How to use the Mortgage Calculator
- Enter the home price and your down payment.
- Add the interest rate and loan term (usually 15 or 30 years).
- Optionally include annual property tax and home insurance.
- Review the monthly payment and amortization schedule.
Frequently asked questions
How is a mortgage payment calculated?
The principal and interest payment uses the standard amortization formula M = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the monthly rate and n the number of monthly payments.
Does this include PMI?
No. Private mortgage insurance usually applies when you put down less than 20% on a conventional loan. Ask your lender for a PMI quote and add it to the monthly total.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but far less total interest. A 30-year loan is cheaper month to month but costs more over its life.