Estimate your monthly house payment, including principal, interest, property tax, insurance, PMI and HOA fees, and see how much interest you will pay over the life of the loan.
How to use the mortgage calculator
- Enter the home price and your down payment in dollars.
- Add the interest rate you have been quoted and choose the loan term.
- Fill in yearly property tax and home insurance. Your county website and an insurance quote are the best sources. Add HOA fees if the home has them.
- If your down payment is under 20%, the calculator adds private mortgage insurance (PMI) using the rate you enter.
The result updates as you type. Open the yearly schedule underneath to see how each year's payments split between principal and interest.
What is included in a mortgage payment?
Lenders often describe the monthly payment as PITI:
- Principal: the part that pays down the amount you borrowed.
- Interest: the lender's charge for the loan.
- Taxes: property tax, usually collected monthly and held in an escrow account.
- Insurance: homeowners insurance, also often paid through escrow.
On top of PITI you may pay PMI if you put down less than 20%, and HOA fees for condos and some neighborhoods.
The mortgage payment formula
The principal and interest part of the payment uses the standard amortization formula:
M = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Here P is the loan amount, r is the monthly interest rate (the annual rate divided by 12) and n is the number of monthly payments. Because the payment stays the same while the balance falls, early payments are mostly interest and later payments are mostly principal.
Worked example
A $350,000 home with $70,000 down (20%) leaves a $280,000 loan. At 6.5% for 30 years:
| Part of the payment | Monthly |
|---|---|
| Principal and interest | $1,769.79 |
| Property tax ($4,200 a year) | $350.00 |
| Home insurance ($1,500 a year) | $125.00 |
| Total monthly payment | $2,244.79 |
Over 30 years you would pay about $357,125 in interest, more than the original loan. In the first month, $1,516.67 of the payment is interest and only $253.12 reduces the balance.
The same loan over 15 years at 6.0% costs $2,362.80 a month in principal and interest, about $593 more, but total interest drops to roughly $145,304, saving over $211,000.
Ways to lower your mortgage payment
- Put more down. A smaller loan means a smaller payment, and reaching 20% avoids PMI.
- Improve your rate. A higher credit score and a lower debt-to-income ratio can qualify you for better rates. Compare quotes from several lenders.
- Choose the term carefully. A 30-year term lowers the monthly payment; a 15-year term saves a large amount of interest.
- Shop insurance and check your tax assessment. These costs are part of your payment too.
Frequently asked questions
How much house can I afford?
A common guideline is to keep total housing costs under about 28% of your gross monthly income. Use the mortgage affordability calculator to estimate a price range from your income and debts.
Does this calculator include closing costs?
No. Closing costs are paid upfront, usually 2% to 5% of the loan amount. Estimate them with the closing cost calculator.
What is PMI and when does it go away?
Private mortgage insurance protects the lender when your down payment is below 20%. On most conventional loans you can ask to remove it once you reach 20% equity, and it typically ends automatically at 22%. See the PMI calculator for details.
Why is my lender's estimate different?
Lenders use exact tax and insurance figures, may include escrow cushions and fees, and price PMI by credit score. Treat this result as a planning estimate and rely on your official Loan Estimate.
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Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.