Mortgage Calculator
Fixed-rate home loan
Estimate the complete monthly housing cost
Result
Calculation summary
Enter values to see the result
Mortgage balance preview
Loan balance and monthly cost
- Monthly housing cost
- $2,520.30
- Principal and interest
- $1,970.30
- Loan amount
- $320,000.00
How to use this calculator
- 1Enter the home price, down payment, fixed interest rate, and mortgage term.
- 2Add annual property tax and insurance plus monthly mortgage insurance and association dues.
- 3Calculate to separate principal and interest from the estimated total monthly housing cost.
Formula
Housing cost = principal and interest + property tax ÷ 12 + insurance ÷ 12 + mortgage insurance + HOA
Principal and interest use the fixed-payment annuity formula. User-entered ownership costs are added monthly but do not change loan amortization.
Calculation steps
- Subtract the down payment amount from the home price to obtain the loan principal.
- Calculate fixed monthly principal and interest over the selected term.
- Convert annual property tax and homeowners insurance to monthly estimates.
- Add mortgage insurance and association dues to the estimated housing payment.
- Apply optional extra principal separately to estimate an earlier payoff.
Worked example
A 400,000 home with 20% down leaves a 320,000 mortgage. At 6.25% for 30 years, principal and interest are about 1,970.30 per month before taxes and insurance.
Assumptions
- The mortgage uses one fixed interest rate and monthly payments.
- Taxes, insurance, mortgage insurance, and association dues are user-entered estimates and may change.
- The calculator does not infer mortgage-insurance rules from the down payment.
- Closing costs, points, maintenance, utilities, and transaction costs are excluded.
Sources
Frequently asked questions
What is included in the estimated monthly housing cost?
It includes calculated principal and interest plus the tax, insurance, mortgage-insurance, and association amounts you enter.
Does a down payment below 20% always require mortgage insurance?
Rules differ by loan and jurisdiction. The calculator only reminds you to verify it and never adds insurance automatically.
Does it support adjustable-rate mortgages?
No. The first version assumes one fixed interest rate for the full term.
Are closing costs included?
No. Closing costs, points, maintenance, utilities, and transaction costs require separate estimates.