Use this free Mortgage Calculator to estimate your monthly home payment. Enter the home price, down payment, interest rate, and loan term to see your estimated principal and interest payment, along with property taxes, insurance, and HOA fees.
How to Use the Mortgage Calculator
Using the Mortgage Calculator is simple:
- Enter the home price.
- Enter your down payment.
- Enter the expected interest rate.
- Choose your loan term.
- Add your yearly property tax and home insurance if you want them included.
- Enter your monthly HOA fee, if applicable.
- Click Calculate.
The calculator will show your estimated monthly payment along with the loan amount, principal and interest, property taxes, insurance, HOA fees, and total interest.
Mortgage Calculator Example
Suppose you are buying a home for $400,000 and making a $80,000 down payment. That leaves a mortgage loan of $320,000.
Enter your interest rate and loan term to see the estimated monthly principal and interest payment. You can also add property taxes, home insurance, and HOA fees for a more complete monthly estimate.
What Does a Mortgage Payment Include?
A mortgage payment can include several costs:
- Principal: The amount borrowed toward the home.
- Interest: The cost charged by the lender for the loan.
- Property taxes: Local taxes charged on the property.
- Home insurance: Insurance coverage for the home.
- HOA fees: Monthly fees charged by a homeowners association, if applicable.
Not every homeowner will have all of these costs.
How Does the Mortgage Calculator Work?
The calculator uses the loan amount, interest rate, and loan term to estimate the monthly principal and interest payment.
The basic mortgage payment formula is:
M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]
Where P is the loan amount, r is the monthly interest rate, and n is the total number of monthly payments.
Property tax and home insurance are converted to monthly amounts and added to the estimated payment. HOA fees are also added when entered.
Why Does the Down Payment Matter?
A larger down payment means you borrow less money. This can reduce the monthly principal and interest payment and can also reduce the total interest paid over the life of the loan.
The actual requirements and costs can vary depending on the lender and loan program.
Frequently Asked Questions
What is a mortgage?
A mortgage is a loan used to purchase a home or other real estate. The property is generally used as security for the loan.
Does this calculator include property taxes?
Yes. You can enter your estimated annual property tax, and the calculator adds one-twelfth of that amount to the monthly estimate.
Does it include homeowners insurance?
Yes. Enter your estimated yearly home insurance cost to include it in the monthly payment estimate.
Can I include HOA fees?
Yes. Enter your monthly HOA fee if the property is part of a homeowners association.
What happens if I change the loan term?
Changing the loan term changes the number of monthly payments and usually changes both the monthly payment and the total interest paid.
Does this calculator include PMI?
No. The calculator does not currently include private mortgage insurance (PMI). If PMI applies to your loan, your actual monthly payment may be higher.
Is the result the exact payment I will get from a lender?
No. It is an estimate. Your actual payment can vary based on the lender, loan type, interest rate, taxes, insurance, fees, and other costs.
Can I use this calculator for a 15-year mortgage?
Yes. Select 15 years from the loan-term dropdown. You can also choose 10, 20, 25, 30, or 40 years.
Is this Mortgage Calculator for US dollars?
Yes. The calculator is designed for US home prices and displays amounts in USD ($).