Mortgage Calculator
Your monthly home payment: principal and interest, plus property tax and insurance, and what the loan costs in interest.
Result…
How it's calculated
M = L × i ÷ (1 − (1 + i)^−n) L = price − down payment, i = yearly rate ÷ 12, n = years × 12 Monthly total = M + property tax ÷ 12 + insurance ÷ 12
The monthly payment on a fixed-rate mortgage, with the property tax and insurance most lenders collect alongside it. The chart shows each year split into principal and interest: early years are mostly interest. An extra monthly payment goes straight to principal and shortens the loan.
Your numbers, step by step
About the Mortgage calculator
This mortgage calculator works out the monthly payment on a fixed-rate home loan. It adds the property tax and home insurance most lenders collect alongside it, and shows how much the loan will cost in interest over its life. Enter the home price, your down payment, the interest rate and the term. The chart then splits every year into principal and interest, and an optional extra monthly payment shows how much sooner you could be debt-free.
How to use it
- Enter the home price and your down payment as a percentage of it.
- Enter the yearly interest rate and the loan term in years.
- Add the yearly property tax rate and home insurance if you want the full monthly cost; leave them at 0 for principal and interest only.
- Optionally add an extra monthly payment to see the time and interest it saves.
- Read the monthly total, the loan amount and the total interest, and follow the steps to see the working.
Worked example
A $250,000 home with 20% down leaves a $200,000 loan. At 6% a year over 30 years, the principal and interest payment is $1,199.10 a month, and the loan costs $231,676.38 in interest. Add property tax at 1.2% a year ($250 a month) and $1,200 a year of insurance ($100 a month) and the monthly total is $1,549.10.
Updated
Questions people ask
How is a monthly mortgage payment calculated?
The standard formula is M = L × i ÷ (1 − (1 + i)^−n). L is the loan amount, i is the yearly rate divided by 12, and n is the number of monthly payments (years × 12).
Does the payment include property tax and insurance?
Only if you enter them. The calculator adds property tax ÷ 12 and insurance ÷ 12 to the principal and interest payment to give the monthly total.
Why is most of my early payment interest?
Interest is charged on the balance still owed, which is largest at the start. As the balance falls, more of each fixed payment goes to principal. The chart shows this year by year.
How much does an extra monthly payment help?
An extra payment goes straight to principal, so the balance falls faster and less interest builds up. The calculator shows the months to pay off and the interest with your extra amount.
Does a bigger down payment lower the payment?
Yes. A larger down payment means a smaller loan, which lowers both the monthly payment and the total interest you pay.