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Home Loan Calculator
Estimate your monthly mortgage payment, total interest, and view a full amortization schedule.
Principal vs. Interest
| Year | Principal | Interest | Balance |
|---|
How This Calculator Works
The Formula
Monthly principal and interest is calculated using the standard amortization formula:
Where:
- M = monthly payment (principal + interest only)
- P = loan principal (home price minus down payment)
- r = monthly interest rate (annual rate ÷ 12)
- n = total number of payments (years × 12)
What's Included in "Monthly Payment"
- Principal & Interest — the core loan payment
- Property Tax — annual tax divided by 12
- Homeowners Insurance — annual premium divided by 12
- PMI — private mortgage insurance (if applicable)
About PMI
Private Mortgage Insurance is typically required when your down payment is less than 20% of the home price. PMI costs vary but commonly range from $50–$300/month depending on loan amount and credit profile. PMI can usually be removed once you reach 20% equity.
Frequently Asked Questions
What is the home loan calculator used for?
The home loan calculator estimates the monthly payment, total interest, and full amortization schedule for a residential mortgage. It includes optional inputs for property tax and homeowner's insurance to show a realistic total payment.
Who uses a home loan calculator?
First-time buyers, homeowners considering a refinance, real-estate agents preparing comps, and anyone evaluating two homes at different price points. It is also useful when comparing 15-year and 30-year scenarios.
What problems can a home loan calculator solve?
It clarifies the true monthly cost of a home — not just principal and interest, but taxes and insurance — and shows how much total interest is paid over the loan term. It also lets buyers see how a rate change of even half a point affects affordability.
What questions can a home loan calculator answer?
It answers questions like "What is my monthly payment on a $450,000 home with 10% down at 6.75%?", "How much do I save by choosing a 15-year loan?", and "What does my year-five amortization look like?"