Simple Mortgage Calculator
Here’s a simple and powerful mortgage calculator that includes options to analyze the impact of points and fees. Interest-only loan modeling is also supported.
What you can calculate:
- Monthly principal & interest payment
- Total interest paid over loan term
- Impact of mortgage points on payment
- Effect of financing closing costs vs. paying out-of-pocket
- Interest-only loan payments
Privacy note: Unlike many online calculators, we never store or save your inputs. It’s your data. We also never share or sell your email address.
Free Mortgage Calculator with Points & Fees
How Do I Calculate My Mortgage Payment?
Use the calculator above for instant results. Just enter your home price, down payment (or loan-to-value %), and interest rate.
Quick example:
- Home price: $400,000
- Down payment: 20% ($80,000)
- Loan amount: $320,000
- Interest rate: 6%
- 30-year term
- Monthly payment: $1,919
What makes this calculator different: Includes support for mortgage points and fees in your calculation, plus it shows total interest paid over the life of the loan. Interest-only loans are also supported.
How to Use This Mortgage Calculator
Step 1: Enter Purchase Price or Current Value
Input the home price you’re considering or your current property value if you’re modeling a refinancing scenario.
Example: $400,000
Step 2: Set Loan-to-Value (LTV) Percentage
Adjust the slider to reflect your expected down payment amount.
Common LTV ratios:
- 80% LTV = 20% down payment (conventional, usually avoids PMI)
- 90% LTV = 10% down payment
- 95% LTV = 5% down payment (FHA-style)
- 75% LTV = 25% down payment (investment property)
The calculator automatically calculates your starting loan amount.
Step 3: Enter Interest Rate
Input the quoted annual interest rate (not APR) as a whole number.
Estimated rates as of February 16, 2026:
- Conventional 30-year: 5.75-6.5%
- FHA 30-year: 5.5-6.0%
- Investment property: 6.25-7.5+%
Note: Rates change daily. Check current rates before making assumptions about where your rate might land.
Step 4: Select Amortization Period
Choose your loan term:
- 30 years (most common, lower payment)
- 15 years (higher payment, less total interest)
- 0 years (interest-only loan)
Tradeoff: Shorter terms mean higher monthly payments but result in significantly less total interest paid over time.
Step 5: Add Points and Fees (Optional)
Mortgage points: Upfront fee to buy down your interest rate (1 point = 1% of loan amount)
Example: 1 point on $320,000 loan = $3,200 cost
Other fees: Origination, appraisal, title insurance, etc. (typically $2,000-$8,000)
Decide: Pay out-of-pocket or add to loan amount? Many lenders will let you finance these costs, up to a limit. The mortgage calculator offers options for both scenarios.
Step 6: Review Results
The mortgage calculator shows:
- Monthly payment (principal + interest)
- Total interest paid over life of loan
- Total upfront costs
- Final loan amount (if financing points/fees)
Common Mortgage Scenarios
Scenario 1: Primary Residence, 20% Down
Purchase price: $400,000
Down payment: 20% ($80,000)
Loan amount: $320,000
Interest rate: 6%
Term: 30 years
Points/fees: $0
Monthly payment: $1,919
Total interest: $370,840
Scenario 2: Investment Property, 25% Down
Purchase price: $300,000
Down payment: 25% ($75,000)
Loan amount: $225,000
Interest rate: 6.5%
Term: 30 years
Points/fees: $0
Monthly payment: $1,422
Total interest: $286,920
Scenario 3: Buying Points to Lower Rate
Purchase price: $400,000
Down payment: 20% ($80,000)
Loan amount: $320,000
Interest rate without points: 6%
Interest rate with points: 5.625%
Term: 30 years
Points: 1.5 ($4,800)
Other fees: $5,000 (closing costs, appraisal, etc.)
Monthly payment at 6%: $1,919
Monthly payment at 5.625%: $1,846
Monthly savings: $73
Break-even calculation:
$4,800 (cost of points) ÷ $73/month = 66 months (about 5.5 years)
Analysis: Probably only worth buying down if you plan to keep the loan 6+ years once you factor in the time value of money (you pay the full $4,800 now but the savings are spread out into the future).
Scenario 4: Interest-Only Loan (Investment Property)
Purchase price: $500,000
Down payment: 30% ($150,000)
Loan amount: $350,000
Interest rate: 7%
Term: 0 (interest-only)
Monthly payment: $2,042 (interest only, no principal)
Total interest: Infinity (never pays down principal so there is no calculated point at which you achieve a zero loan balance)
Note: Principal due as a “balloon payment” at end of the term or when refinancing.
Understanding Your Mortgage Payment
What’s Included in Monthly Payment?
This calculator shows: Principal + Interest only
Your actual payment includes:
- Principal (loan paydown)
- Interest (cost of borrowing)
- Property taxes (if escrowed)
- Homeowners insurance (if escrowed)
- PMI (if down payment <20%)
- HOA fees (if applicable)
Rule of thumb: Add 30-50% to the calculator’s P&I payment to estimate your total monthly housing cost including taxes and insurance.
Example:
- Calculator shows: $2,129 (P&I)
- Add estimated taxes/insurance: $600-800
- Total payment: $2,700-2,900
30-Year vs 15-Year Mortgage
Same $320,000 loan at 6%:
30-year term:
- Monthly payment: $1,919
- Total interest: $370,840
- Payoff: 360 months
15-year term:
- Monthly payment: $2,698
- Total interest: $165,640
- Payoff: 180 months
Difference: Pay $779/month more, save $205,200 in interest
Which to choose: 30-year if you need lower monthly payments. The 15-year could be a good option if you can afford the higher payments and want to build equity faster. If there’s no interest rate discount for the 15-year mortgage, you can of course just do the 30-year and make extra principal payments at your option to shorten the duration of the loan. In reality though, the 15-year mortgage will usually come with a lower rate, which reduces the total interest obligation over the life of the loan even further.
FAQ
Very accurate for principal and interest calculations. It uses standard amortization formulas. However, it doesn’t include property taxes, insurance, or PMI in the monthly payment (those vary by location and property). For total monthly housing cost, add an estimated 30-50% to the calculator’s P&I result.
Interest rate: The rate used to calculate your monthly payment (what you enter in this calculator).
APR (Annual Percentage Rate): Includes interest rate plus fees, points, and closing costs expressed as a yearly rate.
Example: 7% interest rate might have 7.25% APR after including $5,000 in fees. Use interest rate for payment calculations and use APR for comparing loan offers.
This usually depends on how long you’ll keep the loan and the financial resources you have available at the moment. It’s a good idea to calculate the rough break-even point by dividing the upfront cost by the monthly savings.
Example: Pay $4,800 (1.5 points) to save $82/month → Break-even at 59 months (5 years). May be worthwhile if you expect to keep the loan 5+ years.
Generally: Pay points if you have firm plans to keep the home/loan 5+ years. Skip points if you might move or refinance sooner.
Conventional loans:
• 20% usually avoids PMI (private mortgage insurance)
• 5-15% usually requires PMI ($50-200/month typically)
FHA loans:
• 3.5% minimum down payment
• Requires mortgage insurance regardless
Investment properties:
• 20-25% minimum (lenders often require larger down payments for non-owner-occupied purchases)
28/36 rule (lender guideline):
• Total housing costs should be ≤ 28% of gross monthly income
• Total debt payments should be ≤ 36% of gross monthly income
Example: $100,000 annual income = $8,333/month gross
• Max housing payment: $2,333 (28%)
• Max total debt: $3,000 (36%)
Conservative approach: Keep housing under 25% of gross income if possible to maintain financial flexibility.
30-year: Lower payment, more flexibility, more total interest
15-year: Higher payment, less interest, faster equity build
Interest-only: Lowest payment, no equity build, higher risk
Most common: 30-year for primary residence, 15-year for those wanting to pay off faster, interest-only for some investment scenarios.
Yes! Most mortgages allow extra principal payments without penalty. Even $100-200/month extra can save tens of thousands in interest and shave years off your loan.
Example: $320,000 loan at 6%, 30-year amortization
• Regular payment: $1,919/month → Payoff in 360 months, total interest $370,840
• Add $200/month extra: $2,119/month → Payoff in approximately 275 months, total interest ~$290,000
Savings: About $80,000 in interest and 85 months (~7 years)
Lower LTV means lower risk to the lender, which usually results in better rates, but only up to a point.
Potential rate impact by LTV:
80% LTV (20% down): Base rate
85% LTV (15% down): +0.125-0.25%
90% LTV (10% down): +0.25-0.375%
95% LTV (5% down): +0.375-0.5%
Investment properties: Typically require 75-80% LTV max and often have rates 0.5-1% higher than owner-occupied.
Related Calculators & Resources
For rental property investors:
- Rental Property Depreciation Calculator – Calculate tax deductions
- Airbnb Income Calculator – Project vacation rental returns
- RevPAR Calculator – Track short-term rental performance
For understanding costs:
- Property Manager Fees Guide – 8-12% of rent typical
- Landlord Insurance Costs – Reduce insurance expenses
For tax planning:
- Vacation Rental Tax Deductions – What’s deductible
- Depreciation Explained – Understand rental property depreciation
Important Disclaimers
This calculator provides estimates only. Actual loan terms, rates, and payments depend on your credit score, debt-to-income ratio, property type, and lender requirements.
Not included in calculator:
- Property taxes
- Homeowners insurance
- PMI (if down payment <20%)
- HOA fees
- Closing costs beyond points/fees
Always consult with a licensed mortgage professional for accurate quotes and personalized advice. Rates change daily and vary by borrower qualifications.
