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Mortgage Calculator

Estimate a home-loan payment, including taxes and insurance if you know them.

How the calculator works

The loan amount is the price minus the down payment, and the share you put down is displayed as a percentage because lenders care about it: below 20% in many markets, extra mortgage insurance usually applies. The monthly principal-and-interest figure comes from the standard amortization formula over the term in months. Annual tax and insurance, when provided, are divided by twelve and added to the payment. Total interest is the sum of all principal-and-interest payments minus the loan amount, and the total cost row accumulates every monthly payment across the term — often a sobering figure on 30-year loans, and a useful honest baseline when weighing offers.

Formula

Loan amount = Price − Down payment
Monthly P&I = L × r × (1 + r)n ÷ ((1 + r)n − 1)

Where:

  • L — the loan amount
  • r — the monthly interest rate (annual ÷ 12 ÷ 100)
  • n — the number of monthly payments (years × 12)
  • Tax & insurance — annual figures ÷ 12, added to the payment

Example

A $300,000 home with a $60,000 down payment leaves a $240,000 loan — a 20% down share. At 6% over 30 years (360 payments), the monthly principal-and-interest payment is about $1,438.92, and total interest over the term reaches roughly $278,011 — more than the loan itself. Adding a $3,000 annual property tax and $1,200 annual insurance brings the realistic monthly outlay to about $1,788.92. Shortening to 15 years at the same rate raises the payment near $2,026 but cuts total interest by more than half.

Frequently Asked Questions

What down payment should I aim for?
Twenty percent is the classic target because it usually removes mortgage-insurance requirements and earns better rates. Many lenders accept far less, sometimes 3–5%, in exchange for higher monthly costs — the calculator makes that trade-off visible.
Why is the total interest so large?
Interest compounds monthly on a large balance for a long time. On a 30-year loan it is normal for cumulative interest to approach or exceed the original loan. Extra principal payments early in the term attack exactly this cost.
Does this include closing costs or HOA fees?
No. Closing costs are one-time fees paid at purchase, and homeowners-association dues are separate recurring amounts. Neither is part of the loan payment, so add them to your budget separately.
Should I choose a 15-year or 30-year term?
A 15-year term costs much less interest but demands a higher monthly payment; 30 years maximizes flexibility. A common strategy is taking the 30-year loan and voluntarily paying the 15-year amount — the calculator shows both payments so you can plan that gap.

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