Mortgage Calculator
Use this mortgage calculator to estimate how much a home loan could cost each month, including principal and interest plus common housing expenses like property taxes, homeowners insurance, HOA fees, and PMI.
It is built for practical US home-buying planning: compare down payment options, test different mortgage rates, and see the difference between the base mortgage payment and a fuller monthly housing estimate.
Results are planning estimates only. Taxes and insurance may be included if entered, but lender fees, escrow practices, local cost differences, and real mortgage quotes can vary.
How to use this calculator
- Enter the home price and the amount you plan to put down.
- Choose the mortgage term and interest rate you want to model.
- Add annual property tax and annual home insurance estimates for the home.
- Include monthly HOA fees and PMI if they apply to your situation.
- Review the difference between principal and interest, total monthly housing payment, loan amount, and total interest paid over the loan term.
This works well for early home-buying research, comparing listings, or seeing how a larger down payment changes both borrowing cost and monthly payment.
How it works
This calculator first estimates the monthly principal and interest payment on the mortgage loan amount, then adds the housing costs you enter for taxes, insurance, HOA fees, and PMI.
The goal is to show both the base mortgage payment and a fuller monthly housing estimate, since homeownership costs usually go beyond principal and interest alone.
Monthly payment formula
Monthly P&I = L × r × (1 + r)n / ((1 + r)n − 1)
Main inputs in the estimate
- L
- Loan amount, which equals home price minus down payment
- r
- Monthly mortgage rate derived from the annual interest rate
- n
- Total number of monthly payments over the loan term
What the estimate assumes
- Property taxes and home insurance are added as monthly estimates based on the annual amounts you enter.
- HOA fees and PMI are treated as monthly housing costs, not part of principal and interest.
- Total paid over loan term and total interest paid reflect principal and interest only.
- The mortgage payment estimate assumes a fixed rate and equal monthly payments over the full term.
Assumptions and limitations
- This calculator is for planning only and is not a mortgage quote or loan approval.
- Actual lender offers, fees, escrow practices, and closing costs may differ from the estimate shown here.
- Property taxes, insurance, HOA dues, and other housing costs can vary by property, location, and over time.
- PMI rules vary by lender and loan type, and PMI is not automatically calculated by this tool.
- Total paid over loan term reflects principal and interest only, not taxes, insurance, HOA, or PMI over time.
Example scenario
Use this worked example to see how a realistic US mortgage estimate can change when you include common housing costs beyond principal and interest.
- Home price:
$400,000 - Down payment:
$80,000 - Loan term:
30 years - Interest rate:
6.75% - Annual property tax:
$4,800 - Annual home insurance:
$1,800 - Monthly HOA fees:
$150 - Monthly PMI:
$120
With those inputs, the estimated principal and interest payment is $2,075.51 per month.
After adding estimated taxes, insurance, HOA, and PMI, the total monthly housing payment becomes $2,895.51.
The estimated loan amount is $320,000, and total interest paid over the loan term is about $427,185.01.
This example shows why mortgage planning is not only about the loan payment. Taxes, insurance, association dues, and PMI can materially change the monthly number you need to budget for.
Frequently asked questions
What is included in a mortgage payment?
A mortgage payment usually includes principal and interest. Many homeowners also pay property taxes, homeowners insurance, and sometimes PMI through their monthly payment. HOA fees are separate but still matter for housing-cost planning.
Does this calculator include taxes and insurance?
Yes. You can enter annual property tax and annual home insurance to estimate a fuller monthly housing payment. Those costs are estimates and can vary by property and location.
What is PMI?
PMI stands for private mortgage insurance. It may apply when your down payment is below certain lender thresholds, often below 20 percent. This calculator lets you enter PMI as an optional monthly estimate.
Do I need PMI with a 20% down payment?
Often no, but lender rules and loan programs vary. Many conventional loans do not require PMI at 20 percent down, but you should confirm with your lender.
Why is my total monthly payment higher than principal and interest?
Because total monthly housing cost may include property taxes, home insurance, HOA fees, and PMI in addition to the base principal and interest payment.
Is this a mortgage quote?
No. This is a planning estimate, not a lender quote or loan approval. Actual mortgage offers depend on credit, loan program, fees, escrow setup, taxes, insurance, and lender-specific underwriting.
Does HOA count as part of my mortgage payment?
HOA dues are usually not part of the loan itself, but they still affect what you may need to budget each month for the home.
How can I lower my mortgage payment?
Common ways include buying a less expensive home, making a larger down payment, choosing a longer term, lowering taxes or HOA assumptions, or qualifying for a lower interest rate.
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