Mortgage Calculator

How to use Mortgage Calculator

1. Enter the home price and your down payment, either as a percentage of the price or as a fixed amount.
2. Enter the annual interest rate and the loan term in years.
3. Optionally add yearly property tax, home insurance and HOA fees to see the full monthly cost.
4. Read the monthly payment, total interest and the yearly table of principal, interest and remaining balance.

What this mortgage calculator does

A mortgage is a loan secured on a property that you repay in equal monthly instalments over a fixed number of years. Early in the loan most of each payment covers interest; as the balance shrinks, more of the payment goes to principal. This calculator shows that shift in its yearly table, so you can see how slowly the balance falls in the first years and how quickly it falls near the end.

The result is split into two parts. Principal and interest is the payment that repays the loan itself. Tax, insurance and HOA are the running costs of owning the home, which many lenders collect together with the loan payment. The total monthly figure adds them, using one twelfth of each yearly amount you enter. Leave those boxes empty if you only want the loan payment.

Formula and a worked example

Monthly payment M = L × i ÷ (1 − (1 + i)^−n), where L = home price − down payment, i = annual rate ÷ 12 ÷ 100 and n = years × 12.

Example: a home price of 400,000 with a 20 percent down payment means a loan of 320,000. At 6.5 percent over 30 years, i = 0.065 ÷ 12 = 0.0054167 and n = 360, giving a monthly principal and interest payment of about 2,022.62. Over 360 payments you would pay about 728,142 in total, which is about 408,142 of interest. If you also pay 4,800 a year in property tax and 1,200 a year in insurance, that adds 500 a month and the total becomes about 2,522.62.

Tips and limits

Compare a few scenarios before you commit. Changing the term from 30 to 15 years usually raises the monthly payment but cuts total interest dramatically. Small differences in the rate also add up across hundreds of payments.

• Do not stretch your budget to the maximum the calculator lets you borrow; leave room for repairs and changes in tax or insurance.
• This tool assumes a fixed rate and equal payments. It does not model adjustable rates, extra payments, mortgage insurance, closing costs or points.
• Property tax, insurance and HOA are estimates you type in. They are never filled in for you, because they vary by place and change over time.
• The result is an estimate, not financial advice. Ask a licensed lender or adviser for an official quote.
• Your inputs stay on your device; nothing is uploaded or stored.

Why use this mortgage calculator tool

• Full monthly cost. Adds property tax, insurance and HOA fees (entered per year) on top of principal and interest.
• Yearly payoff table. See how much of each year’s payments goes to interest versus principal, and the balance left.
• Flexible down payment. Type the down payment as a percentage or as an exact amount.
• Private. Everything is calculated in your browser; none of your numbers are sent anywhere.

Frequently asked questions

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