Mortgage Calculator Usa Zillow
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Reviewed by Calculator Editorial Team
Use this mortgage calculator to estimate your monthly payments, total interest, and affordability based on Zillow's mortgage guidelines. Enter your loan amount, interest rate, and loan term to get an accurate calculation.
How to Use This Calculator
Follow these simple steps to calculate your mortgage payments:
- Enter the home price or loan amount you're considering
- Input the current interest rate (check with your lender)
- Select the loan term in years (15, 20, or 30 years is typical)
- Enter your down payment amount (if any)
- Click "Calculate" to see your estimated monthly payment
The calculator will show you the monthly payment, total interest paid over the loan term, and your total payment including principal and interest.
Mortgage Formula
The mortgage payment is calculated using the standard amortization formula:
Mortgage Payment Formula
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Where:
- M = Monthly payment
- P = Principal loan amount (home price - down payment)
- i = Monthly interest rate (annual rate / 12)
- n = Number of payments (loan term in years × 12)
This formula accounts for the interest you'll pay over the life of the loan and how it affects your monthly payment.
Example Calculation
Let's calculate a mortgage for a $300,000 home with a 3.5% interest rate over 30 years:
| Input | Value |
|---|---|
| Home Price | $300,000 |
| Down Payment | $60,000 (20%) |
| Loan Amount | $240,000 |
| Interest Rate | 3.5% |
| Loan Term | 30 years |
Using the formula:
Calculation Steps
Monthly interest rate = 3.5% / 12 = 0.0029167
Number of payments = 30 × 12 = 360
Monthly payment = $240,000 × [0.0029167(1 + 0.0029167)^360] / [(1 + 0.0029167)^360 - 1]
Monthly payment ≈ $1,432.29
Over 30 years, you would pay approximately $1,432.29 per month, with $435,866.80 in total interest.
Common Questions
What is the difference between fixed and adjustable rate mortgages?
Fixed-rate mortgages have the same interest rate for the entire loan term, while adjustable-rate mortgages (ARMs) have an initial fixed rate that changes after a set period. ARMs typically offer lower initial rates but come with more risk of rate increases.
How much should I put down for a mortgage?
Most lenders require at least 3% down for conventional loans and 5% for FHA loans. A larger down payment reduces your monthly payment and total interest, but it also requires more upfront cash.
What is PMI and when do I need it?
Private mortgage insurance (PMI) protects the lender if you don't have at least 20% equity in your home. It's typically required for conventional loans with less than 20% down and is usually removed once your equity reaches 20%.