Mortgage Payment Calculator

How do you use this mortgage payment calculator?

Enter the price, your down payment, a rate and a term, then add local taxes, insurance, HOA dues and PMI. The calculator returns one monthly number plus a line-by-line breakdown, so you can see which part of the payment is driving the cost.

A few tips on each input:

• Home price and down payment: the difference is your loan amount. Try your target price and one a little lower.
• Interest rate: use a quote from a lender’s Loan Estimate if you have one. Otherwise, treat the rate as an example and test a range.
• Property tax rate: use the rate for the county you are shopping in, not a national figure.
• Homeowners insurance: a real quote beats a guess, especially in areas with storm or wildfire risk.
• PMI rate: only matters if you put down less than 20%. Ask a lender what rate fits your credit score.

How is the payment calculated?

The calculator adds five monthly pieces: principal and interest from the standard loan formula, one-twelfth of your yearly property tax and insurance, PMI when your loan is above 80% of the price, and HOA dues.

Principal and interest use the standard amortization formula:

M = P × r(1 + r)^n / ((1 + r)^n − 1)

Here P is the loan amount (price minus down payment), r is the yearly rate divided by 12, and n is the number of monthly payments (term × 12).

The other pieces:

• Property tax = price × tax rate ÷ 12.
• Insurance = yearly premium ÷ 12.
• PMI = loan amount × PMI rate ÷ 12, but only when the loan-to-value ratio is above 80%.
• HOA = the monthly dues you enter.
• Total interest = principal-and-interest payment × number of payments − loan amount.

What is not included: closing costs, utilities, maintenance, FHA’s upfront premium, and future changes to taxes or insurance. PMI is shown as a flat first-year amount even though it can be removed later.

What does a worked example look like?

Take a $400,000 home with $40,000 down at an example rate of 6.5% on a 30-year loan. With a 1.1% tax rate, $1,800 a year of insurance and a 0.5% PMI rate, the full payment is about $2,942 a month.

Change one thing and the result moves a lot. With 20% down ($80,000), the loan drops to $320,000, PMI goes away, and the payment falls to about $2,539. On a 15-year term with 10% down, principal and interest jump to about $3,136 a month, but total interest falls to about $204,478.

The rate matters just as much. Here is the same home and down payment at three example rates:

These rates are examples only. The page shows Freddie Mac’s latest weekly average from its Primary Mortgage Market Survey for reference, but your rate will depend on your credit, loan type and lender.

What does your result mean?

Your result is the monthly amount you would likely pay to your servicer, before utilities and upkeep. Compare it with your take-home pay, not just your gross income, and make sure it still leaves room to save.

Several rules can change the real number:

• Mortgage insurance rules differ by loan. The Consumer Financial Protection Bureau (CFPB) explains that PMI protects the lender and is usually needed on conventional loans with less than 20% down. You can ask to cancel it at 80% of the original value, and it generally ends automatically at 78%.
• FHA loans work differently. HUD’s Mortgagee Letter 2023-05 sets a 1.75% upfront premium and an annual premium of 0.50% to 0.55% on most 30-year loans, often for the life of the loan.
• Taxes and insurance change. Reassessments and premium increases raise your escrow payment over time.
• Amortization shifts the mix. The CFPB notes that early payments go mostly to interest, and more goes to principal over time. Your total payment stays the same on a fixed-rate loan.

What are the most common mistakes?

Most surprises come from leaving out costs, not from the loan math. These are the errors we see most often:

• Using principal and interest only. Taxes and insurance can add hundreds of dollars a month.
• Using a national tax rate. Property taxes vary widely by state and county.
• Forgetting HOA dues. Condos and planned communities often charge them, and they count toward what lenders approve.
• Assuming the advertised rate. Advertised rates may assume strong credit, a large down payment or paid points.
• Ignoring mortgage insurance. With less than 20% down, PMI or FHA premiums are part of the cost.

Where should you go next?

Use the result to set a price range, then check it against your income and savings. Our home affordability calculator works the math in reverse, and the amortization schedule shows how each payment splits between principal and interest. For closing cash, see the closing cost calculator.

For the bigger picture, read how much house you can afford, how much down payment you need and when you can remove PMI.