Mortgage Calculator
Estimate your monthly home loan payment including principal and interest.
What You'll Get From This Calculator
Use this calculator to estimate your monthly mortgage payment and understand how your home price, down payment, interest rate, and loan term affect the cost of borrowing. You can also include property taxes, homeowners insurance, PMI, HOA fees, and other housing costs to build a broader estimate of your monthly housing expense.
The calculator also lets you test additional monthly, yearly, and one-time payments so you can compare different repayment strategies and see how extra principal payments may affect your payoff time and total interest.
How to use the mortgage inputs
A mortgage estimate becomes more useful when each number represents the actual home purchase scenario you are considering. Start with the home price and down payment, then enter the interest rate and loan term that match the financing option you are evaluating. If the calculator includes property taxes, homeowners insurance, PMI, HOA fees, or other housing costs, include them when you want a broader estimate of the monthly housing expense rather than only the principal-and-interest payment.
Why the same home can have different monthly costs
Two buyers can purchase homes at the same price and still have different monthly payments because their down payments, interest rates, loan terms, taxes, insurance, and mortgage-related charges may differ. A larger down payment can reduce the amount borrowed, while a longer repayment period can reduce the scheduled monthly principal-and-interest payment but extend the period over which interest is paid. Taxes and insurance are separate housing costs and can materially change the amount a homeowner needs to budget each month.
Use scenarios instead of relying on one estimate
For planning, compare several realistic combinations rather than treating one result as a final quote. You can test a different down payment, interest rate, term, or recurring housing expense and record how the monthly payment and total repayment change. If you experiment with extra payments, compare the resulting payoff time and interest cost as well. The calculator is an estimate based on the information entered, so lender fees, taxes, insurance premiums, rate conditions, and other transaction details should be verified separately before making a financial decision.
Before using the estimate for a purchase
When planning a home purchase, use the result to test a budget range rather than assuming the displayed payment is a guaranteed offer. Mortgage pricing can depend on credit, lender terms, property details, taxes, insurance, and other costs. Comparing scenarios with the same assumptions can help you understand the effect of changing one factor at a time before reviewing an actual loan estimate.
Home price and down payment determine the amount you need to finance, while the interest rate and loan term affect the payment.
Taxes & Housing Costs
Annual Cost Increases
Extra Payments
About the Mortgage Calculator
This Mortgage Calculator estimates monthly mortgage payments and the broader cost of homeownership based on the home price, down payment, interest rate, loan term, and selected housing expenses. It can include property taxes, homeowners insurance, PMI, HOA fees, and other recurring costs to provide a more complete estimate of monthly housing expenses.
The calculator also supports extra monthly, yearly, and one-time principal payments. These options allow you to compare different repayment strategies and see how additional principal payments can affect the loan balance, total interest, and payoff date.
How Mortgage Payments Are Calculated
For a fixed-rate mortgage, the principal and interest payment is calculated using the standard amortization formula. The calculation uses the loan principal, monthly interest rate, and total number of monthly payments.
In this formula, M represents the monthly principal and interest payment, P is the original loan principal, r is the monthly interest rate expressed as a decimal, and n is the total number of monthly payments.
What Is Included in a Mortgage Payment?
The principal and interest payment represents the loan repayment itself. A homeowner's total monthly housing cost may also include property taxes, homeowners insurance, PMI, HOA fees, and other recurring expenses. These costs are separate from the principal and interest portion of the mortgage.
Principal
Principal is the amount borrowed to finance the purchase of the home. Each principal payment reduces the outstanding loan balance.
Interest
Interest is the cost of borrowing money from the lender. With a standard amortizing mortgage, interest is calculated from the outstanding balance, so the interest portion generally decreases as the balance is paid down.
Property Taxes
Property taxes are recurring charges generally assessed by local governments. Their amount varies by location and property value. The calculator converts the annual amount into a monthly estimate and can model an annual increase over time.
Home Insurance
Homeowners insurance is a recurring cost associated with protecting the property against covered risks. Entering an annual insurance estimate allows it to be included in the projected housing cost.
PMI
Private mortgage insurance, or PMI, may be required for certain conventional mortgages, particularly when the down payment is relatively small. PMI requirements and costs vary by lender, loan type, and borrower circumstances.
HOA Fees
Homeowners association fees apply to some properties and help cover services or shared community expenses. They are separate from the mortgage principal and interest payment but can form a significant part of the overall cost of homeownership.
How Down Payment Affects Your Mortgage
A down payment reduces the amount borrowed for the home. For the same interest rate and loan term, borrowing less generally results in a lower principal and interest payment and less interest accruing over the life of the loan.
How Loan Term Affects Total Cost
The loan term determines how many monthly payments are scheduled. A longer term generally produces a lower required monthly principal and interest payment but allows interest to accrue over a longer period. A shorter term generally requires higher monthly payments while reducing the number of months over which interest is charged.
How Extra Payments Can Reduce Interest
Extra payments applied to principal reduce the outstanding balance faster. Because future interest is calculated using the remaining balance, reducing principal sooner can decrease the total interest paid and shorten the time required to repay the loan.
Understanding the Amortization Schedule
An amortization schedule shows the payment period, interest charged, principal repaid, extra principal payments, and remaining loan balance. At the beginning of a typical fixed-rate mortgage, interest represents a larger portion of each payment. As the balance decreases, the principal portion generally becomes larger.
Mortgage Calculator Example
Suppose you are buying a $300,000 home with a $60,000 down payment. With a 6.5% annual interest rate and a 30-year loan term, the amount financed would be $240,000.
This monthly amount represents principal and interest only. Property taxes, homeowners insurance, PMI, HOA fees, and other housing costs can increase the total monthly cost of owning the home.
Frequently Asked Questions
Does the calculator include property taxes?
Yes. Enter the estimated annual property tax and the calculator converts it into a monthly housing expense. You can also specify an annual increase rate to model changes over time.
Can I include homeowners insurance?
Yes. Enter the estimated annual homeowners insurance cost to include it in the projected housing expense.
Can I include PMI and HOA fees?
Yes. The calculator provides separate fields for annual PMI, HOA fees, and other housing costs.
Can I make extra mortgage payments?
Yes. You can enter an additional monthly payment, an additional yearly payment, and a one-time payment. Extra amounts are applied toward principal and can shorten the repayment period.
Do extra mortgage payments reduce interest?
They can. Paying additional principal reduces the outstanding loan balance sooner, which generally reduces the interest charged over the remaining repayment period.
Why can the actual mortgage cost differ from the calculator result?
The calculator uses the values entered by the user to produce an estimate. Actual mortgage costs can vary because of lender terms, taxes, insurance premiums, fees, loan type, PMI requirements, payment dates, and other transaction-specific factors.
Financial Disclaimer
Results are estimates only and should not be considered financial, investment, tax, or legal advice. Please consult a qualified professional before making financial decisions.