How your mortgage payment is calculated
Enter the home price, your down payment, the interest rate and the loan term. The calculator works out the loan amount and the monthly principal and interest. For example, a $400,000 home with 20% down means a $320,000 loan; at 6.5% for 30 years, principal and interest come to $2,022.62 a month, and you'd pay about $408,142 in interest over the life of the loan.
Taxes, insurance, HOA and PMI
Your real monthly payment usually includes more than the loan. Open “Taxes, insurance, HOA & extra payments” to add property tax and homeowners insurance (often paid through an escrow account) and your HOA fee. If you put down less than 20%, lenders typically charge private mortgage insurance (PMI), commonly 0.3%–1.5% of the loan per year; the calculator adds it automatically and shows a breakdown of the total.
How extra payments save you money
Every extra dollar goes straight to principal. In the example above, paying $200 more each month pays the loan off in about 23 years and 5 months instead of 30 and saves roughly $105,000 in interest. The amortization schedule shows, year by year, how much of what you pay goes to interest and how much to principal; you can download the full monthly table as CSV.
Tips before you apply
- A common guideline is to keep your total housing payment under 28% of your gross monthly income.
- Compare offers by APR, which includes fees, not only by interest rate.
- A 15-year loan has a higher payment but far less interest than a 30-year loan.
For car financing, try Auto Loan Calculator; to see how long it takes to clear card debt, use Credit Card Payoff Calculator.
Frequently Asked Questions
How much house can I afford?
A common rule is to keep your total monthly housing payment (including taxes and insurance) under 28% of your gross monthly income, and all debt payments under 36%.
What is PMI and when can I remove it?
Private mortgage insurance protects the lender when you put down less than 20%. On conventional loans you can usually ask to cancel it once you reach 20% equity, and it ends automatically at 22%.
Does this calculator include property tax and insurance?
Yes, if you add them in the optional section. The result then shows the total monthly payment and a breakdown.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but usually a lower rate and much less total interest. A 30-year loan keeps payments lower and more flexible.