Real estate & rental
Real Estate House Payment Calculator
Works a monthly house payment, where principal and interest is the smaller question.
Result
An arithmetic tool, not financial or legal advice. Lending criteria, tax treatment and tenancy law all vary by state and change regularly. Confirm anything that affects a decision with a lender, an accountant or an attorney. Property taxes and insurance both rise over time, often faster than general inflation, so an escrow figure accurate today will not be in five years. Mortgage insurance usually drops off once equity reaches 20%, but the rules differ between loan types and some require a refinance.
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 full figure is the payment, and the loan payment alone routinely understates it by a meaningful margin, which is how buyers end up stretched by a house they thought they could afford.
What moves the number
- Loan amount, rate and term.
- Property taxes, which vary enormously by jurisdiction.
- Mortgage insurance, which depends on the loan and down payment.
- Association dues, which can be substantial.
Where this one goes wrong
Property taxes and insurance are the lines that move most between properties and the lines buyers consider least, and in some jurisdictions they exceed the interest on the loan. Get the actual tax figure for the specific parcel rather than estimating from the price, since assessments and exemptions differ between neighbouring properties. Payments held in escrow also change annually as taxes and insurance are reassessed, so a payment quoted at closing is not fixed even on a fixed-rate loan.
Before you quote
- Get the actual property tax figure for that parcel.
- Include mortgage insurance and association dues.
- Expect the escrowed portion to change annually.
Where the rules come from
Questions
About this calculator
Why is my payment higher than the loan calculator said?
Because principal and interest is only part of it. Property taxes, homeowners insurance, mortgage insurance and association dues are added, and in some jurisdictions the taxes alone rival the interest. The loan payment is the smaller question.
Does a fixed-rate payment stay the same?
The principal and interest does; the escrowed portion for taxes and insurance is reassessed and changes, usually annually. A payment quoted at closing therefore moves over time even on a fixed-rate loan, sometimes noticeably.
Can I estimate property tax from the price?
Poorly. Assessments, assessment ratios and exemptions differ between neighbouring properties, and the figure for that specific parcel is public and worth looking up. Estimating from the price is where payment surprises most often originate.
The formula
payment = P x i / (1 - (1 + i)^-n), plus monthly taxes, insurance, HOA and any mortgage insurance
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How to use this calculator
- Purchase price ($). Enter your own figure; the page starts at $420,000.
- Down payment (%). Enter your own figure; the page starts at 20%.
- Interest rate (%). Enter your own figure; the page starts at 6.8%.
- Term (years). Enter your own figure; the page starts at 30.
- Property taxes per year ($). Enter your own figure; the page starts at $5,400.
- Home insurance per year ($). 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 |
|---|---|
| Purchase price | $420,000 |
| Down payment | 20% |
| Interest rate | 6.8% |
| Term (years) | 30 |
| Property taxes per year | $5,400 |
| Home insurance per year | $1,800 |
| HOA or association dues per month | $0 |
| Mortgage insurance rate | 0.6% |
What comes out
| Result | Value |
|---|---|
| Total monthly payment main result | $2,790.47 |
| Principal and interest | $2,190.47 |
| Taxes and insurance | $600.00 |
| Mortgage insurance | $0.00 |
| Loan amount | $336,000 |
The payment is $2,790.47 a month: $2,190.47 of principal and interest plus $600.00 of taxes and insurance.
How sensitive the answer is
Holding everything else steady and changing only purchase price, this is what happens to total monthly payment. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Purchase price ($) | Total monthly payment |
|---|---|
| $210,000 | $1,695.23 |
| $315,000 | $2,242.85 |
| $420,000 example above | $2,790.47 |
| $630,000 | $3,885.70 |
| $840,000 | $4,980.94 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Purchase price ($)
- A money amount, starting at $420,000.
- Down payment (%)
- A percentage, between 0 and 100, starting at 20%.
- Interest rate (%)
- A percentage, between 0 and 20, starting at 6.8%.
- Term (years)
- A number, between 0 and 50, starting at 30.
- Property taxes per year ($)
- A money amount, starting at $5,400.
- Home insurance per year ($)
- A money amount, starting at $1,800.
- HOA or association dues per month ($)
- A money amount, starting at $0.
- Mortgage insurance rate (%)
- Usually applies below 20% down.
What the results tell you
| Result | What it is |
|---|---|
| Total monthly payment | The headline result. A money figure. |
| Principal and interest | A money figure. |
| Taxes and insurance | A money figure. |
| Mortgage insurance | A money figure. |
| Loan amount | A money figure. |
What is not in this number
Property figures here exclude the costs that decide whether a deal works: vacancy, maintenance, management, capital expenditure and the transaction costs at both ends. A return that looks strong before those frequently does not survive them.
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