= 80,000.00
Optional
Optional
Optional
- Principal & interest2,022.62
- Property tax400.00
- Insurance125.00
Total cost includes the down payment, all principal and interest, and tax, insurance and HOA for the full term at today's amounts.
How to use the Mortgage Calculator
- 1Enter the home price, then your down payment as a percentage or a fixed amount using the toggle.
- 2Enter the annual interest rate and the loan term in years, or tap 15, 20 or 30 for a quick pick.
- 3Optionally add annual property tax, annual home insurance and monthly HOA fees.
- 4Read the total monthly payment and its breakdown in the colored bar, then check the loan amount, total interest and total cost.
What a monthly mortgage payment includes
Lenders often describe a mortgage payment as PITI: principal, interest, taxes and insurance. Principal and interest repay the loan itself. Property tax and homeowners insurance are often collected monthly by the lender into an escrow account. HOA dues, if the home has them, are a further monthly cost.
Budgeting on principal and interest alone can be misleading, so this calculator divides the annual tax and insurance figures by 12 and adds them, together with HOA fees, to the loan payment so you see the full amount.
How the mortgage payment is calculated
The loan amount is the home price minus the down payment. The principal and interest portion then uses the standard amortization formula: M = L × r × (1 + r)^n ÷ ((1 + r)^n − 1), where L is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. This is the same reducing-balance method explained in our guide on how loan EMI is calculated.
Total interest is the monthly principal and interest multiplied by the number of payments, minus the loan amount. Total cost adds the down payment, every principal and interest payment, and the tax, insurance and HOA costs for the whole term at the amounts you entered. Those costs usually rise over time, so treat the total as a baseline.
Example: a 400,000 home with 20% down
Say you buy a home for 400,000 and put 20% down. The down payment is 80,000, so you borrow 320,000. At 6.5% over 30 years, the principal and interest payment is about 2,022.62 a month. Adding property tax of 4,800 a year (400 a month) and insurance of 1,500 a year (125 a month) brings the total monthly payment to about 2,547.62.
Over 30 years you would pay roughly 408,142.36 in interest, more than the amount borrowed. The same loan over 15 years at the same rate costs about 2,787.54 a month in principal and interest, but total interest falls to about 181,757.84. You can compare a general loan on the same terms with our loan EMI calculator.
How to lower your mortgage costs
A larger down payment reduces the loan amount and therefore both the monthly payment and the total interest. In many markets, putting down at least 20% also avoids private mortgage insurance, an extra monthly charge this calculator does not include. On a large, long loan, even a quarter-point lower rate saves thousands.
A shorter term means higher monthly payments but far less interest overall. On a 30-year loan, occasional extra principal payments shorten the term and cut interest. To see what your income supports, our salary to hourly calculator converts pay into monthly figures you can compare with the payment.
Learn more
Frequently asked questions
Does this mortgage calculator include PMI?
No. Private mortgage insurance varies by lender, credit score and down payment, so it is not included. If your lender quotes a PMI amount, you can add the yearly figure to the home insurance field to include it in the monthly total.
Should I enter the down payment as a percentage or an amount?
Either works. Use the toggle to switch; the calculator converts the value and shows the equivalent under the field.
Why is the total interest so high on a 30-year mortgage?
Interest is charged on the outstanding balance every month, and on a long loan the balance stays high for many years. A shorter term or extra payments reduce the balance faster and so reduce total interest.
Where do I find my property tax and insurance figures?
Property tax is usually published by your local tax authority or shown on the home listing. For insurance, request a quote from an insurer. If you only know a tax rate, work out the yearly amount with our percentage calculator and enter that number.
Is the result the same as my lender's quote?
The principal and interest figure uses the standard lender formula, so it should be very close. The final payment can differ because of escrow adjustments, PMI, fees and the exact taxes and insurance on the property.