What is a mortgage calculator?
A mortgage calculator is an online tool that estimates monthly mortgage payments and the total cost of a home loan based on the home price, down payment, interest rate, and loan term.
Mortgage Calculator
Estimate the full monthly cost of a home loan, including principal, interest, property tax, insurance, and HOA fees.
Enter your home loan details
Use your expected purchase price, down payment, loan rate, and recurring housing costs.
About this calculator
How to use Mortgage Calculator, plus the formulas and logic behind the results.
Tool description
The Mortgage Calculator estimates monthly home-loan costs from price, down payment, rate, and term, and can include taxes, insurance, and related housing expenses when entered.
How to use
- Enter the home price, down payment, interest rate, and loan term.
- Add property tax, insurance, PMI, or HOA amounts if you want a fuller monthly estimate.
- Select Calculate to view principal & interest and total monthly costs.
- Adjust the down payment or term to see how the payment changes.
Formulas & reference
Loan principal = home price − down paymentPrincipal & interest uses the standard amortization payment formulaTotal monthly payment = P&I + taxes/insurance/PMI/HOA as entered
What the payment includes
- Principal and interest
- Property tax estimate
- Home insurance estimate
- Monthly HOA fees
Calculation logic
The financed amount is amortized monthly. Optional housing costs are added to the payment total. Actual lender quotes may differ due to fees, credit, and escrow rules.
The estimate excludes closing costs, mortgage insurance, maintenance, and changes in taxes or insurance.
Mortgage Calculator FAQ
Common questions about the calculation and how to interpret the estimate.
How do you calculate a mortgage payment?
A typical mortgage payment is calculated using the loan principal, interest rate, and repayment term. Depending on the calculation, property taxes, homeowners insurance, and other costs may also be included.
What information do I need for a mortgage calculator?
You typically need the home price, down payment, mortgage interest rate, and loan term. Some calculators also allow you to enter property taxes, homeowners insurance, HOA fees, and other expenses.
How does a down payment affect a mortgage?
A larger down payment reduces the amount you need to borrow. This can lower your monthly principal and interest payment and may also reduce the total interest paid over the life of the mortgage.
How does the mortgage interest rate affect monthly payments?
A higher mortgage interest rate generally increases the monthly payment and total interest cost. A lower rate can reduce the cost of borrowing.
What is the difference between principal and interest on a mortgage?
Principal is the amount borrowed to purchase the home, while interest is the cost charged by the lender. Early mortgage payments often contain a larger share of interest, while more of the payment goes toward principal as the loan matures.
What is included in a monthly mortgage payment?
A mortgage payment may include principal and interest, and homeowners may also pay property taxes, homeowners insurance, mortgage insurance, or HOA fees. The exact components depend on the loan and property.
How does the mortgage term affect the total cost?
A longer mortgage term usually produces lower monthly payments but can result in significantly more interest paid over the life of the loan. A shorter term generally costs less in total interest but has higher monthly payments.
Can a mortgage calculator include property taxes and insurance?
Many mortgage calculators allow you to add estimated property taxes and homeowners insurance. Including these costs can provide a more realistic estimate of your total monthly housing expense.
What is PMI on a mortgage?
PMI, or private mortgage insurance, is insurance that may be required for certain conventional mortgages when the borrower's down payment is below a specified level. It adds to the overall cost of the mortgage.
How much house can I afford?
Home affordability depends on income, debts, down payment, interest rate, loan term, taxes, insurance, and other expenses. A mortgage affordability calculator can provide an estimate, but lender qualification requirements may differ.
Is a mortgage calculator accurate?
A mortgage calculator provides an estimate rather than a guaranteed loan offer. Actual payments can vary based on the lender's terms, taxes, insurance, fees, interest rate, and other factors.