Mortgage Calculator

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Denny Ceizyk and Rene Bermudez | Edited by Crissinda Ponder | Reviewed March 27, 2023


Use our calculator to estimate your monthly mortgage payment amount based on the home price, mortgage term, down payment and interest rate info you enter.

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How to read a mortgage payment schedule

A mortgage amortization schedule may sound (and look!) a bit intimidating, but it’s really very simple. Think of it as a mortgage payment schedule but with a bonus: It also breaks down the equal installments you’ll pay over your mortgage term, showing how much of each payment goes toward principal versus interest. Some important things to understand about mortgage amortization:

  • You’ll pay more interest than principal during the initial years of your home loan repayment
  • You’ll eventually pay more in principal than interest over time
  • Your total principal and interest payment amount never changes
  • You’ll have paid off your mortgage balance when you make the last scheduled payment, unless you have an adjustable-rate mortgage (ARM)

Formula for calculating your mortgage payment

If you’re a math whiz and you’d prefer to make the calculations yourself, here’s the formula embedded in the mortgage calculator:

A = P[r (1+r)n ]/[(1+r)n-1]

A = Payment amount per period 

P = Initial principal (loan amount) 

r = Interest rate per period 

n = Total number of payments or periods

How a home loan calculator helps

There are a lot of decisions to make when you’re buying a home. A mortgage calculator can help you decide whether you should:
Make a larger down payment to get a lower monthly payment

Make a larger down payment to reduce your monthly PMI amount

Choose a shorter term to pay off your mortgage faster

Buy a home in a neighborhood with expensive HOA fees

Buy in an area with high property taxes

Example Monthly Payment Comparison for 10-, 15- and 30-year Loan Terms

The table below shows what this tradeoff would look like for three different repayment terms for a $320,000 loan at today’s interest rates.

30-year loan15-year loan10-year loan
Monthly payment$2,056.41$2,683.08$3,463.33
Interest rate6.66%5.9%5.44%
Total interest$420,306.22$162,955.13$95,600.19
Total cost$740,306.22$482,955.13$415,600.19

As you can see, even small differences in how much you pay monthly can make radical changes in the total cost of a mortgage.

What our mortgage calculator tells you about your PITI

The acronym “PITI” is short for principal, interest, taxes and insurance — the four elements that make up your total mortgage payment. Although it’s not required, most homeowners prefer the convenience of having all four components included in their monthly payments.

A few things are worth noting about the PITI calculations included in our mortgage calculator:

Principal and interest calculations are only for 30- and 15-year fixed-rate terms. Ask your lender about 10-, 20- or 25-year fixed-term options, or ARM programs.

Property taxes may change yearly. The tax authorities in your area may adjust your tax rates, which could cause your PITI payment to fluctuate.

Homeowners insurance premiums can rise. Be prepared to shop around for homeowners insurance rates every year, especially if you see a jump in your premium.

You may cancel your PMI. Lenders only require PMI if you have less than 20% equity in your home. As your home’s value increases, ask your lender about options to remove your PMI.

HOA fees aren’t paid as part of your PITI. Although you’ll have to pay dues if your home is in an HOA community, lenders only use them to qualify you for your mortgage. You’ll pay the HOA fees directly to the association.

How much can you afford to borrow?

Lenders set limits on how much you can afford to borrow based on your debt-to-income (DTI) ratio — this is a measure of your total debt, including your new house payment, divided by your monthly earnings. Our mortgage calculator is based on conventional mortgage guidelines that typically cap your DTI ratio at 45%, although exceptions are possible to 50%.

Example Calculation

Here’s a quick example of how to determine whether you can afford a mortgage, assuming your monthly payment is $2,500 and you make $6,000 per month before taxes:

$2,500 monthly payment divided by $6,000 monthly income = 41.67% DTI ratio

Since the conventional DTI ratio maximum is 45% to 50%, you likely can afford this payment.

You can adjust the DTI ratio on a home affordability calculator to get an idea of home prices that fit within your budget.

How do I lower my mortgage monthly payment?

Try one or all of the following tips to get a smaller monthly mortgage payment:

Choose the longest term possible. A 30-year fixed-rate home loan will give you the lowest payment compared to other shorter-term loans.

Make a bigger down payment. Your principal and interest payments will drop with a smaller mortgage loan amount, and you’ll reduce your PMI expenses. With 20% down, you’ll eliminate the need for any PMI.

Consider an ARM. If you only plan to live in your home for a few years, ask about an ARM. The initial rate is typically lower than fixed rates for a set time period; once the initial low-rate period ends, the rate can adjust based on the ARM term you choose.

Shop for the best rate possible. Studies have shown that comparing quotes from three to five lenders can save you big on your monthly payment and interest charges over your mortgage term.