Mortgage Calculator
Work out your real monthly mortgage payment, not just principal and interest. Add the home price, down payment, rate and term, then layer in property tax, home insurance, PMI and HOA to get the true out-of-pocket cost. Add an extra monthly payment to see how much sooner you pay off, or flip to budget mode to find the home price a monthly payment can afford.
Formula
Worked example
A $360,000 home with $72,000 (20%) down means a $288,000 loan. At 6.5% over 30 years that is about $1,820 per month in principal and interest. Add roughly $360 a month for property tax and $150 for insurance and the full payment is near $2,330.
How your monthly mortgage payment is calculated
A repayment mortgage uses the standard amortization formula above, where M is the monthly principal and interest payment, P is the loan amount (the price minus your down payment), r is the monthly interest rate (the annual rate divided by 12), and n is the number of monthly payments. Each month part of the payment covers interest on the outstanding balance and the rest reduces the principal, so the split shifts toward principal over time. This calculator adds the other parts of a real housing payment on top: property tax, home insurance, mortgage insurance and any HOA fee, which together are often called PITI plus HOA.
Property tax, insurance, PMI and HOA
Turn on "Include taxes & costs" to see your full payment. Property tax is usually a percent of the home value (the US average is around 1.1% per year) but can be entered as a fixed amount. Home insurance is an annual premium. PMI, private mortgage insurance, is typically charged at 0.3% to 1.5% of the loan per year while your equity is under 20%, so this calculator drops it automatically once your down payment reaches 20%. HOA or condo fees are a flat monthly charge. Each cost is divided into a monthly figure and added to your principal and interest so the headline payment reflects what actually leaves your account.
Extra payments, payoff and affordability
Adding an extra amount toward principal each month shortens the loan and cuts total interest sharply, and the calculator shows the new payoff time and overlays the faster balance on the chart. The total out-of-pocket figure sums your down payment, every principal and interest payment, and all the tax, insurance, PMI and HOA you pay over the term, so you can see the lifetime cost of the home. Switch to budget mode to reverse-solve the question from the other direction: enter the monthly principal and interest you can afford and the calculator returns the loan amount that payment supports, which you add your down payment to for a target price.
Typical mortgage cost ranges
| Cost | Typical range | Notes |
|---|---|---|
| Down payment | 3% to 20%+ | Under 20% usually triggers PMI |
| Property tax | 0.3% to 2.2% / yr | Varies widely by state and county |
| Home insurance | $1,000 to $3,000 / yr | Higher in storm and wildfire areas |
| PMI | 0.3% to 1.5% of loan / yr | Drops off at 20% equity |
| Loan term | 15, 20 or 30 years | Shorter term, less interest, higher payment |
Starting points for US borrowers; your actual numbers depend on location, lender and credit.
Frequently asked questions
What is included in the monthly mortgage payment?
The full payment shown here is principal and interest plus property tax, home insurance, PMI and any HOA fee. The first two repay the loan; the rest are housing costs lenders often collect into an escrow account. Principal and interest are also shown on their own so you can see each part.
When do I have to pay PMI?
Private mortgage insurance is normally required when your down payment is under 20% of the home price. This calculator applies PMI only in that case and removes it once your down payment reaches 20% equity. In practice lenders also let you cancel PMI as you pay the loan down past 20% equity.
How much can extra payments save me?
A lot. Because early payments are mostly interest, putting extra money toward principal each month can shave years off the term and save tens of thousands in interest. Enter an extra monthly amount and the calculator shows the new payoff time and a faster balance curve. Check your lender allows overpayments without penalty first.
How is mortgage interest calculated?
Interest each month is charged on the remaining balance at the monthly rate (annual rate divided by 12). Because the balance falls over time, the interest portion of each payment shrinks while the principal portion grows, which is why the amortization schedule is front-loaded with interest.
Can I work out the home price I can afford?
Yes. Switch the mode at the top to budget mode, enter the monthly principal and interest you are comfortable with, and the calculator reverse-solves the loan amount that payment supports at your rate and term. Add your down payment to that loan to get a target purchase price.