Mortgage Payment Calculator
Estimate your monthly home loan costs with our free mortgage payment calculator. Calculate principal, interest, taxes, insurance, and see how much house you can afford.
How This Calculator Works
Our mortgage payment calculator helps you estimate your monthly home loan payment by taking into account the home price, down payment, interest rate, and loan term. It also includes property taxes, homeowners insurance, and HOA fees to give you a complete picture of your monthly housing costs. This home loan estimate tool uses standard US mortgage calculations to provide accurate estimates.
Simply enter your home price, down payment percentage (typically 3-20% for conventional loans), current interest rate, and loan term (15 or 30 years). The calculator will show your total monthly payment, breaking down principal, interest, taxes, and insurance separately. You can also add your monthly income to see if the payment is affordable based on the 28% rule.
What's Included in Your Mortgage Payment?
Your total monthly mortgage payment consists of several components. The principal and interest portion is the core loan payment—principal is the amount you borrowed, and interest is what the lender charges. Property taxes are typically 1-2% of your home's value annually, paid monthly through escrow. Homeowners insurance protects your property and is usually $1,000-$2,000 per year, also paid monthly.
If you live in a community with a homeowners association (HOA), those monthly fees are added to your payment. Some loans also require private mortgage insurance (PMI) if your down payment is less than 20%. Our monthly payment calculator includes all these costs to show your true housing expense.
Interest Rate vs Loan Term: What Changes?
Your interest rate has the biggest impact on your monthly payment. Even a 1% difference can change your payment by hundreds of dollars per month. For example, on a $400,000 loan at 6.5% for 30 years, your payment is about $2,528. At 7.5%, it jumps to $2,797—that's $269 more per month, or over $96,000 more in total interest over the life of the loan.
Loan term also matters significantly. A 15-year mortgage has higher monthly payments but saves tens of thousands in interest. A 30-year mortgage has lower monthly payments but costs more over time. Use our calculator to compare different scenarios and find the right balance for your budget.
FAQ: Should You Choose a 15-Year or 30-Year Mortgage?
The choice between a 15-year and 30-year mortgage depends on your financial goals. A 30-year mortgage offers lower monthly payments, making homeownership more accessible and leaving more room in your budget for other expenses or investments. However, you'll pay significantly more interest over the loan's lifetime.
A 15-year mortgage typically has a slightly lower interest rate and builds equity faster, but requires higher monthly payments. If you can comfortably afford the higher payment, you'll save tens of thousands in interest and own your home outright in half the time. Use our mortgage calculator to see the exact difference for your situation.
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This calculator is for educational purposes only and does not provide financial advice.
Frequently Asked Questions
How do I calculate mortgage payments?
To calculate mortgage payments, you need the home price, down payment percentage, interest rate, and loan term. Our mortgage payment calculator uses the standard US mortgage formula to compute your monthly payment, including principal, interest, property taxes, insurance, and HOA fees. Simply enter your home price, down payment (typically 3-20%), interest rate (check current rates), loan term (15 or 30 years), and any additional costs. The calculator will show your total monthly payment and breakdown.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing money, expressed as a percentage. APR (Annual Percentage Rate) includes the interest rate plus other loan costs like origination fees, points, and mortgage insurance. APR gives you a more complete picture of the loan's true cost. For example, a 6.5% interest rate might have a 6.8% APR when including fees. When comparing loans, use APR to see the real cost difference. Our mortgage calculator uses the interest rate for monthly payment calculations.
How much house can I afford based on income?
Most lenders use the 28/36 rule: your monthly mortgage payment (including taxes and insurance) should not exceed 28% of your gross monthly income, and total debt payments should not exceed 36%. For example, if you earn $6,000 per month, your mortgage payment should be around $1,680 or less. However, this varies based on your credit score, debt, down payment, and location. Use our mortgage payment calculator with your income to see if a home price is affordable, or check our rent affordability calculator to compare renting vs buying.
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