Mortgage Calculator

What this estimate assumes

• Principal & interest use the standard fixed-rate amortization formula.
• PMI is estimated at 0.5%/year of the loan amount when your down payment is under 20% — real PMI rates vary by lender and credit score.
• Property tax, insurance, and HOA are averaged into your monthly payment the way an escrow account typically works.

Want more context on rates and PMI? Read How Mortgage Rates Actually Work.

How to use this calculator

1. Enter the purchase price you're considering (or already have in an offer) in Home price.
2. Enter the percentage you plan to put down in Down payment (%). This sets how much you're actually financing and whether PMI gets added — most lenders require PMI below 20% down.
3. Enter the rate you've been quoted or are shopping against in Interest rate (APR %).
4. Pick your loan length in Loan term (years) — almost always 30 or 15.
5. If you have them, add your Annual property tax ($), Annual home insurance ($), and Monthly HOA ($). Your lender or a real estate listing usually lists the first two; leave any you don't know as-is.
6. Click Calculate monthly payment. The result splits your payment into principal & interest, taxes/insurance/HOA, and PMI, plus your total interest paid over the life of the loan.

Worked example

Take the calculator's own default numbers: a $400,000 home with 20% down ($80,000), leaving a $320,000 loan at 6.5% APR over 30 years, with $4,800/year property tax, $1,400/year insurance, and no HOA.

The monthly interest rate is 6.5% ÷ 12 = 0.5417%, and a 30-year loan runs 360 months. Plugging that into the standard amortization formula gives a principal & interest payment of about $2,022.62/month. Because the down payment is exactly 20%, PMI is $0 — the calculator only adds PMI below the 20% mark. Property tax and insurance add $4,800 ÷ 12 = $400 and $1,400 ÷ 12 ≈ $116.67, for $516.67/month in escrow costs. Add that to principal & interest and the total monthly payment comes to about $2,539.29. Over the full 30-year term, you'd pay roughly $408,143 in interest alone — more than the original loan amount — which is the real cost of spreading a mortgage out that long.

Frequently asked questions

Why does my result show $0 for PMI?

PMI (private mortgage insurance) only applies when your down payment is below 20%. If you enter 20% or more, the calculator assumes you've cleared that threshold and won't add it. Put in 10% or 15% down instead and you'll see an estimated PMI line appear, calculated at roughly 0.5% of the loan amount per year.

How close is the property tax estimate to what I'll actually pay?

It's only as accurate as the annual figure you enter. Property tax rates vary enormously by county and even by school district, so pull the actual number from the home's current tax bill or listing instead of guessing — a $400,000 home can have a tax bill anywhere from $2,000 to $12,000+ a year depending on location.

What changes if I put down less than 20%?

Two things: your financed principal goes up, which raises the principal & interest payment, and PMI kicks in on top of that, adding roughly 0.5%/year of the loan balance until you hit 20% equity. Try dropping the down payment to 10% on the same $400,000 home and you'll see both effects at once.

Does this number include closing costs or moving expenses?

No. This is strictly your recurring monthly housing payment — principal, interest, taxes, insurance, PMI, and HOA. Closing costs (typically 2-5% of the purchase price) are a separate, one-time expense due at signing and aren't part of any monthly payment calculation.

Why is my total monthly payment so much higher than just principal and interest?

Because lenders typically collect property tax and homeowners insurance monthly through an escrow account alongside your loan payment, rather than you paying them in one or two annual lump sums. In the example above, taxes and insurance add over $500/month on top of the $2,022.62 principal & interest payment — that gap is normal, not an error.

Should I choose a 15-year or 30-year term?

A 15-year term means a higher monthly payment but dramatically less total interest, since you're paying down principal faster and over fewer compounding periods. A 30-year term keeps the monthly payment lower and more manageable, at the cost of paying far more interest over time. Run both terms through this calculator with the same price and rate to see the exact trade-off for your numbers.