — enter your current balance and remaining years, then add an extra payment to see the new payoff date.
• Hard money calculator — these short loans are often interest-only at 10%–14%; use the interest-only formula above and add the points as a cost.
• Mortgage comparison calculator — run two offers side by side in two browser tabs and compare the total interest and the APR, not just the payment.
• PITI mortgage calculator — tick the taxes and insurance box to see principal, interest, taxes and insurance together.
• Mortgage payment calculator and PMI calculator — tick the extras box for the full monthly payment.
• Biweekly mortgage calculator and extra payment mortgage calculator — choose the frequency and add an extra amount.
• ARM mortgage calculator — the adjustable rate mortgage calculator option models a 5/1, 7/1 or 10/1 ARM.
• 200k mortgage payment and 300k mortgage payment — see the payment table above; income needed for 300k mortgage is in the income section.

Related guides

• Monthly Mortgage Payment on a $200k to $600k House
• How Much Income Do You Need for a Mortgage?
• Biweekly Mortgage Payments: Do They Really Save Money?
• 40-Year Mortgage: Is the Lower Payment Worth It?
• Minimum Credit Score to Buy a House
• Adjustable-Rate Mortgages Explained: 5/1, 7/1 and 10/1

Frequently asked questions