Boneyard Tools

Mortgage Calculator

Work out the monthly payment on a home loan. Enter the home price, your down payment, the interest rate and the term to see your principal and interest payment, total interest and a year-by-year breakdown.

How to use the mortgage calculator

  1. Enter the home price and the down payment you plan to make.
  2. Set the annual interest rate and the loan term in years (commonly 15 or 30).
  3. Review the monthly payment, total interest and the yearly amortization table.

Examples

300k home, 20% down, 30-year at 6%

Home price 300,000, down payment 60,000, rate 6%, term 30 years
Loan 240,000, monthly payment about 1,438.92 (principal and interest)

Frequently asked questions

Does this include property taxes and insurance?

No. This shows principal and interest only. Your actual housing payment will be higher once property taxes, homeowners insurance, PMI and any HOA dues are added.

How much should I put down?

A 20 percent down payment is a common benchmark because it usually avoids private mortgage insurance. Many loans allow far less down, but a smaller down payment means a larger loan and more interest.

Should I choose a 15-year or 30-year term?

A 15-year loan has higher monthly payments but a lower rate and far less total interest. A 30-year loan keeps payments lower and more flexible, at the cost of paying more interest overall.

How is the monthly payment calculated?

We use the standard amortization formula: the loan amount times the monthly rate, divided by one minus (1 plus the monthly rate) raised to the negative number of months. The monthly rate is the annual rate divided by 12.

What happens if I pay all cash?

If the down payment equals the home price the loan amount is zero, so there is no monthly payment and no interest.

Are the results financial advice?

No. The figures are estimates to help you compare scenarios. Confirm exact numbers, rates and fees with your lender before you commit.

Related tools