A mortgage payment is the monthly amount that repays the loan with interest, often with property tax, insurance and HOA added. The calculator takes the price, down payment, rate and term and returns the principal-and-interest payment, the full monthly cost and the amortization over time.
Calculate monthly mortgage payments, total interest, and loan costs. Essential for real estate exam prep and home buyers.
Purchase price of the property
20.0% of home price
Annual interest rate
Common terms: 15 or 30 years
Input the home purchase price and your planned down payment amount.
Enter your interest rate and choose your loan term (typically 15 or 30 years).
Instantly see your monthly payment, total interest, and key loan ratios.
Where: M = Monthly payment, P = Principal, r = Monthly interest rate, n = Number of payments
A mortgage is likely the largest financial commitment you'll ever make, which is why understanding how mortgage payments work is essential. Our free mortgage calculator helps you quickly determine your monthly payment based on the home price, down payment, interest rate, and loan term. Whether you're a first-time homebuyer or preparing for your real estate licensing exam, mastering these calculations is crucial for making informed financial decisions.
Monthly mortgage payments are calculated using an amortization formula that ensures each payment covers both principal and interest. In the early years of your loan, most of your payment goes toward interest. Over time, more of each payment goes toward principal as the loan balance decreases. This is why making extra principal payments early in the loan can save significant money in interest over time.
Your down payment directly affects your loan amount, monthly payment, and whether you'll need to pay Private Mortgage Insurance (PMI). A larger down payment means lower monthly payments and less interest paid over the life of the loan. Putting down at least 20% also eliminates the need for PMI, which can save you hundreds of dollars per month.
Real estate licensing exams frequently test mortgage calculations, including monthly payment formulas, loan-to-value ratios, and qualification criteria. Understanding how to calculate payments and interpret loan terms will help you pass your exam and provide better service to clients as a licensed real estate professional. Use this calculator to practice different scenarios and build your understanding.
Master mortgage calculations with our practice exam questions.
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Key facts
Monthly payment = loan × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the annual rate divided by 12 and n is the number of monthly payments.
Principal and interest of $1,769.79 a month; about $357,125 of interest over 30 years. Property tax, insurance and HOA are added on top.
A mortgage payment has principal and interest, the part that repays the loan, and usually escrow for property tax and homeowners insurance, often written PITI. If the down payment is under 20% on a conventional loan, private mortgage insurance is added. HOA dues are paid separately but count in the monthly cost.
On a $280,000 30-year loan, each half point of rate moves the payment by roughly $90 a month: 6.0% is about $1,679, 6.5% is $1,770, 7.0% is about $1,863. Over 30 years that half point is around $33,000 of interest, which is why buyers compare quotes.
A 15-year loan has a higher monthly payment but far less total interest, because the balance falls faster and the rate is usually lower. On $280,000 at 6.0%, the 15-year payment is about $2,363 against $1,679 for 30 years, and total interest drops from about $324,000 to about $145,000.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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