Mortgage Calculator

How to use this calculator

Start with the home price and the down payment you expect to make. The calculator subtracts the down payment from the price to find the loan amount, then estimates the monthly cost of borrowing it. Enter a realistic interest rate for the loan you are considering, and choose a loan term.

Property tax and homeowners insurance are entered as annual amounts, because that is how they are usually quoted; the calculator divides them across 12 months. Mortgage insurance (PMI) is also annual, and HOA dues are monthly. Leave any field at zero if it does not apply to you.

Try several scenarios rather than one. Raising the interest rate by half a point, lowering the price, or comparing a 15-year term with a 30-year term will show you how sensitive the payment is to each input.

How the payment is calculated

The principal-and-interest portion uses the standard fixed-rate amortization formula, based on three inputs: the loan amount, the interest rate, and the number of monthly payments in the term. That figure stays the same each month for a fixed-rate loan.

The calculator then adds the other recurring costs to produce the estimated monthly payment:

principal and interest + property tax + homeowners insurance + mortgage insurance + HOA dues

Total interest over the term is the scheduled principal-and-interest payment multiplied by the number of months, minus the amount borrowed. The Consumer Financial Protection Bureau explains that a full monthly housing payment commonly includes taxes and insurance in addition to principal and interest, which is why the total here is higher than principal and interest alone.

Assumptions

• The interest rate is fixed for the entire loan term.
• Payments are made on schedule, with no extra or missed payments.
• Property tax, insurance, and mortgage insurance are spread evenly across 12 months.
• Mortgage insurance is treated as a constant annual amount for as long as you include it.
• Taxes, insurance premiums, and HOA dues do not change over time.
• Results are rounded to whole dollars for display.

Limitations

• This is an educational estimate, not a loan offer, approval, or a lender quote. Your actual rate and costs depend on the lender, the loan type, and your financial circumstances.
• It does not include closing costs, moving costs, maintenance, repairs, or utilities.
• It does not model adjustable-rate mortgages, discount points, or escrow adjustments.
• Property taxes and insurance can change over time, so a fixed-rate loan can still have a changing total monthly payment in real life.
• Mortgage insurance can often be removed once you build enough equity, which this calculator does not do automatically.

Frequently asked questions

Why is my total higher than the principal and interest?

The total monthly payment adds property tax, homeowners insurance, mortgage insurance, and HOA dues to principal and interest. Many buyers focus only on principal and interest and are surprised by the full figure. See How Mortgage Payments Work for a full explanation.

What down payment avoids mortgage insurance?

For conventional loans, private mortgage insurance is commonly required when the down payment is under 20 percent, although the exact rules depend on the loan. If you plan to put down 20 percent or more, you can set the mortgage insurance field to zero.

Does a shorter loan term save money?

A shorter term usually means a higher monthly payment but less total interest, because you borrow for fewer years. Compare a 15-year and a 30-year term in the calculator to see both the monthly payment and the total interest change.

Is this my exact payment?

No. It is a planning estimate. When you formally apply for a mortgage, the lender’s Loan Estimate is the authoritative document for the specific loan being offered.