Mortgage Calculator
Work out your monthly mortgage payment, how much interest you will pay over the loan, and the real monthly cost including property tax and insurance.
How to calculate your mortgage payment
- Enter the home price and your down payment, either as an amount or a percentage.
- Add the interest rate (APR) and the loan term in years.
- Optionally add yearly property tax and home insurance to see the full monthly cost, then review the year-by-year breakdown.
Features
Full monthly cost
Principal, interest, property tax and insurance in one number.
Yearly breakdown
See how much of each year goes to principal and interest.
Total interest
Know the true cost of the loan over its lifetime.
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How a mortgage payment is calculated
For a standard fixed-rate mortgage, the monthly principal and interest payment is calculated with the formula M = P × r × (1 + r)n ÷ ((1 + r)n − 1). Here P is the loan amount (home price minus down payment), r is the monthly interest rate (the yearly rate divided by 12) and n is the number of monthly payments. A 30-year loan has 360 payments, a 15-year loan has 180.
Early in the loan, most of each payment is interest. As the balance falls, the interest part shrinks and more goes to principal, which is why the yearly table shows principal growing and interest shrinking. Choosing a shorter term raises the monthly payment but cuts the total interest dramatically, and a larger down payment lowers both the payment and the interest.
Your real monthly housing cost is usually higher than principal and interest alone. Property tax and homeowners insurance are often added to the monthly payment through an escrow account, so this calculator lets you include them. It does not include private mortgage insurance (PMI, common when you put down less than 20 percent), HOA fees or closing costs, so ask your lender for an exact quote.
Frequently asked questions
How is a monthly mortgage payment calculated?
M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate and n is the number of payments. Property tax and insurance are added on top.
How much down payment do I need?
Many loans accept 3 to 5 percent, but 20 percent usually avoids private mortgage insurance and lowers your payment. Try different amounts and watch the monthly payment and total interest change.
Does this include PMI or HOA fees?
No. It covers principal, interest, property tax and home insurance. Add PMI and HOA fees to the result yourself for a full picture.
Should I choose a 15-year or 30-year term?
A 15-year loan costs more each month but saves a large amount of interest and builds equity faster. A 30-year loan has a lower payment. Compare both here to see the trade-off.
Is this an official loan offer?
No. It is an estimate for planning. Your lender’s figures may differ because of fees, rate type, rounding and local taxes.