Mortgage calculator
Enter the price, your down payment and the rate to see the full monthly payment and what the loan costs over its life.
- Home price$400,000.00
- Down payment (20.000%)-$80,000.00
- Loan amount$320,000.00
- Principal and interest (6.5%, 30 yr)$2,022.62
- Property tax$400.00
- Home insurance$125.00
- Total interest over the loan$408,143.20
- Total of all loan payments$728,143.20
How to use it
- Enter the home price and the cash you'll put down.
- Enter the interest rate you've been quoted and pick the term.
- Add yearly property tax and insurance if you want the full escrowed payment, and HOA dues if there are any.
- Read the monthly payment. The rows show how it splits and what the loan costs in interest over its life.
Worked example
A $400,000 home with $80,000 down at 6.5% for 30 years, with $4,800 tax and $1,500 insurance a year.
Loan is $320,000. Monthly rate is 0.5417%. Principal and interest = $320,000 × 0.005417 × 1.005417³⁶⁰ ÷ (1.005417³⁶⁰ − 1) = $2,022.62. Add $400 tax and $125 insurance for a total of $2,547.62 a month. Over 30 years the loan costs $408,143.20 in interest.
How it's calculated
loan = price − down payment
monthly rate r = annual rate ÷ 12
principal and interest = loan × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where n is the number of monthly payments
monthly payment = principal and interest + property tax ÷ 12 + insurance ÷ 12 + HOA + mortgage insurance
total interest = principal and interest × n − loan
Mortgage insurance is the yearly rate × loan ÷ 12, applied only when the down payment is under 20% of the price.
FAQ
How much house can I afford on my income?
Lenders generally cap total housing costs at 28% to 31% of gross income and all debts at 36% to 43%. Use the home affordability calculator to turn your income and debts into a price; this one goes the other way, from a price to a payment.
What is PMI and when does it stop?
Private mortgage insurance protects the lender when you put down less than 20%. It typically runs 0.3% to 1.5% of the loan per year. You can ask to cancel it at 20% equity and it must be cancelled automatically at 22%, based on the original schedule.
Does a 15-year loan really save that much?
Yes. On $320,000 at 6.5%, a 30-year loan costs about $408,000 in interest; a 15-year loan at the same rate costs about $182,000, and 15-year rates are usually lower still. The payment is roughly $765 a month higher.
Why is my lender's payment slightly different?
Escrow amounts are estimated and re-set each year, lenders may round the payment up, and some include flood insurance or a cushion. The principal and interest figure should match to the cent for the same loan, rate and term.
Are points and closing costs included?
No. Points are prepaid interest and closing costs are paid at signing; neither is in the monthly figure. The APR calculator folds those into an annual rate so you can compare loan offers.