What this mortgage calculator includes
A mortgage payment is more than the loan repayment. Lenders usually talk about PITI: principal, interest, taxes and insurance. This calculator adds all four, so you see a realistic monthly figure instead of only the loan part.
Principal and interest are worked out with the standard amortisation formula. Property tax is a yearly percentage of the home value, and home insurance is a yearly amount, both divided by 12.
How to use it
- Enter the home price and your down payment.
- Enter the mortgage interest rate and the term in years.
- Add the yearly property tax rate and your yearly home insurance cost.
- Press Calculate to see the total monthly payment, the loan amount, total interest and the yearly schedule.
What is left out
Private mortgage insurance (PMI) is not included. Lenders often require it on conventional loans when the down payment is under 20%, so a bigger down payment can lower your monthly cost. Homeowners association fees, closing costs, maintenance and rate changes on adjustable loans are also not included.
Example: a 300,000 loan at 6.5% over 30 years costs roughly 1,896 a month in principal and interest and about 382,600 in interest over the full term.
How much house can you afford?
A commonly cited guideline is the 28/36 rule: keep housing costs around 28% of gross monthly income and total debt payments around 36%. Lenders use their own limits, so treat it as a starting point and check your budget as well, including savings for repairs and emergencies.
Ways to pay less interest
- Choose a shorter term. A 15-year loan has a higher payment but far less interest than a 30-year loan.
- Make a bigger down payment to reduce the amount you borrow.
- Pay a little extra principal each month, if your loan allows it without a penalty.
- Compare rates from several lenders, and compare the APR, not only the headline rate.
How the loan term changes the payment (300,000 loan at 6.5%)
| Term | Monthly principal and interest | Total interest |
|---|---|---|
| 30 years | 1,896 | about 382,600 |
| 20 years | 2,237 | about 236,800 |
| 15 years | 2,613 | about 170,000 |
Frequently Asked Questions
What is included in a mortgage payment?
Principal and interest on the loan, plus property tax and home insurance in this calculator. Some loans also include PMI or HOA fees.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage costs much less in total interest but has a higher monthly payment. A 30-year mortgage is easier on the monthly budget but costs more overall.
How much should I put down?
Many buyers aim for 20% to avoid PMI on conventional loans, but smaller down payments are common. Compare the monthly cost of each option.
Does this show my interest rate or APR?
You enter the rate. The APR also includes some fees, so ask your lender for both.
Can extra payments shorten my mortgage?
Yes. Extra principal reduces the balance faster, which cuts the interest and the time to pay off.
Is my data stored?
No. The calculation runs in your browser, so the numbers you enter are not sent to our server.