WiseCalcs

Free Mortgage Calculator — Calculate Your Monthly Payment

Use our free mortgage calculator to estimate your monthly payment, total interest and overall cost. Simply enter your loan amount, interest rate and loan term.

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How Does a Mortgage Calculator Work?

A mortgage calculator uses three key inputs to determine your monthly payment: the loan amount (principal), the annual interest rate, and the loan term in years.

The formula used is the standard amortization formula:

Monthly Payment = P × r(1+r)^n / ((1+r)^n - 1)

Where:

  • P = Principal (loan amount)
  • r = Monthly interest rate (annual rate ÷ 12)
  • n = Number of payments (years × 12)

Understanding Your Mortgage Costs

Your monthly payment is split between interest and principal. In the early years, most of your payment goes toward interest. Over time, more goes toward reducing the principal.

Tips for Getting a Better Mortgage Rate

  • Improve your credit score — A score above 740 typically qualifies for the best rates
  • Increase your down payment — A larger down payment reduces risk for lenders
  • Compare multiple lenders — Rates can vary significantly between banks and brokers
  • Consider the loan term — A 15-year mortgage has higher payments but much less total interest

Frequently Asked Questions

A common rule of thumb is that your monthly mortgage payment should not exceed 28% of your gross monthly income. Use our calculator to work backwards from your budget.
A full mortgage payment often includes principal, interest, property taxes, and homeowner's insurance — sometimes abbreviated as PITI. Our calculator shows the principal and interest portion.
A 15-year mortgage saves significant interest but has higher monthly payments. A 30-year mortgage has lower payments but costs more in total interest. Use the calculator to compare both scenarios.
Amortization is the process of paying off a loan over time through regular payments. Early payments are mostly interest; later payments are mostly principal.
Yes, most mortgages allow early repayment. Making extra principal payments reduces your loan balance faster and saves interest. Check your loan terms for any prepayment penalties.