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Mortgage Calculator Calculate monthly mortgage payments, total interest, and view amortization schedule.

Mortgage Calculator illustration
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Mortgage Calculator

Calculate monthly mortgage payments, total interest, and view amortization schedule.

1

Enter Loan Details

Input home price, down payment, interest rate, and loan term.

2

View Monthly Payment

See your estimated monthly payment with a principal vs interest breakdown.

3

Explore Amortization

Review the first year of the amortization schedule showing how each payment is split.

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What Is Mortgage Calculator?

A mortgage calculator estimates your monthly home loan payment based on the loan amount (home price minus down payment), annual interest rate, and loan term. It uses the standard amortization formula to compute a fixed monthly payment where each installment covers both interest (on the remaining balance) and principal (reducing the loan balance). Early payments are mostly interest, while later payments are mostly principal — a phenomenon known as front-loaded interest. The calculator shows total interest paid over the life of the loan, which often exceeds the original loan amount for long-term mortgages. It also provides a first-year amortization schedule showing how each monthly payment is split between principal and interest, plus a visual bar showing the overall principal-to-interest ratio.

Why Use Mortgage Calculator?

  • Instant monthly payment estimation with down payment support
  • Total interest visualization over the life of the loan
  • First-year amortization schedule table
  • Principal vs interest ratio visualization
  • Compare scenarios by adjusting rate and term

Common Use Cases

Home Buying

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

Refinancing Analysis

Compare current mortgage terms with potential refinancing options.

Down Payment Planning

See how different down payment amounts affect monthly payments and total interest.

Term Comparison

Compare 15-year vs 30-year mortgage costs to make informed decisions.

Technical Guide

The monthly payment is calculated using the formula M = P[r(1+r)^n]/[(1+r)^n − 1], where P is the principal (loan amount), r is the monthly interest rate (annual rate / 12), and n is the total number of payments (years × 12). For each payment in the amortization schedule, interest is calculated as the remaining balance × monthly rate, and the principal portion is the payment minus interest. The remaining balance decreases by the principal portion each month. This creates front-loaded interest: in the first year of a $200,000 30-year loan at 6.5%, about 77% of each payment goes to interest. By the last year, about 99% goes to principal. When the interest rate is 0%, the formula simplifies to M = P/n. Total interest = (M × n) − P.

Tips & Best Practices

  • 1
    A larger down payment reduces both monthly payments and total interest
  • 2
    A 15-year mortgage costs much less in total interest than a 30-year mortgage
  • 3
    Even 0.5% lower interest rate can save tens of thousands over the loan life
  • 4
    Extra payments toward principal can dramatically shorten the loan term
  • 5
    This calculator gives estimates — actual payments may include taxes and insurance

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Frequently Asked Questions

Q What is an amortization schedule?
It's a table showing each payment broken down into principal and interest portions, plus the remaining balance after each payment. Early payments are mostly interest.
Q How does the down payment affect my mortgage?
A larger down payment means a smaller loan, which reduces both monthly payments and total interest. Putting 20%+ down also avoids private mortgage insurance (PMI).
Q Should I choose 15 or 30 years?
15-year mortgages have higher monthly payments but much lower total interest. A 30-year gives flexibility. Compare both to find your best balance.
Q Does this include taxes and insurance?
This calculator shows principal and interest only. Actual monthly payments often include property tax, homeowner's insurance, and PMI escrow.
Q What is front-loaded interest?
In the early years, most of your payment goes to interest. As the balance decreases, more goes to principal. This is a natural result of the fixed-payment amortization formula.
Q How much can extra payments save?
Even small extra monthly payments can save thousands in interest and shorten the loan term significantly. Apply extra payments directly to principal.

About This Tool

Mortgage Calculator is a free online tool by FreeToolkit.ai. All processing happens directly in your browser — your data never leaves your device. No registration or installation required.