How it works
A mortgage payment has two parts: principal (paying down the loan) and interest (the lender's charge). Early in the loan, most of your payment goes to interest; later, more goes to principal.
M = P × r(1+r)n / ((1+r)n − 1)
Where P is the loan amount, r the monthly rate, n the number of payments. Try the extra-payment field — even $100/month extra can shave years off a 30-year loan.
Frequently asked questions
What is a good down payment?
20% avoids private mortgage insurance (PMI) in the US, but many buyers put down 3–10% with loan programs like FHA.
How does loan term affect payment?
Shorter terms (15 vs 30 years) mean higher monthly payments but far less total interest — often saving six figures.
Should I make extra payments?
Extra payments go straight to principal, cutting interest and loan length. Just confirm your lender allows prepayment without penalty.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.