Mortgage Calculator: Estimate Your Monthly Payment
Buying a home is the biggest financial decision most people ever make — and the monthly payment is the number that decides everything. This free mortgage calculator shows your full monthly payment (principal, interest, taxes, insurance and HOA), the total interest you'll pay over the life of the loan, and how much the house really costs by the time it's paid off.
Mortgage Calculator
How to Use This Calculator
Enter the home price and your down payment — the calculator subtracts them to find your loan amount. Then enter the interest rate you've been quoted and choose a 15-, 20- or 30-year term.
To see your true total monthly outlay, also enter your annual property tax and home insurance (you'll find both on the listing or your local tax office), plus any monthly HOA fees.
Click Calculate. The tool shows your principal-and-interest payment, the escrow amounts, the total you'd pay each month, the total interest over the life of the loan, and what the home costs in total once the loan is finished. Click Reset to start over.
The Formula
Mortgage payments use the standard amortization formula: M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12).
Worked example: a $320,000 loan at 6.5% for 30 years. The monthly rate r = 0.065 ÷ 12 = 0.005417, and n = 360 payments. The monthly payment works out to $2,022.62. Over 360 payments that totals $728,143, so total interest = $728,143 − $320,000 = $408,143 — the interest costs more than the house itself.
Tips
Compare at least three lenders on the same day and ask each for a Loan Estimate — the three-page form makes fees and rates easy to compare side by side.
A 1% rate difference matters enormously. On a $320,000, 30-year loan, 6.5% versus 5.5% is about $206 per month — nearly $74,000 over the life of the loan.
Paying just one extra month's payment per year cuts a 30-year mortgage down to roughly 23 years. If your lender allows extra principal payments without penalty, it's one of the simplest ways to save tens of thousands.
Frequently Asked Questions
What is included in a monthly mortgage payment?
A monthly mortgage payment has two parts. Principal and interest (P&I) repay the loan itself. Most lenders also collect property taxes, homeowners insurance and sometimes mortgage insurance or HOA dues into an escrow account and pay them for you. This calculator adds your tax, insurance and HOA figures to the P&I amount so you see the total you would pay each month.
How does the down payment affect my mortgage?
A larger down payment lowers the amount you borrow, which lowers your monthly payment and the total interest you pay. It can also remove private mortgage insurance (PMI) — lenders usually require PMI when the down payment is below 20%, adding roughly 0.5% to 1% of the loan amount per year until you reach 20% equity.
What is a good mortgage rate?
There is no single good rate — mortgage rates change constantly with the economy, and your rate depends on your credit score, down payment, loan type and term. Shop at least three lenders, compare rates on the same day, and pay attention to fees as well as the rate. A lower rate with high fees can cost more than a slightly higher rate with low fees — an APR comparison shows the true cost.
Should I choose a 15-year or 30-year mortgage?
A 30-year loan has a lower monthly payment and more flexibility; a 15-year loan usually has a lower interest rate and far less total interest, but a higher monthly payment. As a rule of thumb, if you can comfortably afford the 15-year payment while still saving and investing, it saves a lot over the long run; if it stretches your budget, the 30-year loan is safer.
How much house can I afford?
Most lenders allow your total monthly payment (mortgage plus taxes and insurance) to be up to about 28% to 36% of your gross monthly income, depending on your other debts. A conservative guideline is to keep your total payment under 28% of gross income. Try different home prices in this calculator until the total monthly payment fits comfortably within that range.