Home Mortgage Calculator
Use this free home mortgage calculator to see exactly what a house will cost you each month. Enter the home price, down payment, interest rate and loan term, and it works out the monthly payment — principal and interest, property tax, home insurance, PMI and HOA — plus the total interest over the life of the loan, the payoff date, and a full amortization schedule.
Loan balance over time
Amortization schedule (yearly)
| Year | Interest paid | Principal paid | Balance left |
|---|
How it works
A mortgage payment has two parts that never change for a fixed-rate loan: the interest charged on the balance, and the principal that pays the balance down. The monthly principal-and-interest payment comes from the standard amortization formula:
M = P × r ÷ (1 − (1 + r)−n)
Here P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. On top of that, most homeowners pay property tax and home insurance monthly into escrow, plus PMI if the down payment is under 20%, and HOA dues if the home has them. The calculator adds all of those to the principal-and-interest payment to give the true monthly cost.
Interest is charged on the balance, so early payments are mostly interest and later payments are mostly principal. That is why a larger down payment or a shorter term cuts the total interest so much: both shrink the balance that interest is charged on, and the shorter term gives interest fewer years to add up.
Worked example
A $400,000 home with a 20% down payment ($80,000), a 6.5% annual rate over 30 years, $4,800 a year in property tax and $1,800 a year in home insurance.
Step 1: Loan amount — $400,000 − $80,000 = $320,000.
Step 2: Monthly principal & interest — $320,000 × (0.065 ÷ 12) ÷ (1 − (1 + 0.065 ÷ 12)−360) = $2,022.62.
Step 3: Tax and insurance — $4,800 ÷ 12 = $400 a month for tax; $1,800 ÷ 12 = $150 a month for insurance.
Step 4: Total monthly payment — $2,022.62 + $400 + $150 = $2,572.62.
Step 5: Total interest — $2,022.62 × 360 − $320,000 = $408,142.36.
Enter the same numbers in the calculator and it gives exactly the same result: $2,572.62 a month, $408,142 of interest over 30 years. After 10 years the balance is $271,284; after 20 years it is $178,129. On a 15-year term instead, the payment rises to $2,787.54 a month but the total interest falls to $181,758.
FAQ
How much house can I afford?
A common rule is that the total monthly housing payment should stay under about 28% of your gross monthly income, and all debts combined under about 36%. Enter your numbers above and compare the monthly payment with your income — if it is over that range, a lower price, a bigger down payment or a longer term brings it down.
What is PMI, and when do I pay it?
PMI (private mortgage insurance) is usually required when the down payment is under 20% of the home price. It protects the lender, not you, and it is added to the monthly payment. Once the loan balance falls to 80% of the home's value you can usually ask to have it removed, which is one more reason a bigger down payment pays off.
Is a 15-year mortgage better than a 30-year one?
A 15-year term costs more each month but far less in total interest. On a $320,000 loan at 6.5%, the 30-year payment is $2,022.62 a month with $408,142 of interest; the 15-year payment is $2,787.54 a month with $181,758 of interest — a saving of about $226,384. The 30-year term is the safer choice if the higher payment would stretch your budget.
Does the calculator include taxes and insurance?
Yes. The monthly payment shown includes principal and interest, property tax, home insurance, PMI and HOA dues. Lenders usually collect tax and insurance monthly into an escrow account and pay them for you, so the total here is the number that actually leaves your bank account each month.
How do extra payments change the payoff?
Any extra money goes straight to principal, which cuts every interest charge after it. Even one extra monthly payment a year on a 30-year loan typically pays it off several years early and saves tens of thousands in interest. The amortization table above shows how slowly the balance falls in the early years — that is exactly where extra payments help most.
Related tools
- Biweekly Mortgage Calculator — see how biweekly payments shorten a mortgage and save interest.
- ARM Mortgage Calculator — work out payments on an adjustable-rate mortgage.
- Mortgage Points Calculator — see if buying mortgage points pays off, and when.
- Refinance Calculator — compare your current mortgage with a refinance and check savings.
- PMI Calculator — find your LTV, down payment and monthly mortgage insurance.
- Escrow Calculator — work out your monthly escrow for taxes and insurance.