Mortgage Calculator

1. Enter the total home price in the Home Price field.
2. Set your down payment as a dollar amount or percentage -- both fields stay in sync.
3. Enter the annual interest rate (e.g., 6.5 for 6.5%).
4. Select a loan term using the preset buttons (15, 20, or 30 years) or type a custom value.
5. View your monthly payment, total payment, total interest, and loan amount instantly.
6. Click "Amortization Schedule" to see the full month-by-month payment breakdown.

Understanding Mortgage Payments

A mortgage is a loan used to purchase real estate, where the property itself serves as collateral. Fixed-rate mortgages have the same interest rate and monthly payment for the entire loan term, making budgeting predictable.

This calculator uses the standard amortization formula to compute your fixed monthly payment. Each payment is split between interest (charged on the remaining balance) and principal repayment. In the early years, most of your payment goes toward interest, but over time the balance shifts toward principal as the outstanding balance decreases.

Your total cost of homeownership includes the down payment, all monthly payments over the loan term (principal + interest), plus additional costs not included here such as property taxes, homeowners insurance, and possibly PMI. Use this calculator to compare different scenarios and find the right balance between monthly affordability and total cost.