What this mortgage calculator does
This mortgage calculator turns a home price into a real monthly number. Enter what you'd pay for the house, how much you'll put down, your loan term, and the interest rate, and it shows your monthly principal and interest in seconds. Change any field and the payment updates right away, so you can test a bigger down payment or a shorter term before you ever talk to a lender. Use it to settle on a price range you're actually comfortable with.
Enter the home price
Type in the purchase price you're aiming for, or the listing price of a home you like.
Set your down payment
Add the cash you plan to put down, as a dollar amount or a percent. Whatever's left is what you borrow.
Choose your loan term
Pick how many years you'll repay over. Thirty years is the most common; 15 years costs more each month but far less overall.
Add the interest rate
Enter your annual rate. No quote yet? Use today's average for the term you picked to get a close estimate.
Read your result
The calculator shows your monthly principal and interest instantly. Tweak any input to see how the payment shifts.
How the math works
Your loan balance gets spread across every month of the term. Each payment covers the interest owed that month plus a slice of the principal. Early on, most of your money goes to interest; later, most of it chips away at what you borrowed. The calculator uses the standard amortization formula to find the one fixed payment that pays your loan down to zero by the end of the term.
Here's a real example. Say you're buying a $400,000 home and put 20% down, which is $80,000. You borrow $320,000 at a fixed 6.5% rate over 30 years. Plug that in and your principal-and-interest payment lands at about $2,022.62 a month. Over the full 30 years you'd pay back roughly $728,143. That means about $408,143 of it is interest, on top of the $320,000 you borrowed. Seeing that total is exactly why running the numbers first pays off.
Your full payment is more than principal and interest
The result above covers principal and interest, the part that actually pays off your loan. Your real monthly bill is usually bigger. Lenders bundle the whole thing into one acronym, PITI: principal, interest, taxes, and insurance. Property taxes are set by your local government and often collected with your payment, then held in escrow. Homeowners insurance is almost always required by the lender. If you put down less than 20%, you'll likely pay PMI (private mortgage insurance) until you build enough equity. And if your home sits in a managed community, HOA dues get added on top. Tally these up before you buy, because together they can push your true cost well above the principal-and-interest figure.
Shorter term or bigger down payment?
Two levers move your numbers the most. A shorter term, like 15 years instead of 30, raises your monthly payment but cuts your total interest by a lot, since you're borrowing for half as long. A bigger down payment shrinks the amount you borrow, lowers the monthly payment, and gets you out of PMI once you pass 20%. Try both above. Run your price at 30 years, then at 15, and watch the monthly payment and the total interest move in opposite directions. That trade-off, a lower payment now versus less interest overall, is the real decision behind most mortgages.
Tips to get the most out of it
Put down 20% if you can swing it. You'll skip PMI and start with a smaller balance.
Shop several lenders. Even a quarter-point lower rate saves real money over 30 years.
Watch the total interest, not just the monthly payment. A low payment can hide a high lifetime cost.
Test a 15-year term once. The monthly jump is smaller than most people expect, and the interest savings are big.
Leave room in your budget for taxes, insurance, and repairs, not just the loan itself.
Get preapproved before you shop, so your price range is based on a real offer instead of a guess.
Frequently asked questions
How much house can I afford?
A common rule of thumb is to keep your total housing payment around 28% of your gross monthly income, though lenders also look at your full debt picture. Use the calculator to find a price where the monthly number fits your budget with room to spare. Then get preapproved to see what a lender will actually offer you.
How much should I put down on a house?
Twenty percent is the classic target, because it lets you skip PMI and lowers your loan balance from day one. Plenty of buyers put down less and still get approved, especially through certain loan programs. The more you put down, the smaller your payment and the less interest you pay over the life of the loan.
Should I get a 15-year or 30-year mortgage?
A 30-year loan keeps your monthly payment lower and easier to manage month to month. A 15-year loan costs more each month but can save you tens of thousands in interest and pays the home off in half the time. Run both above and pick the payment you can live with comfortably.
Does this calculator include property taxes and insurance?
The main result shows principal and interest. Taxes, insurance, PMI, and HOA dues are separate and vary by location, so budget for them on top of the figure here. Your lender will usually fold most of them into your monthly payment through an escrow account.
What is PMI and when do I have to pay it?
PMI, or private mortgage insurance, protects the lender if you stop paying, and it's typically required when your down payment is under 20%. It's added to your monthly payment until you build enough equity in the home. Once you reach about 20% equity, you can usually request to have it removed.
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