Mortgage Calculator - 5% Down Payment
Calculate mortgage payments with just 5% down, common for first-time buyers.
ScenarioBased on Mortgage Calculator →
USD
USD
%
Monthly Payment
$2,156.59
Total Amount Paid$776,371.92
Total Interest Paid$443,871.92
Principal
Total Interest
Monthly Payment vs Interest Rate
How to Calculate Your Mortgage Payment
The mortgage payment formula calculates your monthly principal and interest payment based on the loan amount, interest rate, and loan term.
Formula
M = P * [r(1+r)^n] / [(1+r)^n - 1]
Where:
How It Works
1. Calculate your loan principal by subtracting the down payment from the home price 2. Convert the annual interest rate to a monthly rate 3. Determine the total number of monthly payments 4. Apply the amortization formula to find the fixed monthly payment
Example Calculation
You want to buy a $300,000 home with a $60,000 down payment (20%) at a 6.5% annual interest rate for a 30-year fixed mortgage.
- 01Calculate the loan principal: $300,000 - $60,000 = $240,000
- 02Convert annual rate to monthly: 6.5% / 12 = 0.5417% (0.005417)
- 03Calculate total payments: 30 * 12 = 360 monthly payments
- 04Apply the formula: M = $240,000 * [0.005417 * (1.005417)^360] / [(1.005417)^360 - 1]
- 05Monthly Payment = $1,517.09
- 06Total amount paid over 30 years: $1,517.09 * 360 = $546,152.40
- 07Total interest paid: $546,152.40 - $240,000 = $306,152.40