How to use it
- Enter loan amount, annual interest rate, and term in years.
- Click Calculate.
- Read monthly payment, total interest, and total of payments.
This tool computes your monthly mortgage payment, total interest paid over the life of the loan, and the total of all payments. Enter the loan amount, annual interest rate, and term in years. The results help you compare loan options, budget for housing costs, and understand how much interest you will actually pay.
The monthly payment figure is the core number — it tells you exactly what you owe each month. Total interest reveals the true cost of borrowing, often surprising first-time buyers. Total of payments adds principal and interest together for the full picture.
Use these numbers when pre-approving, negotiating rates, or deciding between a 15-year and 30-year loan. A lower rate or shorter term reduces total interest significantly. Pair this calculator with a lender quote to verify your numbers before applying.
Pro tips
- Add 1–2% allowance for unexpected fees and closing costs.
- Round up the loan amount to the nearest thousand for a safety buffer.
- Compare total interest, not just monthly payment, when choosing terms.
- Remember property tax and insurance are not included here.
Real-life examples
- First-time buyer estimating monthly budget before house hunting.
- Refinancing to compare new vs current payment and interest savings.
- Homeowner deciding between 15-year and 30-year loan terms.
Case study
A buyer compared two loan terms using the calculator. The shorter term had a higher monthly payment but saved hundreds of thousands in interest. Seeing the total interest side-by-side helped them choose the better option before talking to a lender.