Mortgage Calculator

Estimate your monthly mortgage payment, including principal, interest, taxes, insurance and PMI.

Rates as of Q2 2025 (example)

$
$
years
1 30
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0.1 20
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$
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0 2
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$
Result
Total interest
Total cost of loan

Payment breakdown

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Amortization schedule

Period Date Payment Principal Interest Balance

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For educational purposes only. Consult a financial advisor.

What is a Mortgage Calculator?

A mortgage calculator helps you estimate your monthly home loan payment before you commit to buying a property. Enter the home price, your down payment, the loan term, and an interest rate to get an instant breakdown of what you'd pay each month — including principal and interest, plus optional extras like property tax, home insurance, and HOA fees. It's a quick way to compare "what if" scenarios, such as a bigger down payment or a shorter loan term, without contacting a lender.

How to Use This Mortgage Calculator

  1. Enter the home price you're considering, then your planned down payment.
  2. Choose your loan term (commonly 30 years or 15 years) and enter an interest rate — use a quote from a lender, since the default value is an example only.
  3. Add your estimated annual property tax and home insurance, plus any HOA fees and a PMI rate if your down payment is below 20%.
  4. Review the monthly payment breakdown and amortization schedule, then try adding an extra monthly payment to see how much faster you could pay off the loan and how much interest you'd save.

How is the Monthly Mortgage Payment Calculated?

The principal and interest portion of your payment is calculated using the standard amortization formula:

Formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (loan term in years × 12).

Example: For a $400,000 home with an $80,000 down payment (a $320,000 loan), a 30-year term, and a 7.25% interest rate (example rate — enter your actual rate), the principal and interest portion comes to roughly $2,182 per month. Property tax, home insurance, PMI, and HOA fees are added on top to give your total estimated monthly payment. (Note: all figures in this example are for illustration purposes only and do not represent actual rates or market conditions.)

Mortgages in the United States

US mortgages are typically 30-year or 15-year fixed-rate loans, though adjustable-rate mortgages (ARMs) are also available. If your down payment is below 20% of the home price, lenders usually require Private Mortgage Insurance (PMI), which adds to your monthly cost until you build enough equity. Most lenders also collect property tax and home insurance through an escrow account, folding them into your monthly payment. Mortgage rates are influenced by the Federal Reserve's policy rate (example rate used in this calculator — actual rates vary by lender, credit score, and market conditions).

Tips for Using This Mortgage Calculator

  • Shop around — get quotes from multiple lenders, since even a small difference in interest rate (example only) can add up to thousands of dollars over 30 years.
  • A larger down payment reduces your loan amount and can help you avoid PMI altogether.
  • Making extra monthly payments toward principal can shorten your loan term and significantly cut total interest paid.
  • Don't forget property tax, home insurance, and HOA fees — they're part of your real monthly cost, not just principal and interest.
  • Check your credit score before applying, since it directly affects the interest rate lenders offer you.

Frequently Asked Questions

What is a good mortgage interest rate?

Mortgage rates change daily and depend on your credit score, loan term, down payment, and overall market conditions. The rate shown by default in this calculator is an example only — always get a personalized quote from a lender to see the rate you'd actually qualify for.

How much down payment do I need for a mortgage?

There's no single fixed minimum — some loan programs allow as little as 3-3.5% down, while a 20% down payment helps you avoid PMI. A larger down payment also means a smaller loan amount and lower monthly payments.

What is PMI and when can I stop paying it?

Private Mortgage Insurance (PMI) protects the lender if you default on a loan with less than 20% down. Once your loan balance drops to around 80% of the home's original value, you can typically request to have PMI removed.

How do extra payments affect my mortgage?

Extra payments go directly toward your principal balance, which reduces the amount of interest that accrues over time. Even a modest extra payment each month can shave years off a 30-year mortgage and save a substantial amount in interest.

Does this calculator include property tax and home insurance?

Yes — you can enter your estimated annual property tax and home insurance, along with HOA fees and a PMI rate, and the calculator adds them to your principal and interest to show your total estimated monthly payment.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage usually has a lower interest rate and builds equity faster but comes with higher monthly payments. A 30-year mortgage spreads payments out for lower monthly costs but more total interest paid. Try both loan terms in this calculator to compare the difference.

Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect current or actual market rates. Financial rules and regulations change frequently. Always consult a qualified financial advisor, tax professional, or lender before making any financial decisions.