Finance
Mortgage Calculator
Estimate what a home will really cost per month. Enter the price, down payment, rate, and term — plus property tax and insurance — and see your full monthly payment, the total interest over the life of the loan, and the all-in cost of the house.
Monthly payment
$2,244.79
Principal & interest
$1,769.79
Down payment
$70,000.00
Loan amount
$280,000.00
Total interest
$357,124.57
Total cost of home
$878,124.57
Monthly payment includes principal, interest, and escrow (property tax + insurance). A down payment under 20% usually adds PMI on top.
How it works
The principal-and-interest part of a mortgage payment uses the standard amortization formula: the loan amount (price minus down payment) is spread over the term so that a fixed monthly payment covers all interest and lands the balance at exactly zero.
Most lenders also collect property tax and homeowner's insurance monthly in an escrow account, so the payment you actually write each month is P&I plus escrow. That's the number this calculator shows first.
If your down payment is below 20%, most conventional loans add private mortgage insurance (PMI) — typically 0.3–1.5% of the loan per year — until you reach 20% equity. Budget for it separately if that's your situation.
Loan = price × (1 − down% / 100)
r = annual rate / 12, n = years × 12
P&I = loan × [r(1+r)^n] / [(1+r)^n − 1]
Payment = P&I + (property tax + insurance) / 12
Example: $280,000 at 6.5% for 30 yrs → $1,770 P&I + $475 escrow ≈ $2,245/moFrequently asked questions
How much house can I afford?
A common guideline is the 28/36 rule: housing costs under 28% of gross monthly income, and all debt payments under 36%. On a $100,000 income that caps the full monthly payment (with taxes and insurance) around $2,330.
How much difference does the interest rate make?
Enormous. On a $280,000 30-year loan, the difference between 6% and 7% is about $186 a month — and roughly $67,000 over the life of the loan. Shopping multiple lenders for even a quarter point pays off.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan carries a lower rate and cuts total interest by more than half, but the payment is much higher. Many buyers take the 30-year for flexibility and pay extra principal when they can — you get most of the benefit without the obligation.
What is PMI and how do I avoid it?
Private mortgage insurance protects the lender when you put down less than 20%. It typically costs 0.3–1.5% of the loan annually and can be removed once you reach 20% equity. Avoid it with a bigger down payment, or plan to request removal early.
Do extra payments really help?
Yes — every extra dollar goes straight to principal, shrinking the balance all future interest is computed on. One extra payment a year on a 30-year mortgage typically pays it off 4–5 years early.