Mortgage calculator
Your monthly payment, what the loan really costs over its life, and what paying a little extra each month changes.
View yearly schedule
Projections are illustrations based on your inputs, not predictions or advice. Actual returns vary year to year.
What your payment is made of
This calculator covers principal and interest. Your real monthly housing cost also includes property tax, homeowners insurance, possibly mortgage insurance if your down payment is under 20%, and maintenance. A common budget is for those extras to add 30% to 50% on top of principal and interest.
Early in a mortgage most of each payment is interest. On a 400,000 dollar home with 20% down at 6.5%, more than two thirds of the first year's payments go to interest. That is why extra principal payments early in the loan are so powerful: every extra dollar skips straight to reducing the balance that all future interest is computed on.
Compare the total cost figure across terms. A 15 year loan has a higher payment but typically costs far less than half the interest of a 30 year loan.
Common questions
How much house can I afford?
A common guideline is to keep total housing costs under 28% of gross monthly income and total debt payments under 36%. Lenders may approve more, but the guideline protects the rest of your financial life.
Should I pay extra on my mortgage or invest?
Paying extra earns you a guaranteed return equal to your mortgage rate. Investing has historically returned more but with risk. With rates above 6%, extra payments are a strong risk free option. Many people split the difference.
Do extra payments change my monthly payment?
No. Your required payment stays the same. Extra payments shorten the loan and cut total interest, which this calculator quantifies for you.