Mortgage Calculator
Estimate your monthly mortgage payment, including taxes, insurance, PMI, and HOA fees. Change the numbers to see how different scenarios affect your payment and long-term loan costs.
Loan Summary
How Your Monthly Payment Is Calculated
Monthly Escrow is the amount set aside each month to help pay your annual property taxes and homeowners insurance when those bills come due.
Payment Breakdown
Amortization Schedule
| Year | Principal Paid | Interest Paid | Ending Balance |
|---|---|---|---|
| Calculate your mortgage to view the annual amortization schedule. | |||
| Payment | Payment Amount | Principal | Interest | Balance |
|---|---|---|---|---|
| Calculate your mortgage to view the monthly schedule. | ||||
Frequently Asked Questions
What is included in a monthly mortgage payment?
Your monthly housing payment may include more than just the mortgage itself. The principal reduces the amount you owe, while interest is the cost of borrowing the money. Your payment may also include property taxes and homeowners insurance, which are often collected monthly through an escrow account. Depending on your loan and property, you may also pay private mortgage insurance (PMI) and homeowners association (HOA) fees.
The calculator above shows these costs separately so you can see how each one affects your estimated total monthly housing payment.
What is mortgage escrow?
Mortgage escrow is money collected as part of your monthly mortgage payment to help cover certain property-related expenses, usually property taxes and homeowners insurance. Your mortgage servicer holds this money in an escrow account and uses it to pay those bills when they come due.
For example, if your annual property taxes are $4,800 and homeowners insurance is $1,800, the calculator estimates a monthly escrow amount of $550. Your actual escrow payment may differ because taxes and insurance costs can change over time.
When is private mortgage insurance (PMI) required?
Private mortgage insurance (PMI) is commonly required on conventional mortgages when your down payment is less than 20% of the home’s purchase price. PMI protects the lender if the borrower stops making payments; it does not protect the homeowner.
The amount you pay can vary based on factors such as your down payment, credit profile, and loan terms. PMI may eventually be removed once you have built sufficient equity in the home, subject to your loan requirements and applicable rules.
The calculator lets you enter a monthly PMI amount so you can see how it affects your estimated total monthly housing payment.
What does loan-to-value (LTV) mean?
Loan-to-value, or LTV, compares the amount you borrow with the value or purchase price of the home. It is expressed as a percentage.
For example, if you purchase a $400,000 home with an $80,000 down payment, you would borrow $320,000. That gives you an LTV of 80%.
Generally, a larger down payment results in a lower LTV. LTV can affect your loan options, interest rate, and whether private mortgage insurance (PMI) may be required.
The calculator automatically updates your estimated loan amount and LTV when you change the home price or down payment.
Why does so much of my early mortgage payment go toward interest?
Most mortgages are amortized, which means each payment is divided between principal and interest. Early in the loan, your outstanding balance is at its highest, so more of each payment goes toward interest.
As you pay down the balance, the amount of interest charged each month gradually decreases. More of your payment then begins going toward principal.
The Principal vs. Interest Crossover section above estimates when you reach the point where more of your monthly principal-and-interest payment goes toward principal than interest.
Does this mortgage calculator include closing costs?
No. The calculator estimates your mortgage payment and ongoing housing costs, but it does not include closing costs.
Closing costs are expenses associated with obtaining the mortgage and completing the home purchase. They may include lender fees, appraisal fees, title services, recording fees, prepaid taxes and insurance, and other charges.
Because closing costs vary considerably by lender, loan type, property, and location, they should be considered separately when determining how much cash you will need to purchase a home.
Are the property tax and homeowners insurance estimates exact?
No. Property taxes and homeowners insurance can vary significantly based on the home’s location, assessed value, available exemptions, insurance coverage, and other factors.
For the most useful estimate, enter the annual property tax and homeowners insurance amounts you expect to pay for the property. The calculator divides those annual costs by 12 and includes them in the estimated monthly payment.
Keep in mind that both expenses can change over time, so your actual monthly housing payment may increase or decrease even if your mortgage principal and interest payment remains the same.
Can I compare 15-, 20-, and 30-year mortgages?
Yes. Change the loan term in the calculator and recalculate to see how different terms affect your monthly payment, total interest, and total amount paid.
A shorter loan term generally means a higher monthly payment but less interest paid over the life of the loan. A longer term generally lowers the monthly payment but increases the total interest paid.
Try several loan terms using the same home price, down payment, and interest rate. This can help you see the tradeoff between what fits comfortably into your monthly budget and what the loan may cost over time.
What happens if I make extra principal payments?
Making extra payments toward principal can reduce your loan balance faster and lower the total interest you pay over the life of the mortgage. Depending on how much extra you pay, it may also allow you to pay off the mortgage earlier.
For example, adding even a modest amount to your principal each month can make a noticeable difference over a long-term mortgage because future interest is calculated on a smaller remaining balance.
This calculator currently assumes you make the scheduled monthly payments and does not include extra principal payments in its amortization calculations. If you plan to pay extra, check with your mortgage servicer to make sure the additional amount is applied to principal.
Is this mortgage calculator a loan quote?
No. This calculator is an educational planning tool designed to help you estimate mortgage payments and understand how different loan costs affect your monthly housing expense.
Your actual interest rate, monthly payment, taxes, insurance, PMI, closing costs, and other loan expenses will depend on your lender, loan program, credit profile, property, and other factors.
Use the calculator to explore different scenarios and prepare questions for a lender, but always rely on the official loan documents and disclosures from your lender when making a borrowing decision.