Monthly payments, total interest, amortization.
Monthly payments, total interest, amortization.
Enter your home's purchase price, the down payment you plan to make, the annual interest rate your lender quoted, and the loan term. Click Calculate to instantly see your monthly payment, the total interest you'll pay over the life of the loan, and a visual breakdown of principal vs. interest.
The calculator uses the standard fixed-rate amortization formula. Every month, part of your payment goes toward reducing the loan principal and part covers interest. Early in the loan, most of your payment is interest โ this shifts over time as the principal decreases.
This calculator covers principal and interest (P&I). Your actual monthly payment may also include property taxes, homeowner's insurance, and PMI (private mortgage insurance if your down payment is less than 20%). Add roughly 1โ2% of the home value per year for those costs.
A larger down payment directly reduces the loan principal, which lowers both your monthly payment and total interest paid. A 20% down payment also eliminates the need for PMI, saving you an additional $50โ$200/month depending on the loan size.
Rates vary by country, credit score, loan type, and market conditions. In the US, 30-year fixed rates have historically ranged from 3% to 8%. Your actual rate depends on your credit score, debt-to-income ratio, and the lender you choose. Improving your credit score by even 50 points can save tens of thousands over the loan's life.
A 15-year mortgage has higher monthly payments but saves significantly on interest โ often 50% or more. A 30-year mortgage has lower payments, giving you more monthly cash flow flexibility. If you can comfortably afford the higher 15-year payment, the interest savings are usually worth it.