Finance & Economics / Personal Finance

Mortgage Calculator

Additional Costs (Annual)

Note

Total Monthly includes principal, interest, property tax, insurance, and HOA fees.

About This Calculator

Use the mortgage calculator when you want faster calculations with a clear method behind every result.

Model home loan payments with interest assumptions to estimate monthly housing cost and long-term borrowing expense.

If your workflow expands, pair this calculator with Mortgage Points Break-Even Calculator and Rent vs Buy Decision Calculator to cross-check assumptions and build a stronger analysis chain.

Formula

M = P * [r(1 + r)^n] / [(1 + r)^n - 1]

Example Calculation

The worked example below demonstrates how the input fields translate into the final output. Use it as a quick validation pass before entering your own numbers.

  • homePrice: 450000
  • downPaymentPercent: 20
  • annualRatePercent: 6.25
  • termYears: 30

Explanation of Results

Result Interpretation

With 20% down and a 30-year term at 6.25%, principal and interest is about $2,216 monthly before taxes and insurance.

FAQ

Why separate principal and interest from escrow costs?

Escrow components vary by location and insurer. Isolating principal and interest keeps financing comparisons consistent.

How sensitive is payment to interest rate changes?

Even a small rate increase can significantly raise monthly payment on long terms, so rate shopping has outsized impact.