What is mortgage calculator?
A mortgage payment has four parts that people often call PITI: principal, interest, taxes and insurance. This calculator shows each part, so you can see what you would really pay each month.
Use it to test different prices, down payments, rates and terms before you speak with a lender. Even a small change in the rate can move the total cost by thousands.
How to use the mortgage calculator
- Enter the price and your down payment, as a percent or a fixed amount.
- Add the rate, term, yearly property tax and insurance.
- Read the monthly payment and the total interest over the life of the loan.
How the mortgage calculator works
The loan is the price minus the down payment. Principal and interest use the standard amortization formula with a monthly rate. Property tax and insurance are divided by 12 and added on top. Total interest equals all payments of principal and interest minus the loan.
Worked example
Common uses of the mortgage calculator
- Checking what home price fits your monthly budget.
- Comparing 15 year and 30 year loans.
- Seeing how a bigger down payment changes the payment.
- Planning for taxes and insurance on top of the loan.
- Preparing questions before meeting a lender.
Tips and common mistakes
Lenders may also charge mortgage insurance on small down payments, and homeowner association fees may apply. Add them to your budget.
Compare a 15 year and a 30 year term. The monthly payment is higher on 15 years but total interest is far lower.
Background: what to know before you rely on it
Most mortgages are amortizing loans. Each month you pay a fixed amount, and the share that goes to interest is high at the start and falls over time. On a 30 year loan at 6.5 percent, you pay more than twice the loan amount over time if you keep the loan to the end, though most people sell or refinance sooner. A down payment reduces the amount borrowed and may remove the need for mortgage insurance. Rates vary with credit score, loan type and the market. When you compare lenders, ask for a loan estimate that lists the annual percentage rate and all fees, since closing costs can be several thousand.
Private, free and fast
This tool runs entirely in your browser. What you type or choose is not uploaded to a server and is not saved after you close the page, which keeps it fast and private. It is free to use as often as you like. See more in all finance calculators, or browse the full list of tools.
Frequently asked questions
How is a mortgage payment calculated?
With the amortization formula based on loan amount, monthly rate and number of payments.
Does it include mortgage insurance?
No. Add it to the tax or insurance field if it applies.
What down payment is best?
It depends on your finances and loan type. A larger down payment lowers the loan and the interest.
Is the result an offer?
No. It is an estimate.
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Results are for information and education. For legal, financial, medical or security decisions, check with a qualified professional. Estimates only. Confirm with your lender or accountant.