Mortgage calculator: understand what your monthly home payment could be
Buying a home is often the largest financial commitment people make, and the monthly payment is where it meets everyday life. The number a lender quotes for principal and interest is only part of it: property taxes, insurance and sometimes mortgage insurance and association dues sit on top. Seeing the whole payment, and what the loan costs over its life, can help you decide what feels comfortable before you commit.
Mortgage calculator
- Total monthly payment
- –
- Principal and interest
- –
- Loan amount
- –
- Total interest over the loan
- –
| Monthly payment breakdown | Amount |
|---|
Principal and interest use a fixed rate and monthly payments. Property tax, insurance and HOA dues are your estimates and change over time. PMI is shown for conventional loans and stops when the balance reaches 78% of the home’s original value; FHA and other loans have different mortgage insurance rules. Closing costs, maintenance and utilities are not included. Everything here runs in your browser; nothing you enter is stored or sent.
What this calculator can help you understand
- Your full monthly payment: principal and interest, plus property tax, homeowners insurance, PMI and HOA dues.
- How much you’d borrow after your down payment.
- How much interest the loan costs over its full term.
- When PMI would end, if you put down less than 20%.
- What extra principal payments could save in time and interest.
When it’s useful
- Before house hunting, to see what different prices mean for your monthly budget.
- When comparing loan offers, such as different rates or terms.
- When deciding on a down payment, to see how PMI and the payment change.
- If you already have a mortgage, to see what extra payments could do.
Who it’s for
- First-time homebuyers who want to understand the full monthly cost.
- Buyers comparing 15-year and 30-year loans.
- Homeowners considering extra payments.
It covers fixed-rate loans. Adjustable-rate mortgages change payments over time and aren’t modeled here.
What to enter
| Input | What it means | Where to find it |
|---|---|---|
| Home price | The purchase price | The listing or your offer |
| Down payment | The cash you put down; the calculator shows it as a percent of the price | Your savings plan |
| Interest rate | The loan’s annual interest rate | Your lender’s quote or Loan Estimate |
| Loan term | How long you have to repay | Your loan choice |
| Property tax per year | Annual property taxes | The listing or your county assessor |
| Home insurance per year | Annual homeowners insurance premium | An insurance quote |
| PMI rate per year | Mortgage insurance as a yearly % of the loan, if you put down under 20% | Your lender’s quote |
| HOA dues per month | Homeowners association fees, if any | The listing |
| Extra principal per month | Optional extra payment toward principal | Your budget |
How to use it
- Enter the home price and your down payment.
- Enter the interest rate and choose the term.
- Enter yearly property tax and insurance, and HOA dues if any.
- If your down payment is under 20%, check the PMI rate.
- Read the total monthly payment first, then the breakdown below it.
- Try a different down payment, term or extra payment to compare.
Understanding your results
- Total monthly payment adds principal and interest, one-twelfth of yearly tax and insurance, PMI and HOA dues.
- Principal and interest is the fixed loan payment: loan × r ÷ (1 − (1 + r)⁻ⁿ), where r is the monthly rate and n the number of months.
- Loan amount is the price minus your down payment.
- Total interest is everything you’d pay the lender beyond the loan amount over the full term.
- The chart shows the balance falling, and faster with extra payments.
What it leaves out: closing costs, maintenance and repairs, utilities, and changes in taxes and insurance over time.
A worked example
Suppose you’re buying a $400,000 home with $80,000 (20%) down, at a 6.5% rate on a 30-year fixed loan (a hypothetical rate). Property taxes are $4,800 a year and insurance $1,800 a year, with no HOA.
- Loan amount: $320,000.
- Principal and interest: $2,022.62 a month. In the first month, $1,733.33 of that is interest.
- Taxes and insurance: $400.00 + $150.00 a month.
- Total monthly payment: $2,572.62.
- Over 30 years: you’d pay $408,142 in interest. Including your down payment, principal and interest would total about $808,142, before taxes and insurance.
With 10% down instead: you’d borrow $360,000, so principal and interest rise to $2,275.44, and PMI of about $150.00 a month (0.5% a year) applies for roughly 9 years, 1 month, until the balance reaches 78% of the original value. The total payment would be about $2,975.44 while PMI lasts, and PMI would cost about $16,350 in total.
How the result changes
The $320,000 loan with different terms:
| Term | Principal and interest | Total interest |
|---|---|---|
| 15 years | $2,787.54 | $181,758 |
| 30 years | $2,022.62 | $408,142 |
The same loan at different rates:
| Rate | Principal and interest | Total interest |
|---|---|---|
| 6.0% | $1,918.56 | $370,682 |
| 6.5% | $2,022.62 | $408,142 |
| 7.0% | $2,128.97 | $446,428 |
Adding $200 a month to principal would repay the loan in 23 years, 5 months and save about $105,429 in interest.
Common mistakes
- Budgeting only for principal and interest. Taxes, insurance, PMI and dues can add hundreds of dollars a month.
- Forgetting the costs of owning. Maintenance, repairs and utilities aren’t in the payment but are part of living there.
- Assuming taxes and insurance stay the same. Both can rise, which increases an escrowed payment.
- Comparing loans by rate alone. Compare Loan Estimates, which show the APR, closing costs and the total cost over five years.
What to do with your result
- Check the total payment against your monthly budget, leaving room for savings and surprises.
- If you’re still deciding on a price range, the home affordability calculator works backward from your income and debts.
- If you’re saving for a down payment, the savings goal calculator can set a monthly target.
- When you apply, compare each lender’s Loan Estimate with these figures.
Limitations to keep in mind
The calculator estimates a fixed-rate loan with equal monthly payments. Taxes, insurance, PMI and dues are your estimates. PMI timing follows the automatic-termination rule for conventional loans and doesn’t model FHA or other programs. It isn’t a loan offer, approval or financial advice.
Frequently asked questions
What is included in a mortgage payment?
Principal and interest repay the loan. Many lenders also collect property tax and homeowners insurance each month and hold them in an escrow account. Mortgage insurance (PMI) and homeowners association dues may apply too. Together these make up what you’ll actually pay each month.
When do I need PMI?
Conventional lenders usually require private mortgage insurance when the down payment is less than 20% of the price. Under the federal Homeowners Protection Act, it generally ends automatically when the balance is scheduled to reach 78% of the home’s original value, and you can ask to cancel it at 80% if you meet your lender’s conditions. FHA loans use their own mortgage insurance, with different rules.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher payments but costs far less interest: in our example, $2,787.54 a month and $181,758 in interest, versus $2,022.62 and $408,142 over 30 years. A 30-year loan keeps the payment lower and leaves more room in your budget. Many people choose the payment that feels sustainable, and make extra payments when they can.
Do extra payments really shorten the loan?
Yes, if your lender applies them to principal. In our example, $200 extra a month repays the loan in 23 years, 5 months and saves about $105,429 in interest. Check that your loan has no prepayment penalty.
How accurate is this estimate?
Principal and interest are exact for a fixed-rate loan with the inputs you enter. Taxes, insurance, PMI and dues are your estimates. A lender’s Loan Estimate, a standard form you receive after applying, shows its own figures for your specific loan.
Does it include closing costs?
No. Closing costs, such as lender fees, title insurance and prepaid taxes, are paid at or before closing and aren’t part of the monthly payment. Your Loan Estimate lists them.
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This calculator gives estimates for illustration, based on the figures you enter and the assumptions described on this page. It isn’t financial, tax or legal advice, an offer, or a guarantee of any outcome.