The formula this calculator uses
Mortgage Calculator
M = P × [r(1+r)^n] / [(1+r)^n − 1]
where r = annual rate ÷ 12, n = years × 12
Example: $300,000 loan, 6.5% for 30 years → Monthly ≈ $1,896
How mortgage payments work
A fixed-rate mortgage spreads the loan principal and interest into equal monthly payments for the entire term. Early payments are mostly interest; later payments are mostly principal. This calculator uses the standard amortization formula used by lenders worldwide.
What this calculator does not include
Property taxes, homeowners insurance, private mortgage insurance (PMI), and HOA fees are not part of the principal-and-interest payment. Add those separately for a full housing-cost estimate.
How to use this calculator
- Enter the required values in the fields above.
- Results update automatically as you type.
- Adjust any input to explore different scenarios.
Frequently asked questions
How is the monthly mortgage payment calculated?
The standard amortization formula uses the loan principal, monthly interest rate, and number of monthly payments to produce a fixed payment that pays off the loan by the end of the term.
Does this include property taxes and insurance?
No. This calculator shows principal and interest only. Taxes, insurance, and HOA fees are extra and usually escrowed separately.
What is amortization?
Amortization is the process of paying off a loan with regular payments that cover both interest and principal, so the balance falls to zero at the end of the term.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but far less total interest. A 30-year loan keeps payments lower and leaves more cash free each month.