$400,000 home, 20% down, 6.5%, 30 years
$2,022.62 a month for principal and interest, and about $2,539 with tax and insurance. Total interest is about $408,142.
Mortgage calculator
A fixed-rate loan paid monthly with principal and interest only, plus the yearly property tax, home insurance and monthly HOA fee you enter. Mortgage insurance (PMI), closing costs and rate changes are not included, and your lender's figure will differ a little.
400 thousand
%
%
Loan term
% of price
1.8 thousand
Monthly payment
$2,539
Loan of $320,000 after a $80,000 down payment. Principal and interest are $2,023 of the monthly total; over 30 years you pay $408,142 in interest.
- Principal and interest
- $2,023
- Total interest
- $408,142
- Loan amount
- $320,000
- Total paid on the loan
- $728,142
01430
What a mortgage payment is made of
People often search for a mortgage calculator and get a single number back. That number is usually only principal and interest, and the bill that arrives each month is bigger. Property tax and homeowners insurance are normally collected with it, and a condo or planned community adds a monthly HOA fee.
Take a $400,000 home with 20% down, a 6.5% rate and a 30-year loan. The loan is $320,000 and the principal and interest payment is $2,022.62. Add property tax at 1.1% of the price (about $367 a month) and $1,800 a year of insurance ($150 a month) and the real payment is about $2,539.
Then look at the cost of the term. Over 30 years the same loan costs $408,142 in interest, more than the amount borrowed. Switch to 15 years and the payment becomes $2,787.54, roughly $765 more a month, but total interest drops to $181,758. Neither is right for everyone. It comes down to whether you would rather keep the monthly cash or the lifetime saving.
A few things to check before you rely on any estimate. Tax rates vary a lot by county. Lenders look at the total monthly housing cost against your income, so use the full figure rather than only principal and interest. And rates on offer change daily, so test a rate a little higher and lower to see how sensitive your budget is.
Sources
What this calculator does not account for
- PMI, closing costs and loan fees.
- Rate changes on an adjustable loan.
- Exact property tax and insurance for your address.
How this is calculated
Formula: Monthly mortgage payment
M =L × r ÷ (1 − (1 + r)^−n)What the symbols mean
- MPrincipal and interest paid each month.
- LLoan amount: home price minus the down payment.
- rMonthly rate: the yearly rate ÷ 12.
- nNumber of monthly payments: years × 12.
Good to know
- Property tax and insurance are added on top, each divided by 12.
- For a plain loan schedule in any currency, use the loan EMI calculator.
Read the full methodologyFound an error? Contact us
Worked examples
Each example is worked out by the same code as the calculator above.
Same loan over 15 years
$2,787.54 a month and about $181,758 in interest.
Embed this calculator
The frame shows the tool only.
<iframe src="/embed/mortgage-calculator" title="Mortgage" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>Questions
How is a monthly mortgage payment calculated?
The loan amount, the monthly interest rate and the number of months go into a standard formula that gives a level payment. Tax, insurance and any HOA fee are added to it.
Does the payment include property tax and insurance?
Yes, if you fill them in. The tool shows the principal and interest part and the full monthly total separately, because lenders often quote only the first.
Why do I pay so much interest in the first years?
Interest is charged on the balance. Early on the balance is large, so most of each payment is interest. The split slowly tilts toward principal.
Is PMI included?
No. If your down payment is under 20%, lenders usually add private mortgage insurance. Ask for the figure and add it to the monthly total.
Is a 15-year loan worth it?
The payment is higher but the interest is far lower. Try the 15-year option to see the gap for your own numbers.