🏠 Mortgage Calculator
See your full mortgage cost — monthly payment, total interest, and amortization.
Our free Mortgage Calculator shows your monthly principal and interest payment, total interest paid over the life of the loan, and how different rates and terms compare. Buying a home is the largest financial decision most people ever make — understanding the full cost before signing is essential.
Mortgage Payment Formula
M = monthly payment | P = loan amount | r = monthly interest rate (APR ÷ 12) | n = total payments (years × 12)
Example — $300,000 Mortgage at 7% APR for 30 Years
Monthly rate: r = 0.07 ÷ 12 = 0.005833 | n = 360 payments
Monthly P&I payment: $1,996
Total paid over 30 years: $718,560 | Total interest: $418,560
That's more in interest than the original loan amount.
15-Year vs 30-Year Mortgage Comparison
The term length is the biggest decision after rate. On a $300,000 loan:
- 30-year at 7.0%: $1,996/month — $418,560 total interest
- 15-year at 6.5%: $2,613/month — $170,340 total interest
The 15-year costs $617/month more but saves $248,220 in interest. That extra monthly payment over 15 years equals $111,060 — the savings are nearly 2.25× that amount.
What Your Monthly Payment Actually Includes
Our calculator shows principal and interest (P&I). Your actual monthly payment will also include:
- Property taxes: Typically 1–2% of home value per year, divided by 12. On a $300,000 home: $250–$500/month.
- Homeowner's insurance: Usually $100–$200/month depending on location and coverage.
- PMI: Required if your down payment is under 20%. Typically 0.5–1.5% of the loan annually — $125–$375/month on a $300,000 loan — until you reach 20% equity.
- HOA fees: Where applicable, can range from $50 to $500+/month.
How Down Payment Affects Your Mortgage
- 20% down ($60,000): $1,596/month — no PMI — loan = $240,000
- 10% down ($30,000): $1,796/month + PMI ~$187/month = ~$1,983/month effective
- 5% down ($15,000): $1,896/month + PMI ~$234/month = ~$2,130/month effective
Saving for a 20% down payment eliminates PMI and reduces your loan balance, but delaying purchase means continuing to pay rent. Use our rent vs. buy calculator to model the full comparison.
Rate Shopping Saves Thousands
On a $300,000 30-year mortgage, the difference between 6.5% and 7.5% APR is $183/month — and $65,880 over the life of the loan. Getting quotes from at least 3 lenders is one of the highest-ROI financial moves available to homebuyers.
🏠 Compare rates, terms, and down payments with our free Mortgage Calculator.
Open Mortgage Calculator →Frequently Asked Questions
What is the difference between interest rate and APR on a mortgage?
The interest rate is what you pay on the loan balance. APR includes the interest rate plus points, mortgage broker fees, and other charges, spread over the loan term. APR is the true cost of borrowing and is the correct figure to compare between lenders.
When does PMI go away?
PMI is required until you reach 20% equity. You can request cancellation when your loan balance drops to 80% of the original purchase price. Lenders must automatically cancel it when the balance reaches 78%. Rising home values can also help you reach 20% equity faster — you may be able to request a reappraisal and cancel PMI earlier.
Should I pay points to lower my rate?
One mortgage point costs 1% of the loan and typically reduces the rate by 0.25%. On a $300,000 loan, one point costs $3,000 and saves roughly $54/month. Break-even is about 56 months. If you plan to stay more than 5 years, paying points often makes sense.