Mortgage Calculator

This calculator uses the standard amortization formula for the principal & interest portion of your payment: your loan amount, interest rate, and term determine a fixed monthly payment where each payment covers that month's interest plus a bit of principal, with the principal share growing over time. The chart above shows exactly that — your balance falls slowly in the early years (when payments are mostly interest) and faster near the end.

Property tax and homeowners insurance are optional — enter your best annual estimate and we'll convert it to a monthly amount and add it to your total payment. Many lenders collect these through an escrow account, so they show up inside your monthly payment either way.

PMI (private mortgage insurance) is required by most lenders when your down payment is below 20% of the home price. We estimate it at 0.5% of your loan amount per year and add it automatically whenever your down payment is under 20% — but be aware that 0.5% is the low end of the real range. Actual PMI rates vary by lender, credit score, and loan type, typically from about 0.5% up to 1.5% annually, so treat our figure as a floor, not a promise. PMI can usually be removed once you've built about 20% equity.

A worked example

Take the defaults: a $400,000 home with 20% down ($80,000) leaves a $320,000 loan. At 6.5% over 30 years, the principal & interest payment is about $2,023 a month — and the total interest over the full term is roughly $408,000, more than the loan itself. That's not a trick; it's what 30 years of interest on a large balance costs. It's also why the same loan at 15 years (about $2,787/month) costs roughly $182,000 in interest — the higher payment buys back about $226,000. Run both terms and compare the receipts.

Common questions

Why is my real quote different? Lenders price loans on your credit score, debt-to-income ratio, points, and fees — this page computes the math on the numbers you give it, not a personalized offer. Compare offers using the APR, which folds in most fees.

Should I include HOA fees? We don't model HOA fees because they vary so much — if your target home has one, mentally add it to the total monthly figure.

Can I model a 0% loan? Yes — a 0% rate is legitimate (family loans, promotions) and the math handles it: the payment is simply the loan divided by the number of months.

This is an estimate for general information, not financial or lending advice. Talk to a lender for numbers you can actually rely on. Found an error? Tell us and we'll fix it.