Mortgage Calculator
Estimate your monthly mortgage payment and see how your loan balance declines over time.
Purchase price (home price) of the property before any down payment is applied.
Amount paid upfront that reduces the amount you need to borrow. Typically 3–20% of the home price.
Length of the mortgage in years. Common terms are 15 and 30 years (1–40 allowed).
Nominal annual interest rate for the loan (0–15%). This calculator assumes a fixed interest rate for the full term.
Principal and interest only. Property taxes, homeowners insurance, PMI, and HOA fees are not included.
If I knew where I was going to want to live the next 5 or 10 years, I would buy a home and I'd finance it with a 30-year mortgage and it's a terrific deal. If you're handy, consider buying a couple of homes.
About this calculator
This mortgage calculator estimates your monthly payment for a fixed-rate home loan based on the purchase price, down payment, loan term, and interest rate. It also shows how your remaining loan balance decreases over time as you make payments.
Use this calculator to understand affordability, compare loan scenarios, and see how long-term mortgage payments are structured.
What each input means
- Home price is the total purchase price of the property before any down payment is applied.
- Down payment is the amount you pay upfront when buying the home. A larger down payment reduces the loan amount and can lower your monthly payment.
- Loan term (years) is the length of time over which the mortgage is repaid. Longer terms generally have lower monthly payments but higher total interest costs.
- Annual interest rate (APR) is the yearly interest rate charged on the loan. This calculator assumes the rate stays constant over the entire loan term.
- Estimated monthly payment is the projected monthly payment covering principal and interest only.
How does a mortgage work?
A fixed-rate mortgage is repaid through equal monthly payments over a set period of time. Each payment is split between interest and principal.
Early in the loan, a larger portion of each payment goes toward interest because the remaining balance is highest. Over time, the interest portion decreases and more of each payment goes toward paying down the principal. This gradual shift is known as amortization.
In this calculator: payments are assumed to be made monthly, the interest rate is fixed for the full term, and each payment reduces the remaining loan balance.
The chart shows how your loan balance declines year by year, helping visualize how long it takes to build equity in your home.
Key assumptions & exclusions
- Principal and interest only – This calculator does not include property taxes, homeowners insurance, PMI, or HOA fees, which vary by location and lender.
- Fixed-rate loan – Adjustable-rate mortgages (ARMs) are not modeled.
- No refinancing or extra payments – The calculator assumes the loan is held for the full term with no additional principal payments.
For a more complete picture of housing costs, consider adding taxes, insurance, and maintenance separately.