How to use the mortgage calculator
- Enter the home price and your down payment (as a percentage or an amount).
- Enter the yearly interest rate and choose the loan term.
- Optionally add property tax (as a % of the home price a year), home insurance, PMI (as a % of the loan a year) and HOA fees to see the full monthly cost.
- Add an extra payment to see how much sooner the loan is paid off and how much interest you save.
Mortgage payment formula
M = L \times \dfrac{r(1 + r)^{n}}{(1 + r)^{n} - 1}M– monthly principal and interest,L– loan amount (price minus down payment)r– monthly rate: yearly rate ÷ 12 ÷ 100,n– number of payments (years × 12)
- Loan: $400,000 − $80,000 = $320,000
r = 6.5 \div 1200 = 0.0054167,\quad n = 360- Monthly principal and interest: $2,022.62
Over 30 years that is $728,142 in payments – $408,142 of it interest.
Monthly payment per 100,000 borrowed
| Rate | 15 years | 20 years | 30 years |
|---|---|---|---|
| 5% | 790.79 | 659.96 | 536.82 |
| 5.5% | 817.08 | 687.89 | 567.79 |
| 6% | 843.86 | 716.43 | 599.55 |
| 6.5% | 871.11 | 745.57 | 632.07 |
| 7% | 898.83 | 775.30 | 665.30 |
| 7.5% | 927.01 | 805.59 | 699.21 |
| 8% | 955.65 | 836.44 | 733.76 |
| 9% | 1,014.27 | 899.73 | 804.62 |
Multiply by your loan in hundreds of thousands: a $350,000 loan at 6.5% for 30 years is 3.5 × 632.07 = $2,212.24 a month.
What else goes into a monthly payment
- Property tax – usually 0.3–2.5% of the home’s value a year in the US, depending on the state.
- Home insurance – often paid monthly into an escrow account with the mortgage.
- PMI (private mortgage insurance) – charged on conventional US loans with less than 20% down, until you owe 80% of the value.
- HOA fees – for condos and planned communities.
For a home loan in India, or any other loan with a fixed EMI, the loan EMI calculator works the same way.
Payments on common mortgage amounts (6.5%, 30 years)
- $100,000$632/month
- $150,000$948/month
- $200,000$1,264/month
- $250,000$1,580/month
- $300,000$1,896/month
- $350,000$2,212/month
- $400,000$2,528/month
- $450,000$2,844/month
- $500,000$3,160/month
- $600,000$3,792/month
- $700,000$4,424/month
- $800,000$5,057/month
- $900,000$5,689/month
- $1,000,000$6,321/month
Frequently asked questions
How is a mortgage payment calculated?
Principal and interest use the standard loan formula M = L × r(1+r)^n ÷ ((1+r)^n − 1), with r the monthly rate and n the number of months. Property tax, insurance, PMI and HOA are then added on top.
What is the monthly payment on a $300,000 mortgage?
At 6.5% for 30 years, about $1,896 in principal and interest. Over 15 years it is about $2,613, but you pay far less interest.
How much do extra payments save?
A lot, because every extra amount reduces the balance that interest is charged on. On a $320,000 loan at 6.5% for 30 years, $200 extra a month saves about $105,000 in interest and pays the loan off more than 6 years early.
What is PMI and when does it stop?
Private mortgage insurance protects the lender on US conventional loans with less than 20% down. You can ask to cancel it when you owe 80% of the original value, and it ends automatically at 78%.
Should I choose a 15- or 30-year mortgage?
A 15-year loan has higher payments but usually a lower rate and much less total interest. A 30-year loan keeps payments low, and you can still pay extra when you can afford it.
Does it work outside the US?
Yes. Choose your currency and leave the US-only costs (PMI, HOA) at zero. For an Indian home loan EMI the result is the same as the loan EMI calculator.