Mortgage Calculator - Payments & Amortization

How the Mortgage Calculator Works

1. 01Enter the home price and your down payment amount
2. 02Set the annual interest rate and loan term in years
3. 03Choose your preferred payment frequency (monthly, bi-weekly, or weekly)
4. 04View your payment amount, total cost breakdown, and full amortization schedule

Understanding Mortgage Payments

A mortgage payment consists of principal (the amount that reduces your loan balance) and interest (the cost of borrowing). In the early years of a mortgage, most of your payment goes toward interest. As you pay down the principal, the interest portion decreases and more goes toward the principal. This is why extra payments early in the loan term can save significant interest. The amortization schedule shows this shift month by month.

When to Use a Mortgage Calculator

Use this calculator when shopping for a home to understand what you can afford, when comparing mortgage offers from different lenders, or when deciding between different down payment amounts and loan terms. It is also useful for existing homeowners considering refinancing to see if a lower rate would save money. Real estate agents and financial advisors use mortgage calculators to help clients make informed decisions.

Common Use Cases

• —Comparing monthly payments for different home prices and down payment amounts
• —Understanding total interest costs over 15-year vs 30-year loan terms
• —Evaluating bi-weekly vs monthly payment schedules to save on interest
• —Determining an affordable home price based on your monthly budget

Expert Tips

• ✻Compare 15-year and 30-year terms - the shorter term has higher payments but dramatically less total interest
• ✻Even small rate differences (0.25%) can mean thousands over a 30-year mortgage - shop around for the best rate
• ✻Making one extra payment per year or rounding up your monthly payment can shave years off your mortgage

Frequently Asked Questions

How is the monthly mortgage payment calculated?→

The formula uses the loan amount, interest rate, and number of payments: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the principal, r is the monthly interest rate (annual rate / 12), and n is the total number of payments. This produces a fixed payment amount that fully repays the loan over the term.

How much should my down payment be?→

A 20% down payment is traditionally recommended to avoid private mortgage insurance (PMI) and get better interest rates. However, many loan programs accept 3-10% down. A larger down payment reduces your monthly payment and total interest. Use this calculator to compare different down payment scenarios.

Does bi-weekly payment really save money?→

Yes. With bi-weekly payments, you make 26 half-payments per year, which equals 13 full monthly payments instead of 12. This extra payment goes directly toward principal, reducing the loan term and total interest. On a 30-year mortgage, bi-weekly payments can save tens of thousands and pay off the loan 4-5 years early.

What is the loan-to-value (LTV) ratio?→

LTV is the loan amount divided by the home price, expressed as a percentage. An LTV of 80% means you are borrowing 80% of the home value (20% down payment). Lenders use LTV to assess risk - lower LTV means lower risk, which typically results in better interest rates and no PMI requirement.

Is this mortgage calculator free?→

Yes, completely free with no sign-up required. All calculations happen in your browser. Your financial data is never sent to any server or stored anywhere.