Mortgage Calculator
Estimate your monthly mortgage payment, total interest, and total loan cost from the home price, down payment, interest rate, loan term, property taxes, and homeowners insurance.
Calculate your mortgage payment
Choose a currency and enter the loan details below. Property tax and homeowners insurance are optional and are added to the estimated monthly housing payment when provided.
Your estimated monthly payment
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| Home price | — |
| Down payment | — |
| Loan amount | — |
| Interest rate | — |
| Loan term | — |
| Total principal & interest | — |
| Total interest | — |
Step-by-step calculation
What is a mortgage payment?
A mortgage payment is a regular payment made toward a home loan. For a typical fixed-rate mortgage, the principal-and-interest portion is determined by the amount borrowed, the interest rate, and the number of payments in the loan term.
The amount you actually budget for housing can be higher than principal and interest because property taxes, homeowners insurance, mortgage insurance, association fees, maintenance, and other costs may also apply. The exact costs vary by property, location, loan, lender, and borrower.
How is a mortgage payment calculated?
First, the down payment is subtracted from the home price to determine the loan principal. The monthly principal-and-interest payment is then calculated from the loan principal, monthly interest rate, and total number of monthly payments.
M = monthly principal-and-interest payment
P = loan principal
r = monthly interest rate expressed as a decimal
n = total number of monthly payments
For a fixed-rate, fully amortizing loan, the combined principal-and-interest payment is generally structured to repay the loan over the stated term. The share going to interest is usually larger earlier in the schedule, while more of each payment goes toward principal as the balance declines.
Mortgage calculator example
Suppose a home costs 400,000 units of the selected currency and the down payment is 80,000. The estimated loan amount is:
The calculator then applies the selected interest rate and loan term to estimate the monthly principal-and-interest payment. If annual property tax and homeowners insurance are entered, one-twelfth of each annual amount is added to the monthly housing estimate.
What affects your monthly mortgage payment?
- Loan amount: Borrowing more generally increases the required payment.
- Interest rate: A higher rate generally increases both the monthly payment and total interest for the same loan amount and term.
- Loan term: A longer term can reduce the scheduled monthly principal-and-interest payment but can increase total interest paid.
- Down payment: A larger down payment reduces the amount borrowed.
- Property taxes and insurance: These can increase the total monthly housing cost even though they are not part of the principal-and-interest formula.
Principal and interest vs. total monthly payment
Principal is the amount borrowed, while interest is the lender’s charge for providing the loan. The principal-and-interest figure is therefore not always the same as the amount a homeowner needs to budget each month.
Taxes and homeowners insurance are common additions. Depending on the loan and property, mortgage insurance and other charges may also apply. The Consumer Financial Protection Bureau describes principal, interest, taxes, and insurance as four basic elements commonly associated with a mortgage payment.
When comparing an actual loan offer, review the lender’s formal disclosures and the complete projected payment rather than relying only on a calculator estimate.
How to use this mortgage calculator
- Choose the currency you want displayed in the result.
- Enter the home’s purchase price.
- Enter the down payment.
- Enter the annual interest rate and loan term.
- Optionally enter annual property tax and homeowners insurance.
- Select Calculate Mortgage to see the estimated payment, total interest, and calculation steps.
Mortgage costs this calculator does not include
A real mortgage transaction can involve costs beyond the fields in this calculator. Examples include mortgage insurance, loan origination charges, discount points, appraisal and inspection costs, title-related charges, prepaid expenses, escrow deposits, HOA or condominium fees, and maintenance.
These costs vary substantially by loan type, lender, property, and location. Some may be paid upfront, while others may be included in ongoing housing expenses.
Fixed-rate mortgage assumptions
This calculator uses the standard fixed-rate amortization formula for the principal-and-interest portion. It does not model adjustable-rate changes, balloon payments, interest-only periods, refinancing, extra payments, or a changing loan balance.
If your actual loan has special features, use the calculator as a simple mathematical estimate and compare the result with the lender’s payment schedule and disclosures.
Frequently asked questions
What is the formula for a mortgage payment?
The standard fixed-rate payment formula uses the loan principal, monthly interest rate, and total number of monthly payments. The formula is shown above so you can see how the estimate is produced.
Does the mortgage payment include property taxes?
This FreeCalz calculator can include property taxes if you enter an annual amount. It divides that amount by 12 and adds it to the principal-and-interest payment.
Does the calculator include homeowners insurance?
Yes. Enter an annual homeowners-insurance amount and the calculator adds one-twelfth of it to the monthly estimate.
Does a larger down payment reduce the monthly payment?
Generally, yes. A larger down payment reduces the loan principal, which normally reduces the scheduled principal-and-interest payment for the same rate and term.
Does a longer mortgage term reduce monthly payments?
A longer term often lowers the scheduled monthly principal-and-interest payment because the balance is repaid over more months. However, it can result in substantially more interest over the full term.
Why is my lender’s payment different from the calculator?
The lender’s figure may include mortgage insurance, escrow, fees, different tax or insurance assumptions, a different interest rate, or loan-specific terms that this calculator does not model.
Can I use this calculator for an adjustable-rate mortgage?
You can use it for a simple estimate using an assumed rate, but it does not model future rate adjustments or payment changes.
What is amortization?
Amortization is the process of paying down a loan through scheduled payments. For a typical fixed-rate mortgage, the interest portion is generally higher earlier in the schedule and the principal portion grows as the balance falls.
What is the difference between interest rate and APR?
The interest rate is the rate used to calculate interest on the loan. APR is a broader measure that can reflect certain borrowing costs in addition to the interest rate. This calculator uses the interest rate you enter and does not calculate APR.
Can this calculator tell me how much home I can afford?
No. It estimates a payment for the loan details you enter. Affordability also depends on income, existing debts, taxes, insurance, savings, credit, lender requirements, and other household costs.
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Important: This calculator is provided for general informational and educational purposes only. It does not constitute financial, mortgage, tax, legal, or investment advice. Results are estimates based on the information entered and a standard fixed-rate amortization formula. Actual mortgage payments, rates, fees, taxes, insurance, mortgage insurance, loan qualification, and total borrowing costs may differ. Verify important financial information with your lender or a qualified professional before making a financial decision.