Mortgage Calculator

Smart-Calcs
Finance & Business

Mortgage Calculator

Estimate your monthly payment and total interest on a home loan.

Home Price
$
50000 $2000000 $

That's 20.0% of the home price

Interest Rate
%
0 %25 %
Total Monthly Payment
$2,523
Loan amount: $320,000

Payment Breakdown

Principal & Interest$2,023
Property Tax (est. 1.2%/yr)$400
Home Insurance (est.)$100
Total / month$2,523

Amortization Schedule — First 5 Years

YearPrincipal PaidInterest PaidRemaining Balance
1$3,577$20,695$316,423
2$3,816$20,455$312,607
3$4,072$20,200$308,535
4$4,345$19,927$304,191
5$4,636$19,636$299,555

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How this mortgage calculator works

This home loan payment calculator estimates your monthly house payment using the standard amortization formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the loan principal (home price minus Down Payment),r is the monthly interest rate, and n is the total number of monthly payments. To calculate monthly mortgage payment totals accurately, it adds an estimated 1.2% annual Property Tax and a $100/month insurance placeholder to the principal-and-interest payment.

The calculator also generates an Amortization Schedule for the first five years, showing how each payment splits between principal reduction and interest. Early payments are mostly interest, while later payments shift toward principal — this is why extra payments early in the loan save the most money.

Tips for lowering your payment

  • Put down at least 20% to avoid Private Mortgage Insurance (PMI), which protects the lender — not you — and can add $50–$200/month until you reach 20% equity.
  • A shorter loan term raises your monthly payment but can save tens of thousands in interest.
  • Even a 0.5% rate reduction can lower a 30-year payment by roughly $100/month on a $400k loan.
  • Shop multiple lenders — rates and closing costs vary significantly between institutions.

Planning your financial future? See how your savings can grow over time using our Compound Interest Calculator.

Frequently Asked Questions about Home Mortgages

The standard monthly payment is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). This formula keeps the payment fixed while the split between principal and interest shifts over time.
This calculator uses a placeholder property tax of 1.2% of the home price per year (divided into monthly amounts) and a flat $100 per month for homeowners insurance. Your real figures may vary — always confirm exact escrow costs with your lender.
Yes. A larger down payment reduces the loan principal, which reduces both the principal-and-interest portion and, in many cases, eliminates private mortgage insurance (PMI) once you reach 20% equity.
A 15-year loan has higher monthly payments but significantly less total interest because the principal is paid off twice as fast. A 30-year loan offers lower monthly payments and more cash-flow flexibility, but costs more in interest over the life of the loan.
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Total / month$2,523