FastCalcs

Mortgage calculator

See your full monthly housing payment, not just the loan. Enter the home price, down payment and rate, then adjust taxes, insurance, PMI and HOA fees to match your area.

$
years
%

Example rate. Use the rate you are quoted.

Monthly costs on top of the loan

$a year
% a year

Only charged with less than 20% down.

$a month
$

Amortization schedule

How the mortgage calculator works

The calculator works out the principal and interest with the standard amortization formula, then adds the costs that come with owning the home.

Principal and interest = L × r × (1 + r)n ÷ ((1 + r)n − 1)

  • L is the loan amount: the home price minus your down payment.
  • r is the monthly rate: the yearly rate ÷ 12 ÷ 100.
  • n is the number of monthly payments: years × 12.

Property tax and insurance are divided by 12 and added each month. If you put down less than 20%, PMI is added at the yearly rate you enter, charged on the loan amount, and removed once the loan is scheduled to reach 78% of the home price, as federal rules require.

Worked example

You buy a $400,000 home with 20% down on a 30-year loan at 6.5%.

  1. Loan amount: $400,000 − $80,000 = $320,000.
  2. Principal and interest: $2,022.62 a month.
  3. Property tax at 1.1% a year: $4,400 ÷ 12 = $366.67 a month.
  4. Insurance at $1,500 a year: $125 a month.
  5. Total: about $2,514 a month. With 20% down, there is no PMI.

Put down 10% instead and the loan grows to $360,000. Principal and interest rise to $2,275.44, and PMI at 0.5% adds $150 a month until the balance is scheduled to fall to $312,000, 78% of the price.

Ways to lower your payment

  • Put 20% down if you can to avoid PMI altogether.
  • Shop several lenders. A rate 0.5% lower can save tens of thousands over 30 years.
  • Check the property tax rate for the exact town or county. It varies widely, even between neighbors.
  • Ask about the insurance premium before you buy. Flood, wind and fire risk can change it a lot.

Frequently asked questions

What is included in a monthly mortgage payment?

Usually four things, often called PITI: principal (paying down the loan), interest, property taxes and homeowners insurance. Many lenders collect the taxes and insurance in an escrow account. PMI and HOA dues may be added on top.

What is PMI and when does it go away?

Private mortgage insurance protects the lender when you put down less than 20% on a conventional loan. Under the federal Homeowners Protection Act, you can ask to cancel it once your balance reaches 80% of the home’s original value, and it must end automatically when the balance is scheduled to reach 78%. FHA loans have their own mortgage insurance rules.

How much house can I afford?

A common guideline is to keep your total housing payment, including taxes and insurance, under about 28% of your gross monthly income, and all your debt payments under about 36%. Lenders set their own limits, so treat these as a starting point.

Is a 15-year or 30-year mortgage better?

A 15-year mortgage has a higher monthly payment but usually a lower rate and far less total interest. A 30-year mortgage keeps the payment lower and leaves more room in your budget. Compare both in the calculator by changing the loan term.

Do extra payments really make a difference?

Yes. Extra principal payments reduce the balance that interest is charged on, so they cut total interest and shorten the loan. Even one extra payment a year can take years off a 30-year mortgage. Confirm with your lender that extra payments go to principal.

Sources

Calculations are exact for a fixed-rate mortgage with the numbers you enter. Taxes, insurance and HOA fees are held constant, although they usually rise over time. Your lender's Loan Estimate is the figure to rely on. This is not financial advice. Read the full disclaimer and how we check our formulas.