A mortgage is a loan used to purchase a home or other type of real estate. The property itself serves as collateral for the loan.

What's the difference between a 15-year and a 30-year mortgage?

A 15-year mortgage has higher monthly payments but a lower interest rate and less total interest paid over the life of the loan. A 30-year mortgage has lower monthly payments but you'll pay more in interest over time.

What is an amortization schedule?

An amortization schedule is a table detailing each periodic payment on a loan. It shows how much of each payment goes towards interest and how much goes towards paying down the principal.

Can I pay my mortgage off early?

Yes, making extra payments towards your principal can help you pay off your mortgage faster and save on interest. Check with your lender to ensure there are no prepayment penalties.

What does a 1% higher rate do to a 240,000 mortgage over 30 years?

At 6.5%, the payment is 1,516.96 per month with total interest 306,106.77. At 7.5%, it rises to 1,678.11 per month with total interest 364,121.34 — one extra point costs 161.15 more monthly and 58,014.57 more over 30 years.

How much does a 15-year term save versus 30 years on a 240,000 loan at 6.5%?

The 30-year payment is 1,516.96 with total interest 306,106.77, while the 15-year payment is 2,090.66 with total interest 136,318.38. Paying 573.69 extra per month saves 169,788.39 in lifetime interest.

Free Online Tool

Mortgage Calculator

Calculate your monthly mortgage payments

Reviewed by Prime Metric • Updated September 2026 WhatsApp

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n-1]

Loan Details

Currency

Home Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (Years)

Results

Monthly Payment

$1,516.96

Total Payment

$546,106.77

Total Interest

$306,106.77

Principal vs Interest

PrincipalInterest

Balance Declining per Year

About this Tool

The Mortgage Calculator helps you estimate your monthly mortgage payment, including principal and interest. It's an essential tool for homebuyers to understand the financial commitment of a home loan.

Common Use Cases

Home Buying

Estimate your monthly payments to determine how much house you can afford.

Refinancing

Compare your current mortgage with new offers to see if refinancing can save you money.

Loan Comparison

See how different loan terms (e.g., 15-year vs. 30-year) or down payments affect your monthly payment and total interest.

Pro Tips

!
The 20% Rule
A down payment of at least 20% helps you avoid Private Mortgage Insurance (PMI), which can add to your monthly cost.
!
PITI is Key
Your full monthly housing payment will also include property taxes and homeowners insurance (PITI). This calculator only shows principal and interest.
!
Shop for Rates
Getting quotes from multiple lenders can save you a significant amount of money over the life of your loan.

Examples

300,000 home with 60,000 down at 6.5% for 30 years

A 240,000 mortgage at 6.5% for 30 years costs 1,516.96 per month with total interest 306,106.77.

Loan principal = 300,000 - 60,000 = 240,000; monthly rate r = 6.5/100/12 = 0.0054167 and months n = 360.
Monthly payment = 240,000 x 0.0054167 x 1.0054167^360 / (1.0054167^360 - 1) = 1,516.96.
Total payment = 1,516.96 x 360 = 546,106.77, so total interest = 546,106.77 - 240,000 = 306,106.77.

400,000 home with 80,000 down at 7% for 30 years

A 320,000 mortgage at 7% for 30 years costs 2,128.97 per month with total interest 446,428.47.

Loan principal = 400,000 - 80,000 = 320,000; monthly rate r = 7/100/12 = 0.0058333 and months n = 360.
Monthly payment = 320,000 x 0.0058333 x 1.0058333^360 / (1.0058333^360 - 1) = 2,128.97.
Total payment = 2,128.97 x 360 = 766,428.47, so total interest = 766,428.47 - 320,000 = 446,428.47.

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