Mortgage calculator

What is the Mortgage Calculator?

Buying a home involves more than just paying back a loan, your actual monthly cost typically includes property tax, home insurance, and sometimes mortgage insurance or HOA fees on top of the loan payment itself. This calculator adds all of that together to show your true total monthly payment, not just the principal and interest.

Enter your home price, down payment, loan details, and ongoing costs, and get a full breakdown of exactly where your monthly payment goes, plus the total interest you'll pay over the life of the loan.

How to use it

1. Enter the home price you're considering.
2. Enter your down payment, either as a dollar amount or a percentage of the home price.
3. Enter your loan term (typically 15 or 30 years) and the interest rate you've been quoted or expect.
4. Enter your estimated annual property tax and home insurance, these vary by location and are usually available from your realtor or a quick local estimate.
5. If your down payment is under 20%, a PMI rate is included automatically, adjust it if your lender quoted a different rate.
6. Add any monthly HOA fees if the property has them.
7. Click Calculate for your full monthly payment breakdown.

What makes up your monthly payment

• Principal & interest - the actual loan repayment, calculated the same way as a standard amortized loan
• Property tax - a local government tax based on your home's assessed value, usually collected monthly as part of your mortgage payment and held in escrow
• Home insurance - required by almost all lenders to protect the home against damage, also usually collected monthly and held in escrow
• PMI (Private Mortgage Insurance) - required when your down payment is less than 20% of the home price, it protects the lender if you default, and can typically be removed once you reach 20% equity
• HOA fees - if the property is part of a homeowners association, a separate monthly fee covers shared amenities and maintenance, this is paid directly to the HOA, not the lender

Why a bigger down payment helps

A larger down payment reduces your loan amount directly, which lowers your monthly principal and interest payment and the total interest you'll pay over the loan's life. Reaching a 20% down payment also avoids PMI entirely, since PMI only applies below that threshold, this alone can meaningfully reduce your monthly cost.

15-year vs. 30-year terms

A 15-year mortgage has a higher monthly payment but a significantly lower interest rate is often available, and you'll pay off the loan (and stop paying interest) in half the time, saving a substantial amount in total interest. A 30-year mortgage spreads payments out further, keeping the monthly payment lower and more manageable, at the cost of more total interest paid over the loan's life. Try both terms in this calculator to compare the trade-off directly.

Frequently asked questions

Why is my property tax and insurance included in a "loan" payment?

Most mortgage lenders collect property tax and home insurance as part of your monthly payment and hold the funds in an escrow account, then pay your tax and insurance bills on your behalf when they're due. This bundles everything into one predictable monthly payment rather than separate annual or semi-annual bills.

Can I get rid of PMI later?

Typically yes, once your loan balance drops to 80% of the home's original value (either through payments or appreciation), you can usually request PMI be removed, check with your specific lender for their process and requirements.

Does this calculator account for closing costs?

No, closing costs are a separate, typically one-time expense paid when the loan closes, not part of the ongoing monthly payment calculated here.

How accurate are the property tax and insurance estimates?

They're only as accurate as the numbers you enter, both vary significantly by location and specific property. Check with a local realtor, your county assessor's office, or an insurance quote for figures specific to the home you're considering.