Mortgage Calculator
Estimate a fixed-rate mortgage payment, total interest, amortization, property tax, homeowners insurance, HOA fees, and the combined monthly housing cost. Change the home price, down payment, interest rate, loan term, and ownership costs to compare scenarios.
What the monthly payment includes
The calculator separates principal and interest from other housing costs. For a standard fixed-rate loan, principal and interest are based on the amount borrowed, monthly interest rate, and number of monthly payments. Your real monthly housing cost may also include:
- property taxes;
- homeowners insurance;
- mortgage insurance, when applicable;
- homeowners association fees; and
- other assessments or charges not entered here.
The Consumer Financial Protection Bureau explains that the total monthly payment is commonly higher than principal and interest because taxes, insurance, and mortgage insurance may also apply.
Fixed-rate mortgage formula
The principal-and-interest payment uses the amortizing-loan formula M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments.
For example, a 30-year loan has 360 monthly payments. The annual interest rate must be divided by 12 and converted from a percentage before it is used as r. The calculator handles those conversions automatically.
How to use the estimate
- Compare several down payments instead of looking at only one scenario.
- Add realistic local property-tax and insurance estimates.
- Review the amortization schedule to see how the balance and cumulative interest change over time.
- Compare the estimated total housing cost with your current rent and monthly income.
- Obtain an official Loan Estimate before making a borrowing decision; calculator results are planning estimates, not a lender quote.
Important limitations
This calculator assumes a fixed interest rate and regular payments. Adjustable-rate loans, balloon payments, lender fees, points, closing costs, mortgage-insurance rules, tax effects, and prepayment penalties can change the real cost. The CFPB recommends comparing the loan term, rate, payment, taxes, insurance, fees, and other offer details when shopping for a mortgage.
Related calculators
Use the house affordability calculator to test a broader budget, the mortgage payoff calculator to model extra payments, or the refinance calculator to compare a replacement loan.