Mortgage Calculator
Planning to buy a home or refinance? Our free mortgage calculator estimates your monthly mortgage payment based on home price, down payment, loan term, and interest rate. See exactly how much goes toward principal vs. interest each month and get a full amortization breakdown — no account or email required!
Loan Details
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Fill in your loan details and click Calculate to see your payment breakdown.
What Goes Into a Mortgage Payment?
When you take out a mortgage to buy a home, your monthly obligation is typically comprised of several different costs bundled together, often referred to as PITI (Principal, Interest, Taxes, and Insurance). Our calculator focuses primarily on the core of your loan: the Principal and Interest.
Principal & Interest Explained
Principal is the amount of money you actually borrowed to purchase the home, and part of your monthly payment goes toward paying down this balance. Interest is the fee the lender charges you for borrowing that money. The proportion of your payment that goes to each will change over time, a process known as amortization.
How Amortization Works
If you look at the amortization schedule generated by our calculator, you will notice a distinct pattern. In the early years of a standard 30-year fixed-rate mortgage, the vast majority of your monthly payment goes toward paying off the interest. As the years go by and the principal balance slowly decreases, the interest charges drop, allowing more of your monthly payment to attack the principal directly.
The Impact of Interest Rates
Even a seemingly small difference in your interest rate can result in massive savings or costs over the life of a 15-year or 30-year loan. Securing a rate that is just 1% lower can save you tens of thousands of dollars in total interest paid, drastically lowering the true cost of your home.
Frequently Asked Questions
How much down payment do I need?
Conventional loans typically require 5–20% down, though some government-backed loans like FHA allow as little as 3.5% down, and VA/USDA loans may require 0%. A larger down payment reduces your principal balance and can help you avoid paying for private mortgage insurance (PMI).
What credit score do I need to get a mortgage?
Most conventional lenders require a minimum credit score of 620. However, FHA loans can sometimes be acquired with scores as low as 500 with a larger down payment. A higher credit score generally unlocks much better interest rates.
What is PMI and when can I remove it?
Private Mortgage Insurance (PMI) is required by lenders when you put down less than 20% on a conventional loan. You can usually request to have PMI removed once your loan-to-value ratio reaches 80%.
Should I choose a 15-year or 30-year mortgage?
A 30-year mortgage has lower monthly payments which offers better cash flow and flexibility. A 15-year mortgage will have significantly higher monthly payments, but you will pay the home off twice as fast and save a massive amount of money on total interest paid.