Mortgage Calculator
Enter the home price, your down payment, the interest rate and the term. Add yearly property tax and insurance to see the full monthly cost, not only the loan repayment.
Enter your numbers to see the result.
What goes into a monthly mortgage payment
People often call the loan repayment the mortgage payment, but the real monthly cost has up to four parts: principal, interest, property tax and insurance. This calculator shows the first two together, then adds tax and insurance so you see what leaves your account each month.
The loan repayment uses the same amortising formula as the loan EMI calculator. With a 240,000 loan at 6.5% over 30 years, principal and interest come to about 1,517 per month. Add tax at 1.1% of a 300,000 home (275 a month) and 1,200 a year of insurance (100 a month) and the total is close to 1,892.
How the down payment changes things
A larger down payment shrinks the loan, which cuts both the monthly payment and total interest. If your down payment is below 20% of the price, many lenders also charge private mortgage insurance, which this estimate does not include. Try raising the down payment in steps of 5% to see how fast the interest total falls.
Choosing a term
A 15-year loan has higher monthly payments than a 30-year loan but usually a lower rate, and the total interest can be less than half. Run both terms and compare the monthly figure against a budget you can hold even if your income dips.
Limits of this estimate
Property tax rates, insurance costs, HOA fees and mortgage insurance vary a lot by location and lender. The figures here are estimates for comparing scenarios, not a loan offer. Ask your lender for a written estimate before you commit.
Frequently asked questions
How much house can I afford?
A common rule of thumb is to keep total housing cost below about 28% of gross monthly income. Enter different prices into the calculator until the monthly total fits your own budget.
Does the calculator include PMI?
No. Private mortgage insurance usually applies when the down payment is under 20%. Add it to the insurance field as a yearly amount if it applies to you.
Is a 15-year or 30-year mortgage better?
A 15-year loan costs far less in interest but has a higher monthly payment. A 30-year loan is easier on monthly cash flow. The right choice depends on your budget and goals.
How is property tax calculated here?
The tax field is a yearly percentage of the home price. The calculator divides the yearly tax by 12 and adds it to your monthly payment.