Mortgage Calculator

The headline number is your estimated total monthly (or annual) housing payment. The breakdown below it separates principal and interest — the part that pays down the loan and compensates the lender for interest — from the escrow-style items: property tax, insurance, PMI and HOA dues. The "Loan totals" group shows the full cost of borrowing: total interest paid over the life of the loan compared with the original principal, which is often the most surprising figure for first-time buyers.

Start with the purchase price and the cash you plan to put down. You can enter the down payment either as a percentage or as a dollar amount — the calculator derives the loan amount from whichever you choose.

Next, set the loan term and interest rate. Rates are specific to your credit profile, loan type and the day you lock, so use a quote you have actually been given rather than a headline average.

The ongoing-cost fields drive the escrow portion of your payment. Property tax should come from the county record for that address, insurance from a real quote, and HOA dues from the listing. PMI applies on conventional loans while your loan-to-value ratio is above 80%; rates commonly fall between roughly 0.3% and 1.5% of the loan per year depending on credit score and down payment.

Switch the display between monthly and annual amounts to suit how you budget.

Principal and interest come from the standard amortization formula:

M = P × [ r(1 + r)^n ] / [ (1 + r)^n − 1 ]

• P — loan principal (home price minus down payment)
• r — monthly interest rate (annual rate ÷ 12 ÷ 100)
• n — total number of monthly payments (years × 12)

When the interest rate is zero the formula is undefined and the payment is simply P ÷ n. Escrow items are added on top: monthly tax = annual tax ÷ 12, monthly insurance = annual premium ÷ 12, and monthly PMI = loan × PMI rate ÷ 12 while LTV exceeds 80%.

A $400,000 home with 20% down leaves a $320,000 loan. At 6.5% over 30 years, r = 0.0054167 and n = 360:

M = 320,000 × [0.0054167 × 1.0054167^360] / [1.0054167^360 − 1] ≈ $2,022

Adding $4,800 of annual property tax ($400/month) and $1,800 of insurance ($150/month) gives an estimated total of about $2,572 per month. No PMI applies because the loan-to-value ratio is exactly 80%. Over the full term, total interest on that loan is roughly $408,000 — more than the original principal, which is why the term you choose matters as much as the rate.

Down payment size

A bigger down payment shrinks the loan, lowers LTV below 80% (removing PMI on conventional loans), and can qualify for a better rate.

Credit score and loan type

Rate and PMI pricing both depend heavily on credit score; FHA, VA and USDA loans use different mortgage-insurance rules than conventional loans.

Loan term

Extending the term lowers the monthly P&I payment but increases total interest paid, since the balance stays higher for longer.

Local tax rate and reassessment

Property tax varies by county and can jump after a sale if the county reassesses at the new purchase price.

Escrow changes

Insurance premiums and tax bills tend to rise over time, so most homeowners see their payment increase even on a fixed-rate loan.

• Comparing rate quotes without APR

  A lower rate with high points can cost more than a slightly higher no-point rate; APR normalizes for fees over the term.

• Forgetting PMI in the budget

  Buyers who put down less than 20% often underestimate their payment by skipping PMI, which can add $100+ per month on a typical loan.

• Using a national average tax rate

  Property tax rates differ by state, county, and even school district; the actual bill for the specific parcel should be used.

• Ignoring total interest

  Focusing only on the monthly payment hides how much a longer term or higher rate adds up to over decades.

• Assuming taxes and insurance never change

  Both typically increase with reassessment and premium renewals, so a payment calculated today may understate next year's bill.

• Get a written Loan Estimate before comparing lenders — it standardizes rate, APR, fees and estimated escrow so you can compare like for like.
• Run the calculator at both a 15-year and 30-year term to see the tradeoff between monthly payment and total interest.
• Use the actual property tax bill for the address, not a citywide average, since rates vary by taxing district.
• If your down payment is close to 20%, check whether a slightly larger down payment removes PMI entirely.
• Recheck your estimate after any rate change of more than about 0.25 percentage points — it can meaningfully shift affordability.

A lender's actual Loan Estimate and later Closing Disclosure will include origination fees, title costs, prepaid interest, and an initial escrow deposit that this calculator does not model. Your real first payment can also differ based on the exact closing date, since interest accrues daily between closing and the first scheduled payment.

What this calculator assumes

• The interest rate is fixed for the entire term.
• Payments are made monthly, on time, with no extra principal payments.
• Property tax and insurance stay constant; in reality both usually rise over time.
• PMI is charged at a constant annual percentage of the original loan amount while LTV exceeds 80%.

What it does not account for

• Adjustable-rate mortgages, interest-only periods and balloon structures.
• Discount points, lender credits, origination fees and other closing costs.
• FHA, VA and USDA programs, which have their own mortgage-insurance rules and funding fees.
• Escrow shortage or surplus adjustments after an annual escrow analysis.

• CFPB — What is a mortgage escrow or impound account?
• CFPB — Explore interest rates and APR
• CFPB — When can I remove private mortgage insurance (PMI)?