Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and loan payoff schedule.
Taxes, Insurance & PMI
Buying a home is a major financial decision. Before you choose a property or apply for a mortgage, it helps to know what your monthly payment could look like.
Our mortgage calculator helps you estimate your monthly mortgage payment using important loan details such as home price, down payment, interest rate, and loan term. You can also include costs such as property taxes, homeowners insurance, PMI, and HOA fees when these costs apply.
A mortgage calculator is useful because the price of a home is not the same as the amount you will pay each month. Interest, taxes, insurance, and other costs can change the total cost of owning a home.
Use the calculator above to test different numbers and compare possible loan options before making a decision.
What Is a Mortgage Calculator?
A mortgage calculator is an online tool that estimates how much you may need to pay for a home loan each month.
You normally enter the home price, down payment, interest rate, and loan term. The calculator then estimates the amount borrowed and the monthly principal and interest payment. More detailed calculators can also include property taxes, homeowners insurance, mortgage insurance, and HOA fees.
For example, you might use a mortgage calculator to answer questions such as:
- How much will my monthly mortgage payment be?
- How much money do I need for a down payment?
- How much interest will I pay?
- What happens if I choose a 15-year loan instead of a 30-year loan?
- How does a higher interest rate affect my payment?
- How much could I save with a larger down payment?
- When could the mortgage be fully paid off?
The calculator gives you a quick estimate so you can understand the numbers before speaking with a lender.
Important: A mortgage calculator provides an estimate. Your actual mortgage payment can depend on your lender, loan type, interest rate, taxes, insurance, fees, and other factors.
How Does a Mortgage Calculator Work?
A mortgage calculator uses the information you enter to estimate your loan payment.
The basic calculation starts with the amount you borrow. This is usually the home price minus your down payment.
For example:
| Example | Amount |
|---|---|
| Home price | $350,000 |
| Down payment | $70,000 |
| Estimated loan amount | $280,000 |
| Loan term | 30 years |
| Interest rate | 6.5% |
In this example, the estimated loan amount is $280,000.
The calculator then uses the interest rate and loan term to calculate the principal-and-interest payment. Additional housing costs can be added to create a more complete monthly estimate.
Many mortgage calculators use a standard amortization formula to spread principal and interest payments over the loan term.
What You Need to Use a Mortgage Calculator
You do not need complicated financial information to get started.
Most mortgage calculators ask for a few basic numbers.
Home Price
The home price is the amount you expect to pay for the property.
For example, if the home costs $300,000, enter $300,000 as the home price.
Changing the home price can have a large effect on your estimated payment because a more expensive home usually means a larger loan.
Down Payment
The down payment is the money you pay toward the home upfront.
For example, if you purchase a $300,000 home and put down $60,000, your starting loan amount would be approximately $240,000 before other loan costs.
A larger down payment generally means you borrow less money.
For some conventional loans, putting less than 20% down can also result in private mortgage insurance, although requirements vary by loan type and lender.
Interest Rate
The interest rate is the percentage charged for borrowing money.
Even a small difference in the interest rate can affect your monthly payment and the total interest paid over many years.
For this reason, it is useful to test several interest rates in the calculator rather than looking at only one number.
Loan Term
The loan term is the amount of time you have to repay the mortgage.
Common examples include:
- 10 years
- 15 years
- 20 years
- 30 years
A longer loan term can produce a lower monthly principal-and-interest payment, but you may pay more total interest over the life of the loan. A shorter term generally means higher monthly payments but less interest over the full loan period.
What Is Included in a Mortgage Payment?
A mortgage payment can contain several different costs.
The most basic mortgage payment consists of principal and interest. However, your complete monthly housing cost may also include taxes, insurance, mortgage insurance, and other expenses.
| Cost | What It Means |
|---|---|
| Principal | The amount borrowed that you repay |
| Interest | The cost of borrowing the money |
| Property tax | Tax charged on the property |
| Homeowners insurance | Insurance coverage for the home |
| PMI | Private mortgage insurance when required |
| HOA fee | Monthly fee for some communities |
These costs do not apply in exactly the same way to every borrower or loan.
A detailed mortgage calculator lets you add applicable costs so your estimate is closer to your expected housing expense. NerdWallet, for example, provides fields for property taxes, homeowners insurance, HOA fees, and PMI.
Principal and Interest Explained
Understanding principal and interest makes mortgage calculations easier.
Principal is the money you borrowed. If your mortgage is $250,000, the original principal is $250,000.
Interest is the cost charged by the lender for providing the loan.
Each mortgage payment normally includes both principal and interest. Over time, the amount going toward principal increases while the interest portion generally decreases as the loan balance falls.
This process is called amortization.
What Is Mortgage Amortization?
Mortgage amortization is the process of paying off a loan through regular scheduled payments.
An amortization schedule shows how each payment affects your loan balance.
For example:
| Payment | Principal | Interest | Remaining Balance |
|---|---|---|---|
| 1 | Part of payment | Part of payment | Higher balance |
| 2 | Part of payment | Part of payment | Lower balance |
| 12 | More principal over time | Less relative interest | Lower balance |
| Later years | Larger principal portion | Smaller interest portion | Much lower balance |
The exact numbers depend on the loan amount, interest rate, payment schedule, and other terms.
An amortization schedule can help you see how much you will owe at different points during the mortgage. Major mortgage calculators commonly provide this type of breakdown.
How to Calculate a Mortgage Payment
The standard fixed-rate mortgage payment formula uses the loan principal, monthly interest rate, and number of monthly payments.
The basic formula is:
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ − 1]
Where:
- M = monthly principal and interest payment
- P = loan principal
- r = monthly interest rate
- n = total number of monthly payments
For example, a 30-year mortgage has:
30 × 12 = 360 monthly payments
The annual interest rate is converted into a monthly rate before it is used in the formula. This is the standard amortization approach used by mortgage calculators.
You do not need to perform this calculation by hand. A mortgage calculator can calculate it instantly and reduce the chance of making a math error.
Mortgage Calculator Example
Suppose you are considering a $400,000 home.
You enter the following information:
| Input | Example |
|---|---|
| Home price | $400,000 |
| Down payment | $80,000 |
| Loan amount | $320,000 |
| Interest rate | 6.5% |
| Loan term | 30 years |
The calculator uses the $320,000 estimated loan amount, 6.5% interest rate, and 30-year term to estimate your principal-and-interest payment.
You can then change one number at a time.
For example, try:
- Increasing the down payment
- Lowering the interest rate
- Choosing a 15-year term
- Choosing a 20-year term
- Changing the home price
This makes it easier to understand how different loan choices affect your estimated payment.
How a Down Payment Changes Your Mortgage
Your down payment can have an important effect on the size of your mortgage.
Consider a $300,000 home:
| Down Payment | Approx. Loan Amount |
|---|---|
| $30,000 | $270,000 |
| $60,000 | $240,000 |
| $90,000 | $210,000 |
| $120,000 | $180,000 |
A larger down payment means a smaller starting loan balance.
However, the right down payment depends on your overall financial situation. You should also consider closing costs, emergency savings, moving expenses, repairs, and other homeownership costs.
Do not assume that putting every available dollar into the down payment is always the right approach.
How Interest Rate Affects Your Mortgage
The interest rate is one of the most important numbers in a mortgage calculation.
Suppose the loan amount stays the same, but the interest rate changes. The estimated monthly principal-and-interest payment will also change.
| Interest Rate | Effect on Cost |
|---|---|
| Lower rate | Usually lower interest cost |
| Higher rate | Usually higher interest cost |
| Same loan + longer term | Lower monthly payment but generally more total interest |
| Same loan + shorter term | Higher monthly payment but generally less total interest |
This is why you should not compare mortgages based only on the monthly payment.
Two loans can have similar monthly payments but very different total interest costs.
15-Year vs. 30-Year Mortgage
Loan term is another important part of mortgage planning.
A 15-year mortgage usually requires a higher monthly payment than a 30-year mortgage for the same loan amount and interest rate. However, the shorter loan is repaid faster and generally results in less total interest.
A 30-year mortgage usually spreads repayment across more months, which can reduce the required monthly principal-and-interest payment.
| Feature | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly payment | Usually higher | Usually lower |
| Repayment period | Shorter | Longer |
| Total interest | Generally lower | Generally higher |
| Principal paid | Faster | Slower |
| Budget flexibility | May be lower | May be higher |
Use the mortgage calculator to compare both terms using your own numbers.
What Are Property Taxes?
Property taxes are taxes charged by a local government on real estate.
The amount varies depending on where the property is located and how the property is assessed.
If property taxes are paid through your mortgage payment, an estimated annual tax amount can be divided into monthly amounts for budgeting purposes.
For example:
$3,600 annual property tax ÷ 12 = $300 per month
Your actual property tax bill may be different, so use the most reliable local estimate available when entering this value.
What Is Homeowners Insurance?
Homeowners insurance helps protect your home and belongings against covered risks.
The cost depends on factors such as the property, location, coverage, insurer, and policy.
If your mortgage calculator allows you to enter annual homeowners insurance, you can divide the yearly amount by 12 to estimate the monthly portion.
For example:
$1,800 annual insurance ÷ 12 = $150 per month
Adding insurance to your estimate can give you a better idea of your overall housing cost.
What Is PMI?
PMI stands for Private Mortgage Insurance.
PMI may be required on certain conventional mortgages when the down payment is below a specified level. The exact rules and costs depend on the loan and lender.
For this reason, borrowers should check their actual loan terms instead of assuming that PMI will always apply or always disappear at the same point.
If your calculator includes a PMI field, enter the estimate provided by your lender or use an appropriate planning estimate.
What Are HOA Fees?
HOA stands for Homeowners Association.
Some neighborhoods, condominiums, and planned communities charge HOA fees for services and maintenance.
For example, an HOA fee might help pay for:
- Common-area maintenance
- Landscaping
- Community facilities
- Shared building maintenance
- Other association services
HOA fees are not part of every mortgage. But if you are buying a property with an HOA, include the monthly fee when calculating your complete housing budget.
Mortgage Calculator vs. Home Affordability Calculator
These two tools answer different questions.
A mortgage calculator focuses mainly on the loan and estimated payment.
A home affordability calculator looks more broadly at how much home you may be able to afford based on income, debts, expenses, down payment, and other financial information.
| Tool | Main Purpose |
|---|---|
| Mortgage Calculator | Estimate mortgage payments |
| Home Affordability Calculator | Estimate a potential home budget |
| Loan Calculator | Estimate payments for different loans |
| Amortization Calculator | Show how payments reduce the balance |
| Interest Calculator | Estimate borrowing costs |
Using more than one calculator can give you a clearer picture of the cost of buying a home.
How to Use Our Mortgage Calculator
Using the mortgage calculator is simple.
Step 1: Enter the Home Price
Enter the expected purchase price of the property.
Step 2: Enter Your Down Payment
Enter your down payment as a dollar amount or percentage, depending on the calculator.
Step 3: Enter the Interest Rate
Use the interest rate from a lender quote or the rate you want to test.
Step 4: Choose the Loan Term
Select the number of years you expect to take to repay the loan.
Step 5: Add Extra Costs
If available, enter property taxes, homeowners insurance, PMI, and HOA fees.
Step 6: Calculate
Click the calculate button to see the estimated monthly payment and other loan information.
Step 7: Compare Different Scenarios
Change one input at a time to see how your estimated payment changes.
This last step is especially useful because it helps you understand the relationship between the home price, down payment, interest rate, and loan term.
Important Things to Check Before Getting a Mortgage
A mortgage calculator is useful for planning, but there are other costs to consider before buying a home.
Important costs may include:
- Down payment
- Closing costs
- Property taxes
- Homeowners insurance
- Mortgage insurance
- HOA fees
- Home maintenance
- Repairs
- Utilities
- Moving costs
- Mortgage interest
Your mortgage payment is only one part of the total cost of owning a home.
A good estimate should therefore look beyond the principal-and-interest number.
Tips for Using a Mortgage Calculator
Use these simple tips to get more useful results.
Use realistic numbers. Do not enter a very low interest rate just to make the payment look affordable.
Compare several loan terms. Test 15-year, 20-year, and 30-year options when appropriate.
Test different down payments. This can show how borrowing less affects your estimated payment.
Include additional costs. Property taxes, insurance, PMI, and HOA fees can make a meaningful difference to your monthly housing budget.
Look at total interest. A lower monthly payment does not necessarily mean a lower total borrowing cost.
Update your numbers. When you receive an actual lender quote, use the quoted rate and loan terms to create a more useful estimate.
Common Mortgage Calculator Mistakes
Looking Only at the Monthly Payment
A monthly payment is important, but it does not tell you the complete cost of a mortgage.
Always look at the total interest and other housing costs when comparing scenarios.
Forgetting Property Taxes and Insurance
A principal-and-interest estimate may be lower than your complete monthly housing cost.
Add taxes and insurance when you have reliable estimates.
Using an Unrealistic Interest Rate
Mortgage rates change, and the rate you receive depends on your loan and borrower profile.
Use an actual quote when possible.
Ignoring the Loan Term
A 30-year loan and a 15-year loan can have very different total costs.
Compare the terms rather than looking at only one option.
Treating the Calculator Result as a Loan Offer
A calculator provides an estimate. It does not approve your mortgage or guarantee a particular rate.
Your lender will determine the actual loan terms after reviewing your application and other information.
Frequently Asked Questions About Mortgage Calculators
What does a mortgage calculator calculate?
A mortgage calculator estimates your mortgage payment using information such as the home price, down payment, interest rate, and loan term. More detailed calculators can also include taxes, insurance, PMI, and HOA fees.
How much will my monthly mortgage payment be?
Your monthly payment depends on the amount borrowed, interest rate, loan term, and additional costs. Enter your own numbers into the mortgage calculator to get an estimate.
Is a mortgage calculator accurate?
A mortgage calculator can provide a useful estimate, but it is not a guarantee of your actual payment. Your final payment can depend on your lender, loan type, interest rate, taxes, insurance, mortgage insurance, and other costs.
Does a larger down payment lower my mortgage payment?
Generally, yes. A larger down payment means you borrow less money, which can reduce the principal-and-interest portion of the payment. Depending on the loan, it may also affect mortgage insurance.
Is a 15-year mortgage cheaper than a 30-year mortgage?
A 15-year mortgage generally has higher monthly payments but can result in less total interest because the loan is repaid faster. A 30-year mortgage generally spreads payments over a longer period and may have a lower required monthly payment.
What is amortization?
Amortization is the process of paying off a loan through regular payments over time. An amortization schedule shows how each payment is divided between principal and interest and how the remaining balance changes.
Should I include property taxes in my mortgage calculation?
Yes, if you want a more complete estimate of your monthly housing cost. Property taxes vary by location, so use a reliable estimate for the property you are considering.
What is the difference between principal and interest?
Principal is the amount you borrowed. Interest is the cost charged for borrowing that money. Your mortgage payment normally pays both over the life of the loan.
Can I use a mortgage calculator before talking to a lender?
Yes. A calculator can help you understand different payment scenarios before you contact a lender. It can also help you prepare questions about rates, loan terms, down payments, and other costs.
Does a mortgage calculator guarantee what I can afford?
No. A calculator only provides an estimate. Your actual affordability depends on your income, debts, savings, credit profile, expenses, loan terms, and other financial factors.
Final Thoughts
A mortgage calculator is a simple way to understand the potential cost of a home loan before making a major financial decision.
By entering your home price, down payment, interest rate, and loan term, you can estimate your principal-and-interest payment. Adding property taxes, homeowners insurance, PMI, and HOA fees can give you a more complete view of your possible monthly housing cost.
The most useful approach is to compare several scenarios. Try different down payments, interest rates, and loan terms and look at both the monthly payment and total interest.
Remember that calculator results are estimates, not loan offers. When you are ready to move forward, compare actual loan terms from qualified lenders and review all costs carefully.
Use our mortgage calculator to explore your numbers, understand your potential payment, and make your home-buying research easier.