Mortgage Calculator
Calculate mortgage payments including property tax and insurance
Enter values above to calculate
How to Use
- Enter the home purchase price.
- Enter your down payment as a dollar amount or percentage.
- Enter the interest rate, loan term (typically 15 or 30 years).
- Optionally enter annual property tax rate and monthly insurance cost.
- Click 'Calculate' to see your complete monthly payment breakdown.
About Mortgage Calculation
What is a Mortgage?
A mortgage is a loan used to purchase real estate. The property itself serves as collateral. Monthly payments consist of principal (reducing your loan balance) and interest (cost of borrowing). Typical terms are 15 or 30 years, with fixed or adjustable interest rates.
Down Payment Impact
A larger down payment reduces your loan amount and monthly payments. Putting down 20% or more typically allows you to avoid Private Mortgage Insurance (PMI). A 10% down payment on a $400,000 home means borrowing $360,000 vs $320,000 with a 20% down payment.
Total Cost of Homeownership
Beyond principal and interest, homeowners pay property taxes (typically 0.5%–2.5% of home value annually), homeowner's insurance ($100–$200/month), and possibly HOA fees and maintenance. These can add $500–$1,500+ per month to your housing costs.
Fixed vs. Adjustable Rate
A fixed-rate mortgage keeps the same interest rate for the entire loan term, providing predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate that changes periodically. Fixed rates offer stability; ARMs may be beneficial if rates drop or you plan to sell within a few years.
Key Features
- Calculates principal and interest payment with standard amortization formula
- Includes property tax and insurance for total monthly cost
- Shows loan amount automatically based on home price minus down payment
- Supports percentage or dollar amount down payment input