Finance
Mortgage Calculator
Works a mortgage payment, where principal and interest is only part of it.
Result
Excludes HOA fees and mortgage insurance, which usually applies below 20% down and can add a significant monthly amount. Property tax and insurance are estimates until you have real quotes.
Get a Free Business AuditHow the calculation works
Principal and interest from the loan amount, rate and term, plus property taxes, homeowners insurance, mortgage insurance where it applies and any association dues. That total is the payment, and the loan portion alone understates it by a meaningful margin.
What moves the number
- Loan amount, rate and term.
- Property taxes for the specific parcel.
- Homeowners and mortgage insurance.
- Association dues.
Where this one goes wrong
Property taxes and insurance are escrowed and reassessed, which means the payment changes over time even on a fixed-rate loan, and a payment quoted at closing is not the payment in three years. Expect it to move. Getting the actual tax figure for the specific parcel rather than estimating from the price is the other correction, since assessments and exemptions differ between neighbouring properties.
Before you quote
- Include taxes, insurance and any dues in the payment figure.
- Get the actual property tax for that parcel.
- Expect the escrowed portion to change annually.
Where the rules come from
Questions
About this calculator
Why is my mortgage payment higher than the loan calculation?
Because principal and interest is only part of it. Property taxes, homeowners insurance, mortgage insurance and association dues are added, and in some areas the taxes alone rival the interest on the loan.
Does a fixed-rate payment really stay fixed?
The principal and interest does. The escrowed portion for taxes and insurance is reassessed and changes, usually annually, so a payment quoted at closing is not the payment in three years even on a fixed-rate loan.
Can mortgage insurance be removed?
On conventional loans it can generally be removed as equity builds, under rules worth confirming with the lender. On some government-backed programmes it is structured differently and may last the life of the loan.
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How to use this calculator
- Home price ($). Enter your own figure; the page starts at $420,000.
- Down payment ($). Enter your own figure; the page starts at $84,000.
- Interest rate (%). Enter your own figure; the page starts at 6.5%.
- Term in years. Enter your own figure; the page starts at 30.
- Annual property tax ($). Enter your own figure; the page starts at $4,800.
- Annual home insurance ($). Enter your own figure; the page starts at $1,800.
The result updates as you type, so you can try a figure, see what it does to total monthly payment, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Home price | $420,000 |
| Down payment | $84,000 |
| Interest rate | 6.5% |
| Term in years | 30 |
| Annual property tax | $4,800 |
| Annual home insurance | $1,800 |
What comes out
| Result | Value |
|---|---|
| Total monthly payment main result | $2,673.75 |
| Principal & interest | $2,123.75 |
| Tax & insurance per month | $550.00 |
| Total interest over the term | $428,549 |
A $336,000 loan (20.0% down) costs $2,673.75 a month all in, of which $550.00 is tax and insurance.
How sensitive the answer is
Holding everything else steady and changing only home price, this is what happens to total monthly payment. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Home price ($) | Total monthly payment |
|---|---|
| $210,000 | $1,346.41 |
| $315,000 | $2,010.08 |
| $420,000 example above | $2,673.75 |
| $630,000 | $4,001.09 |
| $840,000 | $5,328.43 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Home price ($)
- A money amount, starting at $420,000.
- Down payment ($)
- A money amount, starting at $84,000.
- Interest rate (%)
- A percentage, between 0 and 100, starting at 6.5%.
- Term in years
- A number, between 0 and 50, starting at 30.
- Annual property tax ($)
- A money amount, starting at $4,800.
- Annual home insurance ($)
- A money amount, starting at $1,800.
What the results tell you
| Result | What it is |
|---|---|
| Total monthly payment | The headline result. A money figure. |
| Principal & interest | A money figure. |
| Tax & insurance per month | A money figure. |
| Total interest over the term | A money figure. |
Rates and terms move
Loan and interest figures assume the rate and term you enter hold for the whole period. Variable rates, fees rolled into the balance and early-repayment terms all change the real cost.
Keep going
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