🏠 Mortgage Calculator

Use this mortgage calculator to estimate your monthly home payment, including principal, interest, property taxes, homeowners insurance, and HOA dues. Adjust the down payment, interest rate, term, and extra principal payments to compare scenarios and see how much home you can comfortably afford.

Mortgage payment results

Enter your home price, down payment, interest rate, and term above, then select Calculate Mortgage Payment to see your estimated monthly payment, total interest, and payoff timeline.

Mortgage amortization schedule (P&I only)

Once you calculate your mortgage payment, a month-by-month amortization schedule will appear here.

Mortgage calculator inputs and key terms

Understanding each input will help you estimate your mortgage payment more accurately and compare different home-buying scenarios.

• Home price: The purchase price of the property before your down payment and closing costs.
• Down payment: The amount of cash you pay upfront to reduce the loan amount. Many buyers aim for 20% of the home price to avoid private mortgage insurance (PMI), but lower down payments are common, especially with FHA, VA, or other specialized loans.
• Loan amount (principal): The portion of the home price you’re financing with the mortgage. In this calculator, it is the home price minus your down payment.
• Annual interest rate (APR, %): The yearly cost of borrowing, including the base interest rate and many lender fees, expressed as a percentage. APR is useful for comparing offers from different lenders.
• Loan term (years): How long you’ll take to repay the loan. Common terms are 15, 20, and 30 years. Shorter terms usually mean higher monthly payments but much less total interest.
• Property taxes (annual): An estimate of yearly local property taxes on the home. The calculator converts this to a monthly amount to show your full housing cost.
• Homeowners insurance (annual): The annual cost of insuring the property. Many lenders collect this as part of your monthly payment through an escrow account.
• HOA dues (monthly): Monthly fees paid to a homeowners association for shared amenities, maintenance, or neighborhood services, if applicable.
• Extra principal payment (monthly): Any additional amount you plan to apply directly to the principal on top of your required payment. Extra principal can dramatically reduce your payoff time and total interest paid.

Formulas used in the mortgage calculator

This calculator uses standard amortization formulas for fixed-rate mortgages. These are the same types of equations used by lenders and financial professionals.

Monthly principal & interest payment

Let:
P = loan principal (home price − down payment)
r = monthly interest rate = APR / 12 / 100
n = total number of monthly payments (years × 12)

When r > 0:
Monthly P&I = P × [ r / ( 1 − (1 + r)−n ) ]

When the interest rate is 0%:
Monthly P&I = P ÷ n

Monthly tax, insurance, and HOA estimates

Monthly Property Tax = Annual Property Tax ÷ 12
Monthly Insurance = Annual Homeowners Insurance ÷ 12
Monthly HOA Dues = HOA Amount (already monthly)

Total Estimated Monthly Housing Payment:
Total Monthly = Monthly P&I + Monthly Tax + Monthly Insurance + Monthly HOA

Total interest and payoff time

Total P&I Paid = Monthly P&I × n
Total Interest = Total P&I Paid − P

Extra principal payments

When you add extra principal, the calculator simulates the loan month by month. Each period it:

• Calculates interest on the remaining balance.
• Applies your regular payment plus extra principal.
• Reduces the balance until it reaches zero.

This yields an estimated new payoff time, total interest with extra payments, and the interest savings compared to the standard schedule.

Mortgage Calculator FAQs

• How much house can I afford?
  A common rule of thumb is to keep your total housing payment (mortgage principal and interest, property taxes, insurance, and HOA) at or below 25–30% of your gross monthly income. Use this calculator to test different home prices and down payments until the monthly payment fits comfortably within your budget.
• What’s the difference between interest rate and APR on a mortgage?
  The interest rate is the base cost of borrowing. APR (annual percentage rate) includes the interest rate plus many lender fees, expressed as a yearly percentage. Comparing APRs can give you a better apples-to-apples view of different mortgage offers.
• Should I choose a 15-year or 30-year mortgage?
  A 15-year mortgage typically comes with a lower interest rate and much less total interest paid, but your monthly payment will be higher. A 30-year mortgage lowers the payment and can make it easier to qualify, but you pay more interest over time. Use this calculator to compare both terms for the same home price and see which fits your goals.
• Do I need a 20% down payment to buy a house?
  A 20% down payment helps you avoid private mortgage insurance (PMI) and lowers your monthly payment, but it’s not always required. Many loans allow much smaller down payments, especially FHA, VA, and USDA programs. The tradeoff is usually a higher monthly payment and higher total interest or insurance costs.
• How do extra principal payments affect my mortgage?
  Extra principal payments reduce your balance faster, which shortens your payoff time and lowers total interest paid. Even a small extra amount each month can save thousands of dollars over the life of the loan. Check your lender’s rules to confirm how extra payments are applied and whether there are any prepayment penalties.
• Are taxes and insurance always included in my mortgage payment?
  Many lenders collect property taxes and homeowners insurance through an escrow account, which means they’re bundled into your monthly payment. In other cases, you may pay them separately. This calculator lets you include estimates so you can see your full monthly housing cost either way.