Mortgage Calculator
Estimate your monthly payment, total interest, and true cost of your loan.
Frequently Asked Questions
What is the monthly payment on a $400,000 mortgage?
At 6.5% interest over 30 years with a 20% down payment ($80,000), your loan is $320,000 and the monthly principal & interest payment is approximately $2,023. Property taxes, insurance, and PMI will increase your total monthly cost.
How is a mortgage payment calculated?
The formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). This gives the fixed monthly principal + interest payment.
How much house can I afford?
A common guideline is the 28/36 rule: your monthly mortgage payment should not exceed 28% of gross monthly income, and total debt payments should not exceed 36%. For a $100,000 annual salary, that means a mortgage payment under ~$2,333/month.
What is the difference between interest rate and APR?
The interest rate is the base cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus lender fees, points, and mortgage insurance — making it a more complete measure of the loan's true annual cost. APR is always equal to or higher than the interest rate.
How much of my mortgage payment goes to interest vs principal?
In the early years, most of your payment goes to interest. On a 30-year $300,000 loan at 6.5%, your first payment splits roughly $1,625 to interest and $271 to principal. Over time this flips: by year 25, most of each payment is principal. The amortization schedule shows this breakdown month by month.