A mortgage calculator helps you estimate how much you may pay each month when buying a home. Enter the home price, down payment, mortgage interest rate, loan term, property taxes, homeowners insurance and other costs to get an estimated monthly payment.

You can also use the calculator to see how changing your down payment, interest rate or loan term can affect your monthly housing costs and the total interest you may pay over the life of the loan.

Use the mortgage calculator below to estimate your payment.

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Your result is an estimate rather than a mortgage quote. Your actual payment can vary depending on your lender, credit profile, interest rate, property taxes, insurance costs, PMI, HOA fees and other expenses associated with the property.

How does a mortgage calculator work?

A mortgage calculator estimates the cost of financing a home based on the information you provide.

The most important inputs are:

• Home price
• Down payment
• Loan amount
• Interest rate
• Loan term
• Property taxes
• Homeowners insurance
• Private mortgage insurance
• HOA fees
• Extra monthly principal payments

The calculator first determines how much money you need to borrow.

For example, if a home costs $400,000 and you make an $80,000 down payment, your estimated mortgage principal would be:

$400,000 − $80,000 = $320,000

The calculator then uses the loan amount, mortgage rate and repayment term to estimate your monthly principal and interest payment.

Taxes, insurance, PMI and HOA costs can then be added to provide a more realistic estimate of your total monthly housing payment.

What is included in a monthly mortgage payment?

A mortgage payment can include considerably more than the amount going toward the home loan itself.

Understanding each component can help you create a more accurate home-buying budget.

Principal

Principal is the amount of money you borrowed to purchase the property.

If you borrow $320,000, your starting mortgage principal is $320,000.

Every time you make a regular mortgage payment, part of the payment generally reduces your outstanding principal balance.

Interest

Interest is what the lender charges for lending you money.

Your interest rate can have a major impact on both your monthly payment and the total cost of your mortgage.

Even a relatively small difference in mortgage rates can change the amount of interest paid over a 15-, 20- or 30-year loan.

This is why it can be useful to test several interest rates in the calculator before deciding how much home you are comfortable buying.

Property taxes

Property taxes are normally assessed by local governments and vary by location and property value.

If you know your estimated annual property tax, enter it into the calculator.

The tool divides the annual amount into a monthly estimate so it can be included in your total housing cost.

Homeowners insurance

Homeowners insurance helps protect the property against certain covered losses.

Insurance costs can vary according to the home's location, value, construction, coverage limits and other factors.

Entering an estimated annual premium gives you a more realistic monthly mortgage budget.

Private mortgage insurance

Private mortgage insurance, commonly called PMI, may be required on some conventional mortgages when the buyer makes a relatively small down payment.

PMI protects the lender rather than the borrower.

The cost varies, so the PMI result shown by a mortgage calculator should be considered an estimate.

One reason buyers compare different down payments is that putting more money down can reduce the loan-to-value ratio and may reduce or eliminate the need for PMI depending on the loan.

HOA fees

If the property belongs to a homeowners association, you may also have monthly, quarterly or annual HOA fees.

These fees are separate from the mortgage itself but should still be considered when estimating the true monthly cost of owning the property.

Our calculator lets you include the monthly HOA amount in your estimate.

How to use this mortgage calculator

Using the calculator only takes a few seconds.

1. Enter the home price

Enter the purchase price of the property you're considering.

For example:

Home price: $400,000

This is the starting point for the calculation.

2. Enter your down payment

Enter how much money you plan to pay upfront.

You can compare different scenarios, such as:

• 5% down
• 10% down
• 15% down
• 20% down

A larger down payment generally means borrowing less money.

That can lower the monthly principal and interest payment and reduce the total amount of interest paid.

However, the right down payment depends on your finances and the mortgage program you use.

3. Enter the mortgage interest rate

Enter the annual interest rate you expect to receive.

Try several rates rather than relying on a single estimate.

For example, comparing different rate scenarios can show how sensitive your monthly payment is to changes in borrowing costs.

4. Select the loan term

Common mortgage terms include:

• 15 years
• 20 years
• 30 years

A longer mortgage term typically produces a lower required monthly principal and interest payment because the debt is spread over more payments.

However, keeping a mortgage for longer can also result in paying more total interest.

A shorter loan usually has a higher monthly payment but can reduce the amount of interest paid over the full loan term.

5. Add property taxes and insurance

Adding these expenses makes the estimate much more useful.

A calculator showing only principal and interest can make homeownership appear less expensive than the amount you may actually need to budget every month.

6. Add PMI and HOA costs if applicable

If the property could have mortgage insurance or homeowners association fees, include them as well.

The goal is to estimate your total monthly housing cost, not simply the loan payment.

Mortgage payment formula

For a standard fixed-rate mortgage, principal and interest can be estimated using an amortization formula.

The basic calculation considers:

P = Loan principal

r = Monthly interest rate

n = Total number of monthly payments

The monthly principal and interest payment is calculated from these variables so the loan balance reaches approximately zero at the end of the repayment period.

Fortunately, you do not need to calculate this manually.

The mortgage calculator performs the calculation automatically whenever you change the home price, rate, down payment or term.

Mortgage calculator example

Suppose you are considering a $400,000 home.

You plan to make a:

$80,000 down payment

Your estimated mortgage would therefore be:

$320,000

You can enter the mortgage rate and choose a 30-year term to estimate your principal and interest payment.

Next, add your expected:

• Property taxes
• Homeowners insurance
• PMI
• HOA fees

The calculator will combine these amounts and display an estimated monthly payment.

Now change the down payment from $80,000 to $100,000.

You will immediately see how borrowing less money affects the monthly payment and total interest.

You can repeat the same process with different mortgage rates or repayment periods.

This makes the calculator particularly useful when comparing multiple home-buying scenarios.

How does the interest rate affect a mortgage?

The interest rate is one of the most important variables in a mortgage calculation.

A lower rate means less interest is charged on the outstanding balance.

That can reduce the required monthly principal and interest payment.

A higher rate generally increases the payment.

The difference becomes even more significant when financing hundreds of thousands of dollars over several decades.

Instead of calculating only one scenario, compare several possible rates.

For example, you could calculate the same mortgage using three different interest rates and see how the monthly payment changes.

This gives you a clearer understanding of how mortgage rates can affect your buying power.

How does the down payment affect your mortgage?

The down payment determines how much of the home's purchase price you finance.

Consider a $400,000 home.

With a $40,000 down payment, you would need to finance approximately $360,000 before considering other financed costs.

With an $80,000 down payment, the mortgage would be approximately $320,000.

Borrowing $40,000 less can significantly change the monthly payment and total interest.

A larger down payment can also reduce your loan-to-value ratio.

However, putting all available savings into a down payment is not automatically the best decision.

Homeowners may also need money for closing costs, moving expenses, repairs, emergencies and other financial obligations.

Use the calculator to compare several down-payment amounts rather than assuming one percentage is always best.

15-year vs. 30-year mortgage

One of the most common mortgage comparisons is between a 15-year and 30-year loan.

30-year mortgage

A 30-year mortgage spreads repayment across 360 scheduled monthly payments.

The longer repayment period generally lowers the required monthly principal and interest payment compared with a shorter loan using the same principal and interest rate.

The tradeoff is that interest may accumulate for a longer period.

15-year mortgage

A 15-year mortgage is normally repaid over 180 scheduled monthly payments.

Monthly payments are generally higher because the principal must be repaid much faster.

However, paying down the balance faster can substantially reduce the total interest paid over the life of the mortgage.

You can compare both options instantly by changing the loan term in the calculator.

What is an amortization schedule?

An amortization schedule shows how each mortgage payment is divided between principal and interest.

During the early stages of many fixed-rate mortgages, a larger portion of the principal-and-interest payment goes toward interest.

As the outstanding loan balance decreases, more of the payment typically goes toward principal.

An amortization table can show:

• Payment number
• Payment date
• Principal paid
• Interest paid
• Remaining mortgage balance
• Total interest over time

This can help you understand what happens to your loan balance throughout the mortgage.

Our calculator provides both monthly and yearly amortization views.

What happens if I make extra mortgage payments?

Making additional payments toward principal can reduce your outstanding balance faster.

That may help you:

• Pay off the mortgage earlier
• Reduce future interest charges
• Build home equity faster

For example, you can enter an additional monthly principal payment into the calculator and compare the new payoff date against the original mortgage schedule.

Even relatively modest extra payments can change a long-term amortization schedule.

Before making extra payments, check the terms of your mortgage and confirm how your lender applies additional payments.

How much mortgage can I afford?

A mortgage calculator can help estimate payments, but affordability involves more than qualifying for a certain loan amount.

Before choosing a home price, consider other monthly obligations such as:

• Car payments
• Credit card payments
• Student loans
• Utilities
• Food
• Transportation
• Childcare
• Health expenses
• Home maintenance
• Emergency savings
• Other recurring debts

You should also account for expenses that can change over time.

Property taxes, homeowners insurance and HOA fees may increase.

The maximum amount a lender is willing to approve and the amount you personally feel comfortable paying are not necessarily the same.

Using a calculator to compare several home prices can help establish a payment range that fits your budget.

Principal and interest vs. total monthly payment

One of the most important distinctions when using a mortgage calculator is the difference between principal and interest and your total monthly housing payment.

Principal and interest represents the mortgage itself.

Your total payment could also include:

Principal + Interest + Property Taxes + Homeowners Insurance + PMI + HOA

For example, a mortgage may have a principal-and-interest payment of $2,000 per month.

But after adding taxes, insurance and association fees, the total housing cost could be considerably higher.

For budgeting purposes, the total monthly estimate is usually more useful.

Why your actual mortgage payment may be different

No online mortgage calculator can guarantee your final payment.

Actual mortgage costs can depend on:

• Your approved interest rate
• Loan type
• Credit profile
• Mortgage insurance
• Property location
• Property taxes
• Homeowners insurance
• HOA fees
• Lender fees
• Closing costs
• Escrow requirements
• Loan conditions

Use calculator results as a planning estimate and compare them with official loan documents before making a financial decision.

Frequently Asked Questions

How much would a $300,000 mortgage cost per month?

The payment depends mainly on the mortgage interest rate and loan term.

A $300,000 mortgage at one interest rate will have a different payment than the same loan at another rate.

Enter $300,000 as the loan amount, select your expected interest rate and loan term, and the calculator will estimate the payment instantly.

How much would a $400,000 mortgage cost per month?

It depends on the interest rate, repayment term, taxes, insurance, PMI and other expenses.

Use the calculator above and enter a $400,000 loan or adjust the home price and down payment until the financed amount equals $400,000.

Does a mortgage calculator include taxes and insurance?

A basic mortgage calculator may calculate only principal and interest.

This calculator allows you to add property taxes and homeowners insurance so you can estimate a more realistic monthly housing payment.

Does the calculator include PMI?

Yes. You can enter an estimated PMI rate when applicable.

The actual cost and requirements for mortgage insurance depend on your loan and lender.

Does a mortgage calculator affect my credit score?

No.

Using an online mortgage calculator does not require a credit inquiry and does not affect your credit score.

It simply performs mathematical calculations using the information you enter.

Is a mortgage calculator accurate?

A mortgage calculator can accurately calculate payments based on the numbers entered, but the result is still an estimate.

Your final mortgage payment can differ because of lender terms, insurance premiums, taxes, mortgage insurance, fees and other costs.

Can I calculate extra mortgage payments?

Yes.

Enter an additional monthly principal payment to see how it can affect your estimated payoff date and total interest.

What mortgage term should I choose?

There is no single mortgage term that is best for everyone.

A shorter term usually means higher monthly payments but less total interest, while a longer term generally lowers the required monthly payment but may increase total borrowing costs.

Compare several terms with the calculator to see which payment better fits your finances.