Home Mortgage Loan Calculator
Estimate your monthly mortgage payment, total interest, cash needed at closing, loan payoff cost and how much of your payment goes toward principal, interest, taxes and insurance.
1. Home & Loan Details
2. Property Costs
3. Closing Costs
4. Optional Affordability Check
Monthly Payment Breakdown
Cash Needed at Closing
Long-Term Loan Cost
Mortgage Payoff Milestones
How Mortgage Payments Are Calculated
A typical fixed-rate mortgage payment is based on the amount borrowed, interest rate and repayment term. The principal and interest portion is calculated using a standard amortization formula. Your actual monthly housing cost can be higher after adding property taxes, homeowners insurance, mortgage insurance and other applicable charges.
What Is Included in the Monthly Payment?
Principal
Principal is the amount borrowed to purchase the home. Each principal payment reduces the outstanding loan balance and builds equity.
Interest
Interest is the cost charged by the lender for borrowing money. With a standard amortizing loan, the interest portion generally becomes smaller as the outstanding principal declines.
Property Taxes
Property taxes are an ongoing cost of owning the home. The amount depends on the property and local tax rules and can change over time.
Homeowners Insurance
Homeowners insurance protects against covered property and liability risks. The premium varies according to the property, coverage and insurer.
Mortgage Insurance
Mortgage insurance can apply to certain loans and borrowers, particularly when the down payment is below a lender’s required threshold. The exact rules depend on the loan program.
HOA Fees
Homeowners’ association dues are an additional ownership cost for properties that belong to an association. These fees are often separate from the principal and interest payment.
How Much Cash Do You Need at Closing?
The amount you need at closing can include your down payment, closing costs, points and certain prepaid expenses. Credits can reduce some eligible costs. Your actual Cash to Close will be shown on your mortgage documents.
How Amortization Works
At the beginning of an amortizing mortgage, a larger portion of the principal and interest payment generally goes toward interest because the outstanding balance is higher. As the balance falls, more of each payment goes toward principal.
How to Compare Mortgage Offers
Don’t compare loans using only the advertised interest rate. Look at the loan amount, monthly principal and interest, mortgage insurance, closing costs, lender credits, points and estimated total monthly payment. The official Loan Estimate provides these figures for a specific mortgage offer.
Frequently Asked Questions
What does this calculator estimate?
It estimates the loan amount, principal and interest payment, property taxes, insurance, mortgage insurance, HOA fees, total monthly payment, closing cash, total interest and other mortgage costs.
Does the monthly payment include property taxes and insurance?
Yes. You can enter estimated property taxes and homeowners insurance, and the calculator adds those costs to the principal and interest payment.
Does a larger down payment lower the monthly payment?
Generally, yes. A larger down payment reduces the amount borrowed, which usually lowers the principal and interest payment. It may also affect mortgage insurance.
How much interest will I pay over the loan?
The calculator estimates total scheduled interest based on the loan amount, interest rate and repayment term. It assumes the loan is paid according to the standard amortization schedule.
What are mortgage points?
Points are upfront charges paid to the lender that are generally calculated as a percentage of the loan amount. They may be used to obtain a lower interest rate.
What is PMI?
Private mortgage insurance is an additional cost that may apply to certain conventional mortgages. Requirements depend on the loan and down payment.
Why is my lender’s payment different?
Your lender’s figure may use different tax, insurance, mortgage insurance, HOA or closing-cost estimates. The lender’s official Loan Estimate should be used when evaluating a specific loan.
Can I use this to see how much house I can afford?
Yes, the optional income and debt section gives a basic budgeting comparison. However, affordability depends on your complete financial situation, not just the amount a lender may approve.
Does this work for a 15-year mortgage?
Yes. Select the 15-year term. You can also compare 10-, 20-, 25- and 30-year terms to see how the payment and total interest change.
This calculator is for educational and planning purposes only. It is not financial, mortgage, tax or legal advice and does not guarantee loan approval, rates, costs or actual payments.