Mortgage Calculator

Please enter a home price, a rate, and a down payment smaller than the price.
–principal and interest (monthly)
–total monthly payment
–total interest
–total of loan payments

Estimate only. It does not include mortgage insurance (PMI), closing costs or taxes that change over time. Ask your lender for an exact quote. This is not financial advice.

How to use this calculator

Enter the home price, your down payment, the interest rate and the loan term. You can also add property tax, home insurance and HOA fees to see your full monthly cost. Press Calculate to see the monthly payment, total interest and total paid over the loan.

The formula

Monthly payment = L × r ÷ (1 − (1 + r)−n)
L = loan amount, r = monthly interest rate (annual rate ÷ 12), n = number of monthly payments

Example: A $400,000 home with $80,000 down is a $320,000 loan. At 6.5% for 30 years the principal and interest payment is about $2,022.62 a month, with about $408,142 in total interest.

Understanding your monthly mortgage payment

The mortgage calculator shows the principal and interest payment on your loan, plus optional property tax, insurance and HOA fees. Principal and interest stay the same each month on a fixed-rate loan. Taxes and insurance can rise over time, so the full payment you send each month may change even when the loan does not.

What changes your payment

  • Loan amount. The home price minus your down payment. A bigger down payment lowers the loan and the payment.
  • Interest rate. Even half a point changes the payment and the total interest a lot on a large loan.
  • Loan term. Shorter terms raise the monthly payment but cut total interest sharply.
  • Taxes, insurance and HOA. These can add hundreds of dollars a month on top of the loan payment.

Two examples

A $400,000 home with $80,000 down leaves a $320,000 loan. At 6.5% over 30 years, principal and interest are about $2,022.62 a month, with about $408,142 in total interest. Over 15 years at the same rate, the payment rises to about $2,787.54, but total interest falls to about $181,758.

Add property tax at 1.2% of the price, or $400 a month, and insurance at $1,800 a year, or $150 a month. The 30-year payment then becomes about $2,572.62 before any HOA fees or mortgage insurance.

Tips and common mistakes

  • Do not budget on principal and interest alone. Include taxes, insurance, HOA fees and PMI if you put less than 20% down.
  • Look up the real tax rate for the town you are buying in. It can vary a lot between nearby areas.
  • Leave room for maintenance, utilities and repairs, which the payment does not cover.
  • Compare loan offers by APR, not only the rate, since fees differ.
  • Check whether a quoted rate includes discount points. Points lower the rate but raise your upfront cost.

Planning advice

Run several scenarios with different rates, down payments and terms to see what you can comfortably afford. Get preapproved with more than one lender to compare real offers. This calculator is for education and estimates only. It is not financial advice, so talk to a lender or a licensed financial advisor before you commit.

Frequently asked questions

How is a monthly mortgage payment calculated?
It uses the loan amount, the monthly interest rate and the number of payments in the formula above. Taxes, insurance and HOA fees are added on top.
How much down payment do I need?
Many loans accept 3 to 5 percent down, but putting 20 percent down usually avoids private mortgage insurance.
What is PMI?
Private mortgage insurance is an extra monthly cost on many loans with less than 20 percent down. This calculator does not include it.
Is a 15 year or 30 year mortgage better?
A 15 year loan has a higher monthly payment but much less total interest. A 30 year loan has a lower payment but costs more over time.
What else costs money besides the mortgage payment?
Property tax, home insurance, HOA fees, maintenance and utilities. You can add the first three above.
How much house can I afford?
A common guideline is to keep your total housing payment at or below about 28% of your gross monthly income, and all debt payments at or below about 36%. Lenders may allow more. Use the calculator to test prices and down payments, then compare the full payment with your actual budget, not just the lender limit.
Does paying extra on my mortgage save money?
Yes. Extra payments go toward principal, which lowers the balance that interest is charged on. Even small extra amounts each month can shorten the loan and cut total interest. Check that your loan has no prepayment penalty, and tell the lender to apply extra money to principal. Consider your savings and other debts first.
What is an escrow account?
An escrow account is held by your loan servicer to pay property taxes and homeowners insurance for you. Part of each monthly payment goes into it. The servicer reviews the account each year and may raise or lower your payment if taxes or insurance premiums change.