Mortgage Calculator

What this mortgage calculator estimates

This calculator estimates your total monthly mortgage payment based on the home price, down payment, interest rate, and loan term you enter, and can optionally factor in property tax and homeowner's insurance estimates to give a more complete picture of what you'd actually pay each month — often referred to as PITI (Principal, Interest, Taxes, and Insurance). The principal and interest portion is calculated using the standard fixed-rate amortization formula lenders use, which spreads the loan balance and interest evenly across the term so each payment is the same amount, even though the mix of principal versus interest within that payment shifts over time.

How mortgage payments are structured

In the early years of a fixed-rate mortgage, a larger share of each payment goes toward interest, with only a small portion reducing the actual loan balance (principal). As the loan matures, that ratio flips — later payments put more toward principal and less toward interest, even though the total payment amount stays the same throughout. This is why paying off a mortgage early saves more in interest the sooner it happens: extra payments made early in the loan reduce the principal balance while it's still generating the most interest.

Your down payment size also matters beyond just reducing the loan amount — many lenders require private mortgage insurance (PMI) on conventional loans with a down payment below 20%, which adds an additional monthly cost not always included in basic payment estimates.

Common use cases

Homebuyers use it early in the shopping process to figure out what price range keeps monthly payments within budget, before ever talking to a lender. People compare different down payment amounts to see how much a larger down payment reduces the monthly payment. Buyers comparing loan terms — a 15-year versus a 30-year mortgage — use it to see the trade-off between a higher monthly payment and dramatically lower total interest paid over the life of the loan. It's also used to estimate how a specific interest rate, whether from a pre-approval or a rate a lender has quoted, translates into an actual monthly dollar figure.

Important limitations

This tool provides an estimate for planning purposes only — it isn't financial advice, and it's not a loan pre-approval or offer. Actual mortgage terms depend on your credit profile, the specific lender, local property tax rates, insurance costs, HOA fees where applicable, and current market rates, all of which can shift the real number meaningfully from this estimate. Always confirm final figures with a licensed lender or mortgage broker before making a purchase decision.

How the down payment affects your total cost

A larger down payment does more than just lower your monthly payment — it reduces the total amount you borrow, which means less total interest paid over the life of the loan, and it can help you avoid or reduce private mortgage insurance if you're able to reach the 20% threshold many conventional lenders use as a cutoff. On the other hand, putting down the minimum and keeping more cash on hand offers flexibility for other expenses, whether that's moving costs, renovations, or simply an emergency fund. This calculator lets you test a few different down payment scenarios side by side, which is often the clearest way to see that trade-off in concrete monthly dollar terms rather than the abstract.