How to use this mortgage calculator
This free mortgage calculator gives you a complete picture of what homeownership will actually cost — not just the headline monthly payment. Enter your home price, down payment, loan term, and interest rate to see your full amortization schedule, total interest paid over the life of the loan, and a side-by-side comparison of 15-year vs. 30-year terms.
What's included in the monthly payment estimate?
The calculator breaks your monthly payment into four components:
- Principal & interest — calculated using the standard amortization formula based on your loan amount, interest rate, and term.
- Property taxes — estimated at 1.1% of the home value per year, the national average.
- Homeowner's insurance — estimated at 0.5% of the home value per year.
- PMI — if your down payment is under 20%, Private Mortgage Insurance (~0.5%/yr) is added until you reach 20% equity.
15-year vs. 30-year mortgage: which is right for you?
The 30-year fixed mortgage is the most popular loan in the United States because it offers the lowest monthly payment. But that lower payment comes at a steep cost: on a $400,000 loan at 6.75%, you will pay over $540,000 in total interest on a 30-year term compared to roughly $240,000 on a 15-year term — a difference of $300,000. The 15-year option has a higher monthly payment but you own your home outright in half the time and save hundreds of thousands of dollars in interest. Use the comparison section in your results to see the exact trade-off for your specific loan.
Why your down payment matters more than you think
A larger down payment reduces your loan amount (lowering monthly payments and total interest), and once you hit 20% you eliminate PMI entirely. On a $400,000 home, going from 5% down to 20% down saves roughly $100/month in PMI alone — that's $1,200/year, or $18,000 over the first 15 years before PMI would otherwise cancel. It also means you start with $60,000 in equity on day one instead of $20,000.
Track your full financial picture with Mora
Homeownership introduces new financial complexity — mortgage payments, maintenance reserves, insurance, property taxes, and HOA fees can make it hard to see where your money is actually going. Mora connects to all your accounts and gives you a real-time view of your cash flow, so you always know you can cover your payment and still build wealth on the side.