Mortgage Calculator
+ Add Property Tax, Insurance & HOA (Optional)
Refinance Breakeven Calculator
Find out when refinancing costs will be recouped through monthly savings
Typical closing costs: 2-6% of loan amount (appraisal, title, fees, etc.)
If you plan to stay in this home for more than 1.0 years, refinancing will save you money.
Total Savings Over Time:
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How to Calculate Your Mortgage Payment and Total Interest
Our free mortgage calculator helps you estimate your monthly mortgage payment based on your home price, down payment, interest rate, and loan term. Whether you're a first-time homebuyer or looking to refinance, understanding your monthly payment is crucial for budgeting and financial planning.
Mortgage Payment Breakdown: What You're Really Paying Each Month
Your monthly mortgage payment isn't just one number—it's made up of multiple components that work together. Here's what you're actually paying for each month (commonly called PITI):
- Principal: The portion that reduces your actual loan balance, building your home equity
- Interest: What you pay the lender for the privilege of borrowing—calculated as a percentage of your remaining balance
- Taxes: Your annual property tax bill split into 12 monthly chunks, usually collected via escrow
- Insurance: Homeowners coverage protecting against damage/loss, also typically paid through escrow
- PMI: Extra insurance required if you put down under 20%—protects the lender, not you
- HOA Fees: Community association dues (if applicable), billed separately or bundled into your payment
Understanding Down Payments
Your down payment is the cash you bring to closing—essentially buying a percentage of the home upfront. The classic 20% down payment avoids PMI, but you have options: FHA loans start at 3.5% down, and certain conventional programs accept as little as 3% for qualified first-time buyers. The trade-off? Smaller down payments mean PMI gets added to your monthly bill until you've built up 20% equity through payments and appreciation. Use the slider above to see exactly how your down payment affects both your monthly cost and total interest.
How Interest Rates Affect Your Payment
Interest rates have enormous leverage on your finances. A seemingly small 1% rate difference on a $400,000 mortgage translates to $200-300+ more per month and potentially $75,000-100,000 extra over 30 years. That's why rate shopping is crucial—getting quotes from 3-5 lenders can easily uncover a 0.25-0.5% difference, saving you tens of thousands. Adjust the interest rate slider above to see how dramatically this impacts both your monthly budget and lifetime cost.
15-Year vs 30-Year Mortgage Calculator Comparison
This is one of the biggest decisions you'll make. The 30-year term spreads payments out for maximum affordability—great if you want cash flow flexibility or plan to invest the difference. The 15-year option doubles your monthly payment but typically carries a 0.5-0.75% lower interest rate, builds equity at lightning speed, and can save you over $150,000 in interest on a typical loan. Toggle the loan term slider above to see both options side-by-side with your specific numbers, then decide what aligns with your financial goals.
Should I Refinance My Mortgage? Calculate Your Breakeven Point
Our integrated refinance calculator helps you determine if refinancing makes financial sense. By calculating your breakeven point—the time it takes for your monthly savings to offset closing costs—you can make an informed decision. Use the refinance calculator below the main calculator to input your current mortgage details and compare them against new refinance rates. If you plan to stay in your home longer than the breakeven period, refinancing could save you thousands in interest over the life of your loan.
How Much Interest Will I Pay on My Mortgage?
One of the most shocking aspects of mortgages is the total interest paid over time. On a typical $400,000 30-year mortgage at 7% interest, you'll pay over $550,000 in interest alone—nearly 140% of the original loan amount. Our calculator shows you this number prominently, along with a visual chart breaking down principal vs interest payments year by year. Understanding this helps you see the real cost of borrowing and motivates smarter decisions like making extra principal payments or choosing a shorter loan term.
Additional Costs to Consider
Beyond your monthly mortgage payment, homeownership includes other expenses like maintenance, repairs, utilities, and potentially HOA fees. Financial experts typically recommend budgeting an additional 1-2% of your home's value annually for maintenance and repairs. Make sure to factor these costs into your overall housing budget.
Frequently Asked Questions
How accurate is this mortgage calculator?
Our calculator gives you reliable estimates using standard mortgage formulas and typical rates. However, your final payment may differ slightly depending on your lender's closing costs, exact escrow calculations, and any special loan features. Think of this as your planning tool—then get official quotes from 2-3 lenders to lock in precise numbers before you commit.
What is PMI and when can I remove it?
PMI (Private Mortgage Insurance) is extra insurance that lenders require when your down payment is under 20% of the home's value. It protects them—not you—if you can't make payments. The good news: you can request cancellation once you've built up 20% equity, or it drops off automatically at 22%. Eliminating PMI can reduce your payment by $100-300 monthly, so mark your calendar and call your lender when you hit that threshold.
How much house can I afford?
Most financial advisors follow the 28/36 guideline: housing costs should stay under 28% of your monthly gross income, while total debt payments (including your mortgage) should remain below 36-43%. Try different home prices in the calculator above to find a monthly payment that fits comfortably within these limits, giving you a realistic budget for your home search.
Should I get a 15-year or 30-year mortgage?
Your choice depends on balancing monthly affordability with long-term savings. A 30-year loan provides breathing room in your budget with smaller payments, ideal if you have other financial priorities. A 15-year term costs more monthly but slashes your total interest dramatically—often saving over $100,000 on a typical loan. Test both options in the calculator to see the exact difference for your situation.
What credit score do I need to get a mortgage?
You can qualify with a score as low as 580 for FHA loans (or even 500 with a larger down payment), while conventional mortgages usually need 620+. But here's the real story: every 20-point jump in your score unlocks better interest rates. A 760 score versus 660 could mean 0.5-1% lower rate, saving you $50,000+ over 30 years. If your score is borderline, spending a few months improving it before applying pays massive dividends.
Are property taxes and insurance included in my mortgage payment?
Yes, in most cases. Lenders typically set up an escrow account that bundles your property tax and insurance costs into your monthly payment. You pay 1/12th of these annual expenses each month, and your lender handles paying the bills when due. Once you've built substantial equity (usually 20-30%), some lenders let you opt out and manage these payments yourself—though the convenience of escrow is usually worth it.