Mortgage Calculator
Estimate monthly mortgage payments, total interest, payoff date, home ownership costs, and an amortization schedule.
Mortgage Calculator
This mortgage calculator is for educational estimates only. It does not include closing costs, lender fees, adjustable-rate changes, local tax rules, or financial advice.
How it works
Formula and steps
The formula shows how the mortgage calculator turns your inputs into the result. Use it to check the calculation, then follow the example steps to see each part of the math.
Formula & steps
Principal and interest formula
Use this to estimate the mortgage principal-and-interest payment.
M= Monthly principal-and-interest paymentP= Loan principalr= Monthly interest rate as a decimaln= Total number of monthly paymentsDetailed monthly total formula
Use this when detailed mortgage costs are included.
T= Total estimated monthly housing paymentM= Monthly principal-and-interest paymentPMI= Private mortgage insuranceHOA= Homeowners association dues- 1Subtract the down payment from the home price to find the loan amount.
- 2Divide the annual interest rate by 12 to get the monthly interest rate.
- 3Use the fixed-rate mortgage payment formula to calculate monthly principal and interest.
- 4Build the amortization schedule by applying monthly interest first, then principal.
- 5In detailed mode, add taxes, insurance, PMI, HOA, and other recurring costs to estimate total monthly cost.
Worked examples
A $400,000 home with $80,000 down, a 30-year term, and 6.69% interest has a monthly principal-and-interest payment of about $2,062.77.
Detailed mode can add property tax, insurance, PMI, HOA, and other costs to estimate the full monthly housing payment.
Common uses
- Monthly mortgage payment
- Home loan planning
- Amortization schedule
- Taxes and insurance estimate
Common mistakes
- Comparing only principal and interest when taxes, insurance, PMI, HOA, and maintenance may also affect the monthly budget.
- Treating a fixed-rate mortgage estimate as an adjustable-rate mortgage quote.
- Forgetting that closing costs and lender fees are not included in the regular monthly payment formula.
Mortgage guide
How mortgage payments are calculated
A fixed-rate mortgage payment is based on the loan amount, monthly interest rate, and number of monthly payments. Each payment covers that month's interest first, then the rest reduces principal.
The principal-and-interest payment stays level, but the mix changes over time. Early payments usually contain more interest, while later payments put more money toward the remaining balance.
Principal, interest, and total monthly cost
Simple mode calculates the mortgage payment itself: principal and interest. Detailed mode adds recurring ownership costs, including property taxes, home insurance, PMI, HOA dues, and other monthly costs, so the total payment estimate is closer to the amount a homeowner may actually plan for each month.
Mortgage amortization example
For a $400,000 home with $80,000 down, 30 years, and a 6.69% fixed rate, the monthly principal-and-interest payment is about $2,062.77 before taxes and insurance. Over time, interest becomes a smaller part of each payment and principal becomes a larger part.
What the mortgage chart shows
The chart summarizes yearly principal and interest. Early years usually show more interest, while later years show more principal. The final year is the payoff year shown by the calculator.
Mortgage costs in detailed mode
Detailed mode adds common home ownership costs to the monthly mortgage estimate. These defaults are planning assumptions only, because property tax rates, insurance premiums, PMI, HOA dues, and maintenance costs can vary by location, lender, home type, and borrower profile.
Property tax
Property tax is a local tax usually based on the assessed value of the home. The calculator uses 1.2% per year as a broad default because many buyers think about property tax as a percentage of home value, but the real rate depends on the city, county, exemptions, and assessment rules.
Home insurance
Home insurance is the premium paid to insure the property against covered losses. The $1,500 annual default is a simple estimate for monthly mortgage planning, but actual premiums depend on coverage, deductible, location, replacement cost, claims history, and insurer pricing.
PMI
PMI, or private mortgage insurance, may apply when the down payment is below 20% on a conventional loan. The 0.5% per year default is a rough planning number based on the loan amount. Your lender may quote a higher or lower PMI cost, and PMI may later be removed under certain loan-to-value rules.
HOA dues
HOA dues are homeowners association fees used by some condos, townhomes, and planned communities. The calculator defaults HOA to $0 per month because many homes do not have an HOA. If a property has one, use the monthly or annual dues from the listing or association documents.
Other monthly ownership costs
Other costs can include maintenance reserves, utilities, special assessments, flood insurance, or recurring home expenses not listed elsewhere. The $200 monthly default is a modest buffer to keep the total monthly home payment estimate closer to real ownership costs than principal and interest alone.
FAQ
It estimates monthly principal and interest from the loan amount, interest rate, and loan term. Detailed mode can also add recurring ownership costs such as taxes, insurance, PMI, HOA, and other costs.
Simple mode shows principal and interest only. Detailed mode adds taxes, insurance, PMI, HOA, and other recurring costs to estimate a broader monthly housing cost.
An amortization schedule shows how each monthly payment is split between interest and principal, and how the remaining loan balance falls over time.
No. It calculates fixed-rate mortgages only, where the interest rate and principal-and-interest payment stay the same for the full loan term.
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