Mortgage calculator
Enter the home price, down payment and rate, get the monthly payment.
How is a mortgage payment calculated?
The principal-and-interest part uses the loan payment formula P × r ÷ (1 − (1 + r)⁻ⁿ), with r the monthly rate and n the number of payments. A $200,000 loan at 6% for 30 years is $1,199.10 a month; property tax, insurance and any PMI or HOA dues come on top.
How much interest will I pay over the loan?
That $200,000 loan at 6% costs $231,676.38 in interest over 30 years. The same loan over 15 years has a higher payment, $1,687.71, but only $103,788.46 of interest.
How much do extra payments save?
Paying an extra $100 a month on the $200,000, 6%, 30-year loan pays it off in 295 months instead of 360 and saves $49,138 in interest, because every extra dollar goes straight to principal.
What is PMI and when does it stop?
Private mortgage insurance is usually charged on conventional loans with less than 20% down. Under the Homeowners Protection Act you can ask to cancel it when the balance reaches 80% of the home's original value, and it ends automatically at 78%. The calculator stops it at 78%.
Why is my lender's number different?
Rates, fees, taxes and insurance differ by lender, place and credit. Use your Loan Estimate for the real figures — the calculator shows how the pieces fit together.
How much does one percentage point of rate change the payment?
On a $300,000 loan over 30 years, 6% gives $1,798.65 a month for principal and interest and 7% gives $1,995.91, a difference of $197.26 a month or $71,012 over the life of the loan.
What is escrow?
An account the servicer may hold to pay your property tax and homeowners insurance (and PMI, if any) on your behalf. The servicer usually collects one-twelfth of the yearly bills to each payment, so the monthly total is higher than the principal-and-interest figure. The calculator shows both parts separately.
Is the interest rate the same as the APR?
No. The interest rate sets the payment. The annual percentage rate also counts certain fees and costs of the loan, so it is higher and is meant for comparing offers. Enter the interest rate here, not the APR.
How the payment is built
Principal and interest are fixed for a fixed-rate loan: the formula spreads the loan evenly so that the balance reaches zero with the last payment. Early payments are mostly interest, because interest is charged on the whole remaining balance, and each payment leaves a little more principal paid than the one before. Property tax, homeowners insurance, PMI and any HOA dues are added on top; unlike principal and interest, these can change from year to year.
Worked example: a $400,000 home with 10% down
The loan is $360,000 at 6.5% for 30 years (360 payments). The monthly rate is 6.5 ÷ 12 = 0.5417%, and the payment for principal and interest is $2,275.44. In the first month the interest is $360,000 × 0.5417% = $1,950.00, so only $325.44 goes to principal.
With less than 20% down, PMI is likely. On this loan the balance falls to 80% of the original price ($320,000) after 95 payments (7 years 11 months) and to 78% ($312,000) after 109 payments (9 years 1 month) if you pay on schedule. That is when the Homeowners Protection Act lets you request cancellation and then ends PMI automatically, for loans it covers. Extra payments bring those dates forward.
Common mistakes
Looking only at principal and interest understates the cost: taxes and insurance can add a large amount to the monthly total, and they vary by county and by coverage, so use your own bills. Comparing loans by payment alone hides the total interest, which is why the term matters: a shorter term has a higher payment but far less interest. Entering the APR in place of the rate overstates the payment. Finally, a 20% down payment applies to the purchase price or appraised value, not to the loan amount, and the 78% cancellation point is measured against the original value, not today's market value.
Sources: Homeowners Protection Act of 1998 (12 U.S.C. 4901–4910) for PMI cancellation at 80% and termination at 78%; Consumer Financial Protection Bureau, “What is private mortgage insurance?” and “What is an escrow or impound account?”. Related: amortization calculator, biweekly mortgage calculator, refinance calculator, loan-to-value calculator.
Estimates for planning only — not financial, tax or legal advice. Your lender's or employer's figures decide. How we check our calculators.