How to use this calculator
Enter the details of the home and the loan. The results update as you type.
- Home price. The purchase price of the property.
- Down payment. The cash you pay up front. The loan amount is the home price minus the down payment. A $300,000 home with $60,000 down needs a $240,000 loan.
- Interest rate. The yearly rate on the loan, as a percentage.
- Loan term. The number of years you have to repay.
- Yearly property tax and yearly home insurance. Enter the annual bills. The calculator divides each by 12. A $3,600 yearly tax bill adds $300 a month.
- Monthly HOA fee. Homeowners association dues, if the property has them. Enter 0 if it does not.
The main result is your total monthly payment. Below it you see the principal and interest portion, the loan amount, total interest, the total of all payments, a bar that splits the monthly payment into its parts, and a yearly amortization table.
Worked example
These are the starting values in the calculator above and the results they give. Change any input to see your own numbers.
- Home price
- $400,000
- Down payment
- $80,000
- Interest rate
- 6.5%
- Loan term
- 30 years
- Property tax per year
- $4,800
- Home insurance per year
- $1,500
- HOA fee per month
- $0
- Monthly payment
- $2,547.62
- Principal & interest
- $2,022.62
- Loan amount
- $320,000
- Down payment
- 20%
- Total interest
- $408,142
- Total of all payments
- $917,142
How a mortgage payment is calculated
The principal and interest part uses the standard formula for a fixed-rate loan. Principal is the amount you borrow. Interest is the lender's charge for lending it. The formula sets one payment that stays the same every month and brings the balance to zero by the last payment.
Each month, interest is charged on the balance you still owe. The rest of the payment reduces the balance. Early in the loan the balance is large, so most of the payment is interest. Later, more of it goes to principal. This pattern is called amortization.
Property tax, insurance and HOA fees are then added on top. They do not reduce your loan. They are costs of owning the home that are often collected with the mortgage payment.
M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)- M
- monthly principal and interest payment
- P
- loan amount (home price − down payment)
- r
- monthly interest rate (yearly rate ÷ 12)
- n
- number of monthly payments (years × 12)
What changes your payment
- Down payment. A larger down payment means a smaller loan, a lower payment and less total interest.
- Interest rate. Even a small change in rate moves the payment and has a large effect on total interest over a long term.
- Loan term. A longer term lowers the monthly payment but raises total interest. A shorter term does the opposite.
- Tax, insurance and HOA. These can change over time even when the loan payment is fixed, so the total monthly cost may rise.
The results are estimates for a fixed-rate loan. They do not include mortgage insurance, closing costs, maintenance or utilities. To see how much home fits your income, try the home affordability calculator.
Frequently asked questions
What is included in a monthly mortgage payment?
A full monthly payment usually has four parts: principal, interest, property tax and home insurance. Some homes also have HOA fees. Principal and interest repay the loan itself. Tax and insurance are costs of owning the home that many lenders collect each month and pay on your behalf. This calculator shows each part separately so you can see where the money goes.
How does the down payment affect my mortgage?
The down payment is subtracted from the home price to get the loan amount. A bigger down payment means you borrow less, so the monthly payment and the total interest are both lower. A smaller down payment keeps more cash in your pocket today but raises the cost of the loan over time. Try a few amounts to compare.
Is a shorter loan term better than a longer one?
Neither is better for everyone. A shorter term has a higher monthly payment, but you pay far less interest in total and own the home sooner. A longer term has a lower monthly payment, which leaves more room in a budget, but costs more in interest overall. Enter both terms in the calculator to see the trade-off in dollars.
Why is so much of my early payment interest?
Interest is charged each month on the balance you still owe. At the start, the balance is at its highest, so the interest charge is large and little of the payment is left to reduce principal. As the balance falls, the interest charge shrinks and more of each payment goes to principal. The yearly amortization table shows this shift.
Does this calculator include closing costs or mortgage insurance?
No. It covers principal, interest, property tax, home insurance and HOA fees. Closing costs are one-time fees paid when the loan starts. Mortgage insurance is an extra monthly charge some lenders require when the down payment is small. Both vary by lender and location, so add them to your own budget separately.
This calculator gives estimates for education only. It does not know your full situation and is not financial advice. Reviewed and updated November 15, 2026.