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Mortgage Calculator

Calculate monthly mortgage payments, interest, and total cost.

Last updated: June 13, 2026

Calculator

Home Price

Down Payment

Interest Rate

Loan Term

Results

Monthly Payment (P&I)$1,770

Total Interest$357,125

Total Cost$637,125

Loan Amount$280,000

20.0% down

How to Use This Calculator

1Enter the home price or loan amount.
2Enter the down payment percentage or amount.
3Enter the interest rate and loan term.
4View monthly payment, total interest, and payment breakdown.

Formula Explanation

Monthly mortgage payments are calculated using the standard amortization formula that accounts for principal, interest rate, and loan term.

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Variables:

MMonthly payment

PPrincipal loan amount

rMonthly interest rate (annual rate ÷ 12)

nTotal number of payments (years × 12)

Worked Examples

$350,000 home, 20% down, 6.5%, 30 years

1. Loan = $350,000 - $70,000 = $280,000
2. Monthly rate = 6.5% ÷ 12 = 0.5417%
3. Payments = 360
4. M = $280,000 × 0.005417(1.005417)^360 / [(1.005417)^360 - 1]

Result: $1,770/month (principal & interest) — $357,175 total interest

$250,000 loan, 7%, 15 years

1. Monthly rate = 7% ÷ 12 = 0.5833%
2. Payments = 180

Result: $2,247/month — $154,485 total interest (saves $200K+ vs 30-year)

Why Use This Calculator

See your exact monthly payment before committing.
Compare 15-year vs 30-year total costs.
Understand how much goes to interest vs principal.
Plan your budget with confidence.

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Tips & Best Practices

A 15-year mortgage saves tens of thousands in interest vs. a 30-year.
Even small rate differences matter — 0.5% on $300K = $30K+ over 30 years.
Put at least 20% down to avoid PMI (private mortgage insurance).
Get pre-approved before house hunting to know your true budget.

Common Mistakes to Avoid

❌ Only looking at the monthly payment, not total interest.

✅ A 30-year mortgage at 6.5% on $280K costs $357K in interest alone. Always check total cost.

❌ Forgetting to include taxes, insurance, and PMI.

✅ Your actual monthly cost is PITI (principal, interest, taxes, insurance). This calculator shows the base P&I — budget 25-35% more for total housing cost.

❌ Not shopping around for rates.

✅ Even 0.25% lower rate on a $300K loan saves $15,000+ over the life of the loan. Get quotes from at least 3 lenders.

Frequently Asked Questions

How much house can I afford?

A common guideline is your monthly housing cost (PITI) should not exceed 28% of gross monthly income. With a $6,000/month income, aim for under $1,680/month total housing cost.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has higher monthly payments but saves enormous amounts in interest. On a $280K loan at 6.5%, the 15-year saves over $200,000 in interest compared to a 30-year.

What is PMI and when can I remove it?

Private Mortgage Insurance is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan annually. You can request removal when you reach 20% equity.

Should I pay points to lower my rate?

Each point costs 1% of the loan amount and typically lowers the rate by 0.25%. It is worth it if you plan to keep the mortgage long enough to recoup the cost — usually 4-7 years.

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Embed This Calculator

Add the Mortgage Calculator to your website for free. Copy the code below and paste it into your HTML.

Width

Height

<iframe src="https://redicalc.com/embed/finance/mortgage-calculator" width="100%" height="600" style="border:none;border-radius:12px;box-shadow:0 1px 3px rgba(0,0,0,0.1);" title="Mortgage Calculator — RediCalc.com" loading="lazy" allowtransparency="true"></iframe>

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Disclaimer: This calculator is provided for informational and educational purposes only. Results are estimates and should not be used as a substitute for professional advice. RediCalc.com makes no guarantees regarding the accuracy, completeness, or suitability of any calculations. Always consult a qualified professional before making financial, health, construction, or other important decisions.

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