Calculate Your Mortgage Costs

Calculate your monthly mortgage payment with precision. Enter your loan details below to estimate payments, understand interest costs, and explore how extra payments can save you money and time.

Mortgage Amount

Enter the total loan amount you need to borrow (home price minus your down payment). Use the slider below for quick adjustments.

Payment Frequency

Choose how often you make payments. Monthly = 12 payments/year, Bi-Weekly = 26 payments/year (faster payoff), Weekly = 52 payments/year (fastest payoff).

Interest Rate & Terms

Set your mortgage interest rate and loan terms. The interest rate determines how much you pay to borrow money. Rate term is how long your interest rate is guaranteed (you'll renew after this period). Amortization period is the total time to pay off your entire mortgage - longer periods mean lower monthly payments but more total interest paid. Fixed rates stay the same throughout the term, while variable rates can change with market conditions.

Interest Rate

Rate Term

Amortization Period

Interest Type

Pay Off Mortgage Faster

Show Extra Payment Options

Accelerate your mortgage payoff and save thousands in interest with extra payments. Even small additional amounts can dramatically reduce your mortgage term and total interest costs. Every extra dollar goes directly to your principal balance, reducing future interest charges and building equity faster. Use the options below to see how much time and money you could save.

Show Extra Payment Options

Recurring Extra Payment

Add a fixed amount to every regular payment. For example, adding $100 monthly to a $1,500 payment means you'll pay $1,600 each month, with the extra $100 going directly to principal.

One-Time Extra Payment

Make a lump sum payment in a specific year, such as from a bonus, inheritance, or tax refund. Enter the amount and the year you plan to make this payment.

How Extra Payments Work

When you make extra payments, that money goes directly toward your loan principal (the amount you borrowed), not interest. This reduces your balance faster, which means:

Less interest accumulates each month (since interest is calculated on a lower balance)
More of your regular payment goes to principal instead of interest
Your loan is paid off months or years earlier
You save thousands in total interest costs

Example: On a $300,000 mortgage at 4% for 25 years, adding just $100 monthly could save over $30,000 in interest and pay off your mortgage 4 years early!

Your Mortgage Payment

$456.95 Monthly

Principal $100,000

Interest per period $354.17

Total Payment per period

$456.95 Monthly

Payment Breakdown

Principal: The total amount you're borrowing
Interest per period: The cost of borrowing money for each payment period
Total Payment: Your complete payment amount including principal and interest

Early in your mortgage, most of your payment goes to interest. Over time, more goes to principal as your balance decreases.

How to Calculate Your Mortgage Payment

Figuring out your mortgage payment is easier than you think. Here's everything you need to know to calculate your monthly costs and use our mortgage calculator effectively.

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The Basic Formula

Your mortgage payment is calculated using this formula:

Monthly Payment = Loan Amount × [r(1 + r)ⁿ] / [(1 + r)ⁿ - 1]

Where:

Loan Amount = How much you're borrowing
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments

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Step-by-Step Example

Let's calculate a $300,000 mortgage at 4.5% for 25 years:

Convert annual rate to monthly: 4.5% ÷ 12 = 0.375% = 0.00375
Calculate total payments: 25 years × 12 months = 300 payments
Apply the formula:
- $300,000 × [0.00375 × (1.00375)³⁰⁰] / [(1.00375)³⁰⁰ - 1]
- Result: $1,674 per month

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How to Use the Mortgage Calculator

1. Enter Your Loan Details

Mortgage Amount: Enter the total you plan to borrow
Interest Rate: Input your annual interest rate (like 4.25%)
Payment Frequency: Choose monthly, bi-weekly, or weekly
Amortization Period: Select how long you'll take to pay it off (like 25 years)

2. Adjust Settings

Rate Term: How long your interest rate is locked in
Interest Type: Fixed (stays the same) or variable (can change)

3. Add Extra Payments (Optional)

Recurring Extra: Add a fixed amount to each payment
One-Time Payment: Make a lump sum payment in a specific year

4. Review Your Results

The calculator shows:

Your payment amount per period
How much goes to principal vs. interest
Total payment breakdown

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Quick Calculation Tips

Rule of Thumb

Every $100,000 borrowed at 4-5% over 25 years costs roughly $500-600 per month.

Interest vs. Principal

In early payments, most money goes to interest. Over time, more goes toward paying down your loan balance.

Extra Payment Impact

Adding just $100 monthly to a typical mortgage can save 3+ years and $30,000+ in interest.

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Frequently Asked Questions

What's included in my mortgage payment?

Your basic mortgage payment covers principal (loan repayment) and interest only. Property taxes, home insurance, and mortgage insurance are often added separately, making your total monthly housing payment higher.

Should I choose a longer or shorter amortization period?

Longer periods (like 30 years) mean lower monthly payments but much more total interest paid. Shorter periods (like 15-20 years) have higher monthly payments but save tens of thousands in interest over time.

What's the difference between bi-weekly and monthly payments?

Bi-weekly payments result in 26 payments per year (equivalent to 13 monthly payments), helping you pay off your mortgage 3-4 years faster. Monthly payments are 12 per year and are the most common option.

How much does a 1% interest rate difference matter?

A lot! On a $300,000 mortgage, a 1% higher rate costs about $180 more per month and roughly $50,000+ more over the life of the loan.

Should I make extra payments or invest the money instead?

If your mortgage rate is higher than what you can reliably earn investing, pay down the mortgage first. If you can earn more investing (and you're comfortable with the risk), invest the extra money instead.

What's mortgage insurance and when do I need it?

Mortgage insurance protects the lender if you default on your loan. You typically need it if your down payment is less than 20% of the home's value, adding $100-300+ to your monthly payment.

Can I pay off my mortgage early without penalties?

Most mortgages allow extra payments, but some have prepayment penalties for paying off large amounts early. Check your mortgage terms or ask your lender about prepayment options and any associated fees.

What happens if interest rates change after I get my mortgage?

With a fixed-rate mortgage, your rate stays the same for the entire term. With a variable-rate mortgage, your payment can go up or down when rates change, typically affecting your payment within 30-60 days.

How do I know if I'm getting a good interest rate?

Shop around with multiple lenders and compare rates for the same loan terms. Rates vary based on your credit score, down payment, loan amount, and current market conditions.

What's the minimum down payment I need?

This depends on your loan type and lender, but typically ranges from 3-20% of the home's purchase price. Higher down payments often get you better interest rates and eliminate mortgage insurance requirements.

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