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Mortgage Calculator

The standard mortgage payment formula M = P[r(1+r)^n]/[(1+r)^n-1] determines your estimated monthly payment based on loan amount, interest rate, and term length. Enter your loan details below to see estimated payment amounts, total interest, and a breakdown of principal versus interest.

Quick Answer

A $300,000 mortgage at 6.5% for 30 years has an estimated monthly payment of approximately $1,896. Total interest paid over the life of the loan is approximately $382,633.

Common Examples

Input Result
$200,000 at 6% for 30 years Estimated $1,199/month
$300,000 at 6.5% for 30 years Estimated $1,896/month
$400,000 at 7% for 15 years Estimated $3,595/month
$250,000 at 5.5% for 30 years Estimated $1,419/month

How It Works

This calculator uses the standard amortization formula to estimate fixed-rate mortgage payments:

M = P × [r(1 + r)^n] / [(1 + r)^n − 1]

Where:

  • M = estimated monthly payment
  • P = principal (loan amount)
  • r = monthly interest rate (annual rate ÷ 12)
  • n = total number of payments (years × 12)

The estimated total paid is M × n, and the estimated total interest is the total paid minus the principal.

For a 0% interest rate, the estimated monthly payment is simply the principal divided by the number of months.

Worked Example

For a $300,000 loan at 6.5% annual interest over 30 years: the monthly rate r = 0.065/12 = 0.005417, and n = 360 payments. Plugging into the formula: M = 300000 x [0.005417(1.005417)^360] / [(1.005417)^360 - 1] = 300000 x [0.03678] / [5.792] ≈ $1,896.20 per month. Over 30 years, total payments come to approximately $682,633, meaning roughly $382,633 goes to interest.

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Frequently Asked Questions

How is the monthly mortgage payment estimated?
The calculator uses the standard amortization formula, which assumes a fixed interest rate and equal monthly payments over the life of the loan. The estimated payment includes principal and interest only. It does not include property taxes, homeowner's insurance, or PMI.
Does this calculator account for property taxes and insurance?
No. This calculator estimates the principal and interest portion of a mortgage payment only. Your actual monthly housing cost will typically be higher when property taxes, homeowner's insurance, and potentially PMI are included.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus other fees and costs associated with the loan, giving a broader picture of total borrowing cost. This calculator uses the interest rate, not APR.
How accurate are these estimates?
The calculations use the standard amortization formula and are mathematically accurate for the inputs provided. However, actual mortgage payments may differ based on rounding practices, fees, taxes, insurance, and other factors specific to your loan.

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