MoneyFree, ad-light financial calculators for India, the US and the Gulf – each with the formula, a worked example and a quick-reference table.
Estimate the principal-and-interest payment on a home loan and the total cost over the term.
Formula
Payment = L × r(1+r)n / [(1+r)n − 1] where L = price − down payment
Worked example
A $400,000 home with $80,000 down (loan $320,000) at 6.5% for 30 years: principal & interest ≈ $2,023/month. Over 30 years you pay about $728,000, of which $408,000 is interest.
Quick reference
| Loan | 15 yr @ 6.5% | 30 yr @ 6.5% |
|---|---|---|
| $200,000 | $1,742 | $1,264 |
| $300,000 | $2,613 | $1,896 |
| $500,000 | $4,355 | $3,160 |
Principal & interest only.
Frequently asked questions
What is included in a mortgage payment?
A mortgage payment usually has four parts (PITI): principal, interest, property taxes and homeowners insurance - plus private mortgage insurance (PMI) if the down payment is under 20%. This calculator shows principal and interest; use the US PITI calculator for the full figure.
How much house can I afford?
A common guideline is that total housing costs stay under 28% of gross monthly income and all debt under 36%. Lenders also look at your credit score, down payment and reserves.