Mortgage Calculator

MONEY & FINANCE

Home price

Down payment (amount)

Annual interest rate (%)

Loan term (years)

Property tax per year (optional)

Home insurance per year (optional)

HOA fees per month (optional)

Extra payment per month (optional)

—

Enter the home price, rate and term to see your monthly payment

What your mortgage payment is made of

A mortgage payment has up to four parts. The core is principal and interest: the money that repays what you borrowed and the interest the lender charges for lending it. On top of that, many homeowners pay property tax and homeowners insurance each month, often collected by the lender into an escrow account, and some also pay a monthly HOA fee. The first two fields cover the loan itself, and the optional fields let you add the rest so the total reflects what you will actually pay each month.

The principal-and-interest part uses the standard fixed-rate formula: payment = L × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1). L is the loan amount (home price minus down payment), r is the monthly rate (the annual rate divided by 12, then by 100) and n is the number of monthly payments (years × 12). Property tax and insurance are entered per year and divided by 12 before they are added; HOA is already monthly.

A worked example

Take a 300,000 home with 60,000 down (20%). The loan is 240,000. At 6.5% over 30 years the principal-and-interest payment is about 1,516.96 a month. Over 360 payments you would pay roughly 546,107, of which about 306,107 is interest. If property tax is 3,600 a year and insurance is 1,200 a year, that adds 400 a month, so the full monthly payment is about 1,916.96.

In the early years most of each payment is interest. In month one, interest is 0.54167% of 240,000, which is 1,300, so only about 216.96 goes toward the balance. Because the balance falls slowly at first, the chart on this page shows interest taking the biggest share of the first years and principal taking over later.

How term, rate and down payment change the cost

Using the same 240,000 loan at 6.5%, a 15-year term raises the payment to about 2,090.66 a month but cuts total interest to about 136,318, compared with about 306,107 over 30 years. A lower rate matters too: at 6.0% instead of 6.5% on the 30-year loan, the payment drops by about 78 a month and total interest falls by about 28,000.

A bigger down payment works in your favour twice. It reduces the amount you borrow and, with it, the interest. With only 30,000 down (10%) on the same home, the loan becomes 270,000 and the payment rises to about 1,706.58, roughly 190 more each month. Some lenders also require private mortgage insurance when the down payment is below 20%; that cost is not included here, so add it to the insurance field if it applies to you.

What extra payments can do

Every extra amount you add goes straight to principal, which lowers the balance that interest is charged on. On the example loan, paying an extra 200 a month clears the mortgage in 262 months (21 years and 10 months) instead of 360, which is about 8 years earlier, and saves roughly 96,270 in interest. The chart and table show the schedule with your extra payment included. Check with your lender that extra payments are applied to principal and that there is no prepayment penalty.

What this calculator does not include

This is a fixed-rate estimate. It does not model adjustable rates, points, closing costs, private mortgage insurance, or changes in tax and insurance over time. Lenders may also round or schedule payments slightly differently. Use the result for planning and comparison, and rely on your lender’s official loan estimate before you commit. This page is for general information and is not financial advice.

COMMON QUESTIONS

How is a monthly mortgage payment calculated?

The loan amount (price minus down payment) is spread over the term using a fixed monthly rate, which gives the principal-and-interest payment. Property tax and insurance (divided by 12) and any HOA fee are then added to give the total monthly cost.

How much down payment do I need?

It depends on the loan type and lender. Twenty percent is a common benchmark because it usually avoids private mortgage insurance, but many loans accept less. Try different down payment amounts here to see how the payment and total interest change.

Why is my lender’s figure higher than this result?

Lenders often include private mortgage insurance, escrow for taxes and insurance, and fees. Enter your yearly property tax and insurance in the optional fields, and add any mortgage insurance to the insurance amount, to get closer to the lender’s number.

Is a 15-year or 30-year mortgage better?

A 15-year loan has a higher monthly payment but far less total interest. A 30-year loan is easier on the monthly budget but costs more over time. The right choice depends on your budget and goals, so compare both here.

How do extra payments shorten a mortgage?

Extra money paid toward principal reduces the balance immediately, so less interest accrues every month afterwards. Even a modest regular extra amount can remove years from the term. Confirm with your lender that extra payments go to principal.

What if the interest rate is 0%?

With no interest, the principal-and-interest payment is simply the loan amount divided by the number of months. The calculator handles this case automatically.

What happens if my down payment is as large as the home price?

Then there is nothing to borrow and no mortgage payment. The calculator tells you so instead of showing a payment. Property tax, insurance and HOA would still apply to the home.