Mortgage Calculator

About this tool

A mortgage is typically the largest financial commitment most people make in their lifetime. Our Mortgage Calculator helps you understand the true cost of homeownership by calculating not just the principal and interest, but also property taxes, homeowners insurance, HOA fees, and Private Mortgage Insurance (PMI). Understanding your complete monthly payment is crucial for budgeting and determining how much house you can truly afford.

The calculator uses the standard amortization formula where early payments are heavily weighted toward interest, with more principal paid off in later years. For example, on a 30-year $300,000 mortgage at 7% interest, your first payment might include $1,750 in interest but only $249 in principal. By the final year, this reverses dramatically. Our tool shows you exactly how much interest you'll pay over the loan's lifetime - often 50-100% of the original loan amount.

Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's value. This protects the lender if you default, but it costs you 0.5-1.5% of the loan amount annually. Our calculator factors in PMI and shows when it can be removed (typically when you reach 20% equity through payments and appreciation). Making a larger down payment to avoid PMI can save tens of thousands over the loan term.

The calculator also demonstrates the dramatic difference between loan terms. A 15-year mortgage has higher monthly payments but pays off faster and saves enormous amounts in interest - often 50-60% less total interest than a 30-year loan. For instance, a $300,000 loan at 6.5% costs $408,000 total on a 30-year term but only $377,000 on a 15-year term, saving over $31,000. All calculations are done privately in your browser with no data stored or transmitted.

Usage examples

Loan amount: $315,000. Monthly P&I: $2,095. With taxes ($500), insurance ($150), PMI ($236): Total monthly payment: $2,981. Total interest over 30 years: $439,223. PMI can be removed after 8-10 years when reaching 20% equity.

Loan amount: $400,000. Monthly P&I: $2,528. With taxes ($700), insurance ($200), no PMI: Total monthly payment: $3,428. Total interest over 30 years: $510,080. No PMI required due to 20% down payment.

30-year: $1,799/month P&I, $347,515 total interest. 15-year: $2,532/month P&I, $155,761 total interest. The 15-year loan saves $191,754 in interest but requires $733 more per month. Break-even: If you invest the $733 difference at 6% return, results are similar.

Loan: $320,000 (20% down), 7% rate. Monthly P&I: $2,129. Property tax: $833/month. Insurance: $167. Total: $3,129/month. Property taxes alone are $10,000/year, making the home much more expensive than purchase price suggests.

Loan: $238,000. Monthly P&I: $1,544. HOA: $300. Property tax: $300. Insurance: $100. PMI: $148 (5% down needed for 20%). Total: $2,392/month. HOA fees add $3,600/year to housing costs.

How to use

1. Optional: Select a Quick Start preset (Starter Home, Average Home, Premium Home, or 15-Year)
2. Enter the home price or loan amount you're considering
3. Input your down payment amount (typically 3-20% of home price)
4. Enter the annual interest rate (check current rates from lenders)
5. Select your loan term (15, 20, or 30 years are most common)
6. Add annual property tax amount (usually 1-2% of home value)
7. Include annual homeowners insurance premium
8. Add HOA fees if applicable (monthly amount)
9. Optional: Add extra monthly payment to see payoff acceleration
10. Optional: Select refinance comparison scenario to analyze savings
11. Click "Run Tool" to see your complete monthly payment breakdown
12. Review total interest paid, amortization schedule, and refinance analysis
13. Check affordability assessment to ensure payment fits your budget
14. Each output has its own Copy button for easy sharing or record-keeping

Benefits

• Complete monthly payment calculation including all costs (PITI + HOA + PMI)
• Shows total interest paid over entire loan term
• Calculates PMI and indicates when it can be removed
• Compare different loan terms (15, 20, 30 years) side by side
• See how much house you can afford with your budget
• Understand the true cost of borrowing money
• Factor in property taxes and insurance for accurate budgeting
• No registration or personal information required
• Instant calculations with detailed breakdowns
• Works on all devices with privacy protection
• Free forever with no limitations
• Helps you make informed home buying decisions

FAQs