Estimate the monthly cost of a fixed-rate home loan from the home price, down payment, annual interest rate and term. You can add property tax, insurance, PMI, HOA fees and an optional monthly extra payment. Compare the principal-and-interest amount separately from the wider housing budget.
Mortgage Calculator
Estimate your monthly mortgage payment including taxes, insurance, PMI and HOA — and see your full amortization schedule. Add extra payments to see how much faster you could pay off your home.
Amortization schedule
⚠ Estimate only. Property tax, insurance and PMI vary by location and lender; PMI is assumed to drop once the loan balance falls below 80% of the home price. Confirm exact figures with your lender. Not financial advice.
Enter your mortgage assumptions
- Enter the Home price and Down payment in the same currency. Their difference is the amount borrowed.
- Enter the annual contractual Interest rate, then the loan term and its Years or Months unit.
- For a wider budget, add property tax and home insurance as annual amounts. Enter HOA fees and any extra payment as monthly amounts.
- If applicable, enter PMI as an annual percentage of the initial loan. Confirm the actual premium and cancellation terms with your lender.
- Select Calculate. Review the payment breakdown, total loan interest, payoff time and monthly or yearly repayment schedule.
The currency menu changes presentation; it does not convert amounts or select a country’s lending rules. The model uses a constant rate with monthly periods. It does not simulate adjustable-rate resets, daily interest, a balloon balance or a country-specific compounding convention.
Principal and interest versus the housing budget
Principal pays down the loan; interest is the charge for borrowing. Taxes, insurance and other housing costs are separate. The CFPB home-loan toolkit distinguishes these costs when building a monthly budget.
This calculator adds the tax, insurance, PMI and HOA amounts you enter to the loan payment. A monthly extra payment is included in its displayed monthly total too. The loan-interest total and repayment schedule do not represent every cost of owning the home. Budget separately for closing costs, repairs, maintenance, utilities and charges that are not entered.
How the payment is calculated
M = P × r × (1 + r)n / ((1 + r)n − 1), where P is home price minus down payment, r is annual interest percent divided by 1,200, and n is the number of monthly payments. At zero interest, M = P / n.
For example, a home price of $375,000 and a $75,000 down payment leave a $300,000 loan. At an illustrative 6.5% annual rate over 30 years, the monthly principal-and-interest payment is $1,896.20. The calculation divides 6.5% by 12 and uses 360 end-of-month payments.
| Term | Monthly principal and interest | Total loan interest |
|---|---|---|
| 30 years | $1,896.20 | $382,633.47 |
| 15 years | $2,613.32 | $170,397.98 |
Add $3,600 annual property tax, $1,200 annual home insurance and $50 monthly HOA fees to the 30-year example, with PMI and extra payments set to zero: the estimated monthly budget becomes $2,346.20. These are invented example inputs, not current market rates or a mortgage offer. Totals use unrounded payments; lender rounding can change the final installment.
Down payment, PMI and extra principal
A larger down payment reduces the borrowed amount. In this model, the same rate and term then produce a smaller loan payment and less total interest. Whether it changes your offered rate or insurance requirement depends on the actual loan.
PMI is simplified here: the model calculates the premium from the initial loan and stops including it when the modeled balance is at or below 80% of the entered home price. That is not an automatic cancellation guarantee. For many covered US mortgages, CFPB guidance distinguishes requesting cancellation at 80% from automatic termination at the scheduled 78% threshold, with conditions and exceptions. FHA, VA, lender-paid insurance and other jurisdictions can follow different rules.
The extra-payment field models an additional principal payment each month while keeping the scheduled principal-and-interest amount. That can shorten the modeled payoff time. Check that your lender will apply the money to principal and whether any early-repayment charge applies.
Common questions
Should I enter the interest rate or APR?
Enter the contractual annual interest rate. APR includes additional borrowing costs and is useful for comparing offers, but it is not the monthly-interest input used by this formula.
Is a 30-year mortgage always cheaper?
No. With the same balance and rate, the longer term lowers the scheduled payment but increases interest across the full term, as the table shows. Affordability also depends on income, other obligations and costs outside the loan.
Does this show whether I qualify?
No. It estimates payments from your inputs and does not assess credit, verify income or approve borrowing. Compare it with the lender’s actual payment and fee disclosures. The mortgage calculation guide explains the arithmetic, while the EMI calculator provides a simpler loan-only view.