Finance & Loans
Mortgage Calculator
Monthly payment · Total interest · Full amortization schedule · Updated for 2025
How to Use This Mortgage Calculator
Enter your home price, down payment amount, interest rate, and loan term. The result bar updates live as you type — showing your principal & interest payment, total monthly cost, and lifetime interest paid. Click "Calculate" for the full amortization schedule and breakdown tiles.
What Is a Good Mortgage Rate in 2025?
Average 30-year fixed mortgage rates in 2025 range from 6.5% to 7.5%. Your specific rate depends on your credit score, down payment size, loan type (conventional, FHA, VA), and the lender. Borrowers with credit scores above 740 typically qualify for rates 0.5–1% below the market average — which on a $400,000 loan saves over $40,000 in interest over 30 years.
The 28/36 Affordability Rule
Financial advisors recommend that your monthly mortgage payment should not exceed 28% of your gross monthly income, and total debt payments (including car loans, student loans, and credit cards) should stay below 36%. On a $90,000/year salary, that means a maximum mortgage payment of roughly $2,100/month.
30-Year vs 15-Year — Which Is Better?
- 30-year mortgage — Lower monthly payment, significantly more interest paid over the life of the loan, better cash flow flexibility
- 15-year mortgage — Higher monthly payment, roughly half the total interest, builds equity twice as fast
- On a $300,000 loan at 6.8%, a 30-year term costs ~$354,000 in interest vs ~$145,000 for a 15-year term — a $209,000 difference
Frequently Asked Questions
Does this calculator include PMI?
+
This calculator does not include PMI (Private Mortgage Insurance). PMI is typically required when your down payment is less than 20% of the home price. It usually adds 0.5%–1.5% of the loan annually to your payment. If your down payment is below 20%, add approximately $100–$250/month to this calculator's result.
How much does extra payment really save?
+
Making one extra monthly payment per year can shorten a 30-year mortgage by 4–5 years and save tens of thousands in interest. On a $300,000 loan at 7%, one extra payment annually saves approximately $52,000 in interest and cuts 4.5 years off the loan.
What credit score do I need for the best rate?
+
Conventional loans generally require a minimum 620 credit score. FHA loans accept scores as low as 500–580 with a larger down payment. The best mortgage rates are typically reserved for borrowers with scores of 740 or above. Improving your score from 680 to 740 before applying can reduce your rate by 0.25–0.5%, saving thousands over the loan term.
How is the monthly mortgage payment calculated?
+
The principal and interest payment uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P = loan principal, r = monthly interest rate (annual rate ÷ 12), and n = total number of payments. Property tax and insurance are added as monthly estimates on top of this base payment.