Estimated total monthly payment
0.00
Enter a home price, an interest rate and a term greater than zero. The down payment must be below 100%.
- Principal and interest0.00
- Property tax0.00
- Home insurance0.00
Loan amount
Total interest over the loan
0.00Estimates only. This calculator does not include private mortgage insurance (PMI), HOA fees or closing costs.
How this mortgage calculator works
Enter the home price, your down payment, the loan term and the interest rate. Add your yearly property tax and home insurance to see what you would really pay each month, not just the loan itself.
What is in a mortgage payment
A typical monthly payment has four parts, often called PITI: principal, interest, taxes and insurance. Principal is the part that reduces your loan balance. Interest is the cost of borrowing. Property tax and home insurance are usually collected by your lender each month and paid for you.
The formula behind it
Principal and interest use the standard fixed-rate formula. The payment equals the loan amount times the monthly rate, divided by one minus (1 + monthly rate) raised to the power of minus the number of payments. The monthly rate is the annual rate divided by 12, and the number of payments is the term in years times 12.
Example
A 400,000 home with 20% down means a 320,000 loan. At 6.5% for 30 years, principal and interest come to about 2,023 per month. Over 30 years that adds up to about 728,000, of which roughly 408,000 is interest. With property tax of 1.1% and insurance of 1,500 a year, the total monthly payment is about 2,514.
Frequently asked questions
How much down payment do I need?
Many loans allow a down payment below 20%, but then lenders usually charge private mortgage insurance (PMI) until you have enough equity in the home. Try different percentages above to see how the payment changes.
Is a 15-year or a 30-year mortgage better?
A 15-year loan has a higher monthly payment but far less total interest. A 30-year loan has a lower payment but costs much more over time. Change the term above to compare them.
Does a lower interest rate make a big difference?
Yes. On a loan this size, even half a percentage point changes the monthly payment by tens of dollars and the total cost by tens of thousands over 30 years.