Mortgage Calculator
This mortgage calculator estimates your complete monthly housing payment — not just principal and interest, but property taxes, homeowners insurance, and HOA dues too. Enter the home price, your down payment, the loan term, and an interest rate, and you'll instantly see the payment broken into its parts along with the total interest you'd pay over the life of the loan.
Lenders and real estate listings often quote only the principal-and-interest figure, which can understate your real monthly cost by hundreds of dollars. Including escrow items up front gives you a much more honest picture of what a home actually costs each month, so you can shop within a budget you can genuinely afford.
How it works
The calculator subtracts your down payment from the home price to get the loan amount, then computes the fixed monthly principal-and-interest payment for your term and rate. Annual property tax and insurance figures are divided by 12 and added to the payment along with any monthly HOA dues. It also walks the loan month by month to total the interest you'd pay, and adds everything together — down payment, principal, interest, taxes, insurance, and HOA — for the total cost of ownership over the full term.
Formula
The monthly principal-and-interest payment is M = L × i(1 + i)n / ((1 + i)n − 1), where L is the loan amount, i is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. Your total monthly payment is then M + tax/12 + insurance/12 + HOA. At a 0% rate the payment is simply the loan amount divided by the number of months.
Worked example
Buying a $400,000 home with $80,000 down (20%) leaves a $320,000 loan. At 6.5% over 30 years, the principal-and-interest payment is about $2,022.62. Adding $4,800/year in property tax ($400/month) and $1,600/year in insurance ($133.33/month) brings the real monthly payment to roughly $2,555.95 — about 26% more than the principal-and-interest figure alone. Total interest over 30 years comes to about $408,141.
This calculator is for informational purposes only, not professional advice. Estimates exclude PMI, closing costs, and rate changes, and actual loan terms vary by lender and credit profile. Consult a qualified mortgage professional before making home-buying decisions.
Frequently asked questions
What is included in a monthly mortgage payment?
Most mortgage payments have four parts, often abbreviated PITI: principal (paying down the loan), interest (the cost of borrowing), property taxes, and homeowners insurance. Taxes and insurance are usually collected monthly into an escrow account and paid by your lender on your behalf. Some homes also carry HOA dues, which are paid separately but belong in your monthly housing budget all the same.
What is PMI and when do I have to pay it?
Private mortgage insurance (PMI) is a monthly fee most conventional lenders charge when your down payment is under 20% of the home price. It typically runs 0.3% to 1.5% of the loan amount per year and protects the lender, not you. PMI can usually be removed once you reach 20% equity in the home. This calculator does not include PMI, so budget extra if you are putting less than 20% down.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan carries a higher monthly payment but a lower interest rate and dramatically less total interest — often less than half of what a 30-year loan costs. A 30-year loan keeps payments manageable and leaves room in your budget for other goals. Many buyers take the 30-year loan for flexibility and make extra principal payments when they can, which shortens the loan without locking in the higher obligation.
How much should I put down on a house?
Twenty percent is the traditional benchmark because it avoids PMI and reduces both your loan amount and monthly payment. But many buyers put down less: conventional loans can allow 3-5% down and FHA loans 3.5%. A smaller down payment means a bigger loan, higher monthly costs, and PMI, so weigh the benefit of buying sooner against the higher carrying cost. Keep some savings in reserve for closing costs, moving, and repairs.
How much house can I afford?
A common guideline is the 28/36 rule: keep your total housing payment (including taxes and insurance) under 28% of your gross monthly income, and all debt payments combined under 36%. On an $8,000 gross monthly income, that suggests a housing payment of no more than about $2,240. Lenders may approve you for more, but the rule is a useful check on what you can carry comfortably.
Are property taxes and insurance part of my mortgage payment?
Usually, yes. Most lenders set up an escrow account and collect one-twelfth of your annual property tax and homeowners insurance with each monthly payment, then pay those bills for you when due. Escrow amounts are reviewed annually and your payment can rise if taxes or premiums go up — one reason a fixed-rate mortgage payment is not perfectly fixed in practice.