Mortgage Calculator
Enter your home price, down payment, rate, and term to see your monthly payment.
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 three things: the loan amount (home price minus down payment), the interest rate, and the loan term. The standard amortization formula is , where P is the loan principal, r is the monthly interest rate, and n is the total number of payments. For a $320,000 loan at 6.5% over 30 years, this works out to $2,022/month, plus property taxes and insurance on top.
Putting down 20% or more eliminates private mortgage insurance (PMI), which typically costs 0.5–1.5% of the loan amount per year (roughly $100–$250/month on a $300,000 loan). PMI protects the lender, not you, and adds no equity value. If you can't reach 20%, plan to request PMI removal once your equity crosses that threshold.
Choosing a 15-year term over 30 years cuts total interest nearly in half, but raises your monthly payment by 40–50%. On a $320,000 loan at 6.5%, the 30-year payment is $2,022 and total interest paid is $408,000. The 15-year payment is $2,791 but total interest is just $182,000, saving you $226,000. The right choice depends on your cash flow and what else you could do with that $769/month difference.
Your actual monthly cost will include principal, interest, property taxes, homeowner's insurance, and possibly HOA fees and PMI. Lenders qualify you on the full PITI (principal, interest, taxes, insurance) payment, not just P&I. Budget an additional 1.5–2% of home value per year for taxes and insurance when estimating your true monthly cost.
Frequently Asked Questions
How much house can I afford on my salary?
A common guideline is that your home price should be no more than 2.5–3× your gross annual income. On a $100,000 salary, that's $250,000–$300,000. However, your debt load, down payment, and local property taxes all affect the real number. Use our Home Affordability Calculator for a more precise estimate based on the 28/36 DTI rule lenders actually use.
What is a good mortgage interest rate?
Mortgage rates change daily based on the federal funds rate, bond markets, and lender competition. Historically, rates below 5% are considered excellent and above 7% are high by recent standards. Your personal rate depends on your credit score, down payment, loan type, and lender. Shopping at least 3 lenders can save thousands over the life of the loan.
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage saves significantly on total interest and builds equity faster, but the higher monthly payment reduces flexibility. A 30-year mortgage has lower required payments, giving you the option to invest the difference or handle unexpected expenses. If you can comfortably afford the 15-year payment and have an emergency fund, the 15-year is usually the better financial choice.
Does making extra mortgage payments help?
Yes, and the effect adds up. Even one extra payment per year on a 30-year mortgage can cut the loan term by 4–6 years and save tens of thousands in interest. Apply extra payments directly to principal (specify this with your lender). A biweekly payment schedule achieves the same effect automatically by producing 13 full payments per year instead of 12.