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Mortgage Calculator
Enter the home price, down payment and rate. The estimate includes principal, interest, property tax, insurance and HOA.
| Year | Interest paid | Principal paid | Balance |
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How the mortgage payment is calculated
The monthly principal-and-interest payment comes from the standard amortisation formula M = P × r(1+r)n / ((1+r)n − 1), where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate divided by 12) and n is the number of monthly payments. Property tax, insurance and HOA are added on top because lenders collect them with the payment.
A longer term lowers the monthly payment but raises total interest. On a $320,000 loan at 6.5%, a 30-year term costs less per month than a 15-year term, but the total interest is roughly double. Use the table to see how much of each year goes to interest versus principal.
What is not included
This estimate excludes mortgage insurance (PMI), closing costs, HOA special assessments and local fees. PMI usually applies when the down payment is below 20% of the home price.
Frequently asked questions
What is included in the monthly payment?
Principal and interest on the loan, plus monthly property tax, home insurance and any HOA fee you enter.
How does the down payment affect the payment?
A larger down payment reduces the loan amount, which lowers both the monthly payment and the total interest. Below 20% down, lenders usually add mortgage insurance.
Is a 15-year or 30-year mortgage cheaper?
The 15-year option has a higher monthly payment but much less total interest. The 30-year option lowers the monthly cost and leaves more cash flow.
Does this calculator include closing costs?
No. Closing costs, PMI and local fees are separate and vary by lender and location.