Mortgage Calculator

For a fixed-rate loan, monthly principal and interest is P × r / (1 − (1 + r)^−n), where P is price minus down payment, r is the annual percentage divided by 1,200, and n is the entered term in months. At zero interest the payment is P/n. Annual property tax and insurance are divided by 12 and added.

A $360,000 home with $72,000 down means $288,000 financed. At 6.75% for 30 years, principal and interest is $1,867.96 per month. Adding $4,800 annual tax and $1,560 annual insurance gives $2,397.96 per month.

Separate principal and interest from escrow costs. Compare the same loan at different rates or terms; a smaller payment over a longer term usually means more total interest.

PMI, HOA dues, closing costs, lender fees, adjustable rates and future changes in taxes or insurance are not included. This is not a lender quote or an affordability approval.

A mortgage payment is easier to understand when you separate the money borrowed from the cost of owning the home. Enter the purchase price first, then your down payment as a dollar amount. The calculator subtracts that payment to find the financed principal. If a listing costs $360,000 and you plan to put down 20%, enter $72,000 in the down-payment box, not 20. Those entries describe the same purchase in different units.

Use the annual interest rate for the fixed-rate loan you want to examine. Enter the term in months (360 for 30 years), and enter property tax and homeowners insurance as annual amounts. A monthly insurance quote needs to be multiplied by 12 before entering it here. Using $130 instead of $1,560 would understate that expense. These small unit mistakes can make a payment look comfortably affordable when the actual monthly bill would be quite different.

Keep a note of your first set of inputs before trying another loan. Changing only the interest rate shows what that rate change does to principal and interest. Changing only the term shows the trade-off between monthly payment and repayment time. Changing the home price, deposit, rate and term together makes it much harder to tell why the result moved. The tax and insurance estimates should stay consistent when comparing financing for the same property.

For a simple arithmetic check, a $150,000 home with $30,000 down leaves $120,000 financed. At an illustrative zero interest rate over 30 years, principal repayment alone is $333.33 a month when rounded. This is a formula check, not a suggestion that such a mortgage is available. Any entered tax and insurance still sit on top of that amount. Internal calculations use unrounded payments, so multiplying the displayed cents can introduce a small difference.

The combined monthly result includes the costs entered in this form, not every expense associated with the property. Keep a separate allowance for repairs, utilities and any homeowners association dues. Private mortgage insurance may also apply to a particular loan, but it is not calculated here. Ask the lender for a written breakdown rather than treating the estimated monthly total as a complete quote. A home inspection or insurance quote may uncover costs that the listing does not show.

Upfront expenses need their own budget too. A down payment is not the same thing as closing costs, and choosing a larger deposit can leave less cash for moving or repairs. The loan's total-paid figure concerns principal and interest rather than decades of future property taxes and insurance. Those expenses can change even on a fixed-rate mortgage. Keeping loan costs and ownership costs separate makes a comparison more useful than one large number with unclear ingredients.

First, check that both calculations use the same financed amount, rate and term. Then compare what each total includes. A lender may include mortgage insurance, an escrow adjustment or charges that are absent here. An APR can incorporate certain borrowing costs; it is not always interchangeable with the interest rate used to calculate scheduled payments. If you enter an APR where the contract's interest rate belongs, the payment comparison may no longer be like for like.

Finally, look at timing. Your first payment date, closing-date interest and the lender's rounding practices can affect a real repayment schedule. This tool assumes a regular monthly, fixed-rate arrangement. It does not model an adjustable-rate reset or an extra-payment strategy. Use the estimate to prepare questions and compare plausible options, then reconcile it with the lender's Loan Estimate. A difference is a reason to inspect the assumptions, not automatically evidence that either calculation is wrong.