Mortgage Calculator

On a $400,000 home with 20% down at a 6.8% interest rate over 30 years, your principal-and-interest payment is roughly $2,086 a month — but your actual monthly cost is almost always higher once property tax, homeowner’s insurance, and possibly PMI or an HOA fee are added. This calculator computes the full payment, not just the loan math, and breaks down exactly where every dollar goes.

How the Mortgage Calculator Works

Enter the home price, down payment, loan term, and interest rate, and the calculator returns your monthly payment using the standard amortization formula lenders use — the same math behind every conventional mortgage quote. Below that, it adds your property tax, insurance, PMI, and HOA dues to show the true monthly out-of-pocket cost, then generates a full amortization schedule so you can see exactly how much of each payment goes to principal versus interest, month by month, for the life of the loan.

Early payments are interest-heavy by design — that’s not a lender trick, it’s simple math: interest is charged on the remaining balance, which is largest at the start. If you want to see that principal-versus-interest split in more detail across the entire loan term, the standalone Amortization Calculator gives you the same schedule with more room to experiment with extra payments.

Principal, Interest, Taxes, Insurance — and What Each One Actually Depends On

The five components of a typical payment, often abbreviated PITI plus HOA, don’t move independently:

Principal and interest are fixed once you lock a rate and term — they depend only on loan amount, rate, and years.
Property tax is set by your local government, typically 0.5% to 2%+ of assessed value per year depending on state, and is usually collected monthly through an escrow account rather than billed once annually.
Homeowner’s insurance depends on the property’s location, age, and rebuild cost, and can vary significantly by region — coastal and wildfire-prone areas often see it double or triple the national average.
PMI only applies below 20% down and is calculated on your loan balance, not your home price — see the exact math in the Down Payment Calculator.
HOA dues, when applicable, are set by the association and unrelated to your loan terms entirely.

Because taxes and insurance vary so much by location, two identical loans on identically priced homes can have monthly payments that differ by several hundred dollars. Always use your specific property’s tax rate and an actual insurance quote once you’re seriously evaluating an offer, rather than relying on national averages.

How Much House Can You Actually Afford?

A mortgage payment you can qualify for and a mortgage payment that fits your budget aren’t always the same number. Lenders typically approve loans up to 36-43% of your gross monthly income in total debt, but that ceiling doesn’t account for your actual spending habits, savings goals, or how comfortable you want to feel month to month. Work backward from your income and existing debts using the House Affordability Calculator to find a realistic target price before you fall in love with a home at the edge of what a lender will approve.

Down Payment Size Changes More Than the Loan Amount

Beyond simply reducing what you borrow, your down payment percentage often determines your interest rate tier and whether PMI applies at all. Crossing from 10% down to 20% down can unlock a meaningfully better rate on top of eliminating mortgage insurance — an effect that compounds over 30 years into tens of thousands of dollars. Compare down payment scenarios directly in the Down Payment Calculator before deciding how much cash to put toward closing versus keeping in reserve.

15-Year vs. 30-Year: The Trade-Off Most Calculators Don’t Show Clearly

A 15-year mortgage typically carries a lower interest rate than a 30-year loan on the same property, and because the loan amortizes twice as fast, total interest paid over the life of the loan is often less than half. The trade-off is a significantly higher required monthly payment — often 40-50% higher for the same loan amount. Run both terms through this calculator with identical loan amounts and rates side by side to see the exact dollar trade-off for your situation, then check the full interest breakdown in the Amortization Calculator.

Already Have a Mortgage? Two Different Questions to Ask

If you’re not shopping for a new home but managing an existing loan, this calculator answers a different question than the one you need. If your goal is paying off your current mortgage faster with extra payments, use the Mortgage Payoff Calculator, which shows exactly how many months and how much interest an extra monthly payment saves you. If your goal is replacing your current loan with a new one at a better rate, the Refinance Calculator compares your current payment against a new loan plus closing costs to find your break-even point.

Buying an Investment Property Instead?

Everything above assumes you’re financing a home you’ll live in. If you’re evaluating a rental instead, the math changes substantially — rental income, vacancy rate, and operating expenses all factor into whether the property cash-flows. The Rental Property Calculator is built specifically for that scenario and shouldn’t be confused with a standard owner-occupied mortgage calculation.

Low Down Payment and Government-Backed Programs

If a 20% down payment isn’t realistic on your timeline, FHA loans allow down payments as low as 3.5% with more flexible credit requirements — full numbers are in the FHA Loan Calculator. Eligible veterans and active-duty service members should also check the VA Mortgage