Mortgage Calculator
Estimate your monthly mortgage payment, principal and interest, property taxes, homeowners insurance, and total loan cost.
Calculate Your Mortgage Payment
Enter your home price, down payment, interest rate, and other estimated costs to calculate your monthly mortgage payment.
What Is a Mortgage Calculator?
A mortgage calculator helps estimate the monthly cost of financing a home. By entering the home price, down payment, interest rate, and loan term, you can get an estimate of your principal and interest payment.
This calculator also allows you to include estimated property taxes and homeowners insurance to get a broader estimate of your monthly housing payment.
How Does a Mortgage Calculator Work?
The calculator first subtracts the down payment from the home price to determine the estimated mortgage loan amount.
It then uses the loan amount, annual interest rate, and repayment term to estimate the monthly principal and interest payment.
Estimated monthly property taxes and homeowners insurance are then added to provide an estimated total monthly payment.
What Does Your Mortgage Payment Include?
Principal
The portion of your payment that reduces the amount you borrowed.
Interest
The cost charged by the lender for borrowing the money.
Property Taxes
Local property taxes that may be collected as part of your monthly housing payment.
Homeowners Insurance
Insurance costs that may protect your home and property against covered risks.
Down Payment
The amount you pay toward the home's purchase price upfront.
Loan Term
The length of time used to repay the mortgage.
Why Does the Down Payment Matter?
A larger down payment generally means borrowing less money. This can reduce the amount of principal and interest you pay each month.
A down payment can also affect the overall cost of the mortgage and may affect whether mortgage insurance is required, depending on the loan program and lender.
30-Year vs. 15-Year Mortgage
A 30-year mortgage generally spreads repayment over a longer period, which can result in lower monthly principal and interest payments.
A 15-year mortgage generally has higher monthly payments but can result in less total interest over the life of the loan when other factors are the same.
The right loan term depends on your finances, budget, goals, and the loan terms available to you.
Tips for Planning a Mortgage
- Compare mortgage rates from multiple lenders.
- Consider the total monthly housing cost, not just principal and interest.
- Include property taxes and homeowners insurance when planning your budget.
- Consider closing costs and other upfront expenses.
- Review the complete loan estimate before choosing a mortgage.
- Make sure the monthly payment fits comfortably within your overall budget.
Frequently Asked Questions
How much is a mortgage payment on a $400,000 home?
The monthly payment depends on your down payment, interest rate, loan term, property taxes, insurance, and other costs. Enter your numbers into the calculator above to get an estimate.
Does the mortgage calculator include property taxes?
Yes. You can enter your estimated annual property tax to include it in the estimated monthly payment.
Does the calculator include homeowners insurance?
Yes. You can enter your estimated annual homeowners insurance cost.
Is a 30-year mortgage cheaper than a 15-year mortgage?
A 30-year mortgage may have a lower monthly payment, but a 15-year mortgage can result in less total interest when the other loan terms are the same.
Does this calculator include PMI?
No. This basic calculator does not automatically calculate private mortgage insurance. PMI can vary based on the lender, loan program, down payment, and other factors.
Does this calculator include closing costs?
No. Closing costs are not included in the estimated monthly payment.
Is this mortgage calculator free?
Yes. The EverydaySolved Mortgage Calculator is free to use.