Mortgage Calculator

How Mortgage Payments Are Calculated

This calculator uses the standard fixed-rate mortgage formula:

M = P × r(1+r)ⁿ / ((1+r)ⁿ - 1)

• M = Monthly payment
• P = Loan principal (the amount you borrow)
• r = Monthly interest rate (annual rate / 12)
• n = Total number of monthly payments (years × 12)

Results update in real-time as you adjust the inputs. The interest-to-total ratio shows what percentage of your total payment goes toward interest versus principal.

Tips for Mortgage Borrowers

• Shorter terms save money: A 15-year mortgage has higher monthly payments but significantly less total interest compared to a 30-year loan.
• Extra payments matter: Even small additional monthly payments can shave years off your mortgage and save thousands in interest.
• Shop around for rates: Even a 0.25% difference in interest rate can save tens of thousands of dollars over the life of the loan.
• Consider total cost: Look at total interest paid, not just the monthly payment, when comparing mortgage options.