Mortgage Calculator
Plan your home purchase with confidence. Calculate your monthly mortgage payment and total cost of homeownership.
Loan details
Enter your home purchase information
20.0% of home price
U.S. average is around 1.1% of home value per year
Leave at 0 if your home has no HOA
Only applied while your down payment is under 20%
Extra principal each month pays the loan off faster and cuts total interest
Monthly payment
Your estimated mortgage costs
Total monthly payment
$2,539.28
Principal, interest, taxes, insurance
Monthly breakdown
Loan amount
$320,000
Down payment
$80,000
Total interest
$408,142.36
Total Cost (incl. tax, ins)
$914,142.36
Understanding your mortgage
How this mortgage calculator works
A mortgage is one of the largest financial commitments most people ever make, and the monthly payment shown here is only the principal and interest. Property tax, homeowners insurance, and HOA dues, if any, get added on top of what this calculator shows.
Aim for a down payment of at least 20% if you can manage it. That threshold matters because it lets you avoid private mortgage insurance, a monthly cost lenders charge on top of your payment when your down payment falls short of it.
Why the total cost matters more than the payment
A 30-year loan and a 15-year loan on the same house can carry a monthly payment difference that looks small next to the total interest difference over the life of the loan, which is usually enormous. A shorter term means higher monthly payments but significantly less interest paid overall, since the balance gets paid down faster and has less time to accrue interest against.
Comparing loans by monthly payment alone hides this. Two loans with a similar payment can differ by tens of thousands of dollars in total interest depending on the rate and the term, so it is worth running both numbers before deciding.
What PMI actually is and how to get rid of it
Private mortgage insurance protects the lender, not you, if you default on a loan with less than 20% down. It typically runs 0.5% to 1.5% of the loan amount per year, added to your monthly payment, and it can usually be removed once your equity in the home crosses 20%, either automatically under federal law or by requesting it from your lender once your balance is low enough.
How this is calculated
It works out the monthly principal-and-interest payment over the life of the loan.
Payment uses the standard amortization formula: loan amount × monthly rate ÷ (1 − (1 + monthly rate) raised to the negative number of months). Total interest is all payments minus the amount borrowed.
What it assumes
- The rate is fixed for the full term.
- Property tax, insurance, and HOA are separate unless you add them.
- Extra principal payments aren't assumed.
Frequently asked questions
Does the monthly payment include taxes and insurance?
The core payment shown is principal and interest only. Property taxes, homeowners insurance, and PMI (if your down payment is under 20%) are real additional monthly costs most lenders escrow alongside your loan payment, so budget for a higher total than the base number shown.
How much does the down payment actually matter?
A larger down payment lowers your loan amount, your monthly payment, and your total interest paid, and a down payment of 20% or more typically avoids private mortgage insurance (PMI) entirely, which can be a meaningful monthly cost on its own.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan carries a higher monthly payment but a lower interest rate and dramatically less total interest paid over the life of the loan. A 30-year loan offers lower, more flexible monthly payments. Try both terms in this calculator to see the actual dollar difference for your numbers.
What interest rate should I use if I don't have a quote yet?
Use a current national average rate for your loan type as a starting estimate, then update it once you get quotes from lenders, since your actual rate depends on credit score, loan term, down payment, and market conditions at the time you lock a rate.
Estimates only. Actual rates, taxes, insurance, PMI, and fees vary by lender and location. This is not a loan offer or financial advice.