WealthCalcs

Mortgage Calculator

Enter your home price, down payment, rate, and term to see your monthly payment.

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Results

Monthly Payment

$2,022.62

Loan Amount

$320,000

Total Interest

$408,142

Total Cost

$808,142

LTV Ratio

80.0%

How to Calculate Your Mortgage Payment

Your monthly mortgage payment is determined by your loan amount (home price minus down payment), the interest rate, and the loan term. The standard formula is: M = P[r(1+r)^n] / [(1+r)^n – 1], where r is the monthly rate and n is the number of payments.

A higher down payment reduces your loan amount and may help you avoid private mortgage insurance (PMI), which lenders typically require when your LTV ratio exceeds 80%.

Shorter loan terms mean higher monthly payments but significantly less interest paid overall. A 15-year mortgage at 6.5% costs nearly half the total interest of a 30-year loan on the same amount.