# Simple Mortgage Calculator

URL: https://speedycalculator.com/calculators/finance/simple-mortgage/
Last updated: 2026-10-25

> The simple mortgage calculator works out your monthly mortgage payment from just three numbers – the loan amount, interest rate and term – with total interest and total cost.

## Inputs

- Loan amount
- Interest rate (%)
- Loan term (years, months)

## Results

- Monthly payment
- Total interest
- Total paid

## Formula

```
Monthly payment = P × i ÷ (1 − (1 + i)^−n), i = annual rate ÷ 12, n = years × 12
```

## Explanation

For a quick estimate, principal and interest are all you need. Add property tax, insurance and PMI for your full housing payment with the full mortgage calculator.

### How to use the Simple Mortgage Calculator

- **Loan amount**
- **Interest rate**
- **Loan term**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the loan amount, interest rate and loan term.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterLoan amountAmount in your currencyInterest rateIn %Loan termUnits: years, months

### What each result means

- **Monthly payment** = pmt([Interest rate]÷1200, [Loan term], [Loan amount])
- **Total interest** = [Monthly payment]×[Loan term] - [Loan amount]
- **Total paid** = [Monthly payment]×[Loan term]

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountMonthly payment150,000948.1225,0001,422.15300,0001,896.2375,0002,370.26450,0002,844.31600,0003,792.41

## Worked example

Inputs — Loan amount: $300,000; Interest rate: 6.5 %; Loan term: 30 years.

Results — **Monthly payment = $1,896.20**; Total interest = $382,633.47; Total paid = $682,633.47.

## FAQ

**What is the monthly payment on a $300,000 mortgage?**
About $1,896 at 6.5% over 30 years (principal and interest).

**How does the term affect the payment?**
Shorter terms mean higher payments but much less interest.

**Does this include taxes and insurance?**
No – it shows principal and interest only.

**What formula does the Simple Mortgage Calculator use?**
Monthly payment = P × i ÷ (1 − (1 + i)^−n), i = annual rate ÷ 12, n = years × 12.


## Sources

- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)