Formula
Mortgage payment formula
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
- M is the monthly payment.
- P is the loan principal after down payment.
- r is the monthly interest rate.
- n is the total number of monthly payments.
Finance Calculator
Mortgage Calculator
Estimate monthly mortgage payments, total interest, and the real cost of buying a home before you talk to a lender.
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Example scenarios
Use it like a decision tool
First-home budget check
$380,000 home · 20% down · 6.5% APR · 30 years
Great for checking whether the payment still feels comfortable after taxes, insurance, and maintenance.
Rate-shopping comparison
$450,000 loan · compare 6.9% vs 6.2% · 30 years
A modest rate drop can save tens of thousands over the life of the loan.
FAQ
Common questions
Does this include property taxes and insurance?
The current calculator focuses on core principal and interest. Use it as your payment baseline, then layer in taxes, insurance, HOA fees, and maintenance for a realistic housing budget.
What is the difference between APR and interest rate?
Interest rate measures the cost of borrowing. APR is broader and can include fees, making it more useful for lender-to-lender comparisons.
Should I choose a shorter mortgage term?
If the higher monthly payment still leaves enough room for savings and emergencies, a shorter term usually cuts total interest sharply.
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