Mortgage calculator
Enter the price of the home, your down payment, the rate and the term to see the monthly payment. Add property tax, insurance and dues to see what a whole month costs.
This answer is for the example values in the boxes above. $400,000 home, $80,000 down, 30 years at 6.5%, with taxes, insurance and dues. Change the boxes to see your own answer.
This is an estimate. Your lender's quote decides the rate, the fees and what the monthly payment includes.
How it works
The loan is the price minus your down payment. Every month the lender charges interest on what you still owe, at one twelfth of the yearly rate, and the calculator finds the one payment that pays the loan off in the number of months you chose. That payment is principal and interest.
Then it adds a twelfth of the yearly property tax and a twelfth of the yearly home insurance. Mortgage insurance and association dues go in as the monthly amounts you type. The result is the cost of a whole month.
The total interest is everything you pay in interest from the first payment to the last. The rate stays the same for the whole term, so the figure does not fit a loan whose rate can change.
A worked example
A home costs $400,000 and you put $80,000 down, which is 20 percent. The loan is $320,000. At 6.5 percent for 30 years the payment of principal and interest is $2,022.62.
Property tax of $4,000 a year adds $333.33 a month, and home insurance of $1,500 a year adds $125.00. The month comes to $2,480.95.
Over the 30 years you pay $408,142.36 in interest, which is more than the $320,000 you borrowed. The same loan over 15 years at the same rate costs $2,787.54 a month and $181,757.84 in interest.
Mortgage insurance
A lender may ask for private mortgage insurance when the down payment is small. It is a monthly cost on top of the loan, and your quote says how much. The calculator does not guess it. Type it in and it joins the payment.
Federal law says when it can end. The Homeowners Protection Act lets you ask your servicer in writing to cancel it once the balance is scheduled to reach 80 percent of the home’s original value, if you are current and have a good payment history. The lender can ask for proof that the home has not lost value.
The insurance ends on its own when the balance is scheduled to reach 78 percent, if you are current. Loans that the law treats as high risk follow other rules.
What the payment leaves out
The Loan Estimate for a mortgage has a table called Projected Payments. It lists the principal and interest, any mortgage insurance, and an estimate of taxes, insurance and assessments. Compare this result with that table when you have a quote.
Closing costs and points are not in the monthly payment, and neither is any change in your property tax or insurance after the first year. Treat the result as an estimate for planning, and rely on your lender’s figure.
Sources
- Homeowners Protection Act, 12 U.S. Code § 4901, definitions: the cancellation date and the termination date of private mortgage insurance, read on 2026-11-01.
- Homeowners Protection Act, 12 U.S. Code § 4902, termination of private mortgage insurance, read on 2026-11-01.
- Regulation Z, 12 CFR § 1026.37, content of the Loan Estimate for a mortgage, read on 2026-11-01.
Questions
What is the payment on a $320,000 mortgage at 6.5%?
Over 30 years, principal and interest come to $2,022.62 a month. With $4,000 of property tax and $1,500 of home insurance a year added, the month costs $2,480.95.
Which rate do I enter, the interest rate or the APR?
Enter the interest rate on your offer, because the payment follows from it. The APR also takes some fees into account, so it is the figure for comparing offers and cannot give you the payment.
When can I stop paying mortgage insurance?
Under the Homeowners Protection Act you can ask your servicer in writing to cancel private mortgage insurance once the balance is scheduled to reach 80 percent of the home’s original value. It ends on its own at 78 percent if you are current on your payments.
How much less does a 15-year mortgage cost in interest?
On $320,000 at 6.5%, a 15-year loan costs $2,787.54 a month and $181,757.84 in interest, against $2,022.62 and $408,142.36 over 30 years. A lender may quote a lower rate for the shorter loan, so enter each offer.
Does the payment include property tax and insurance?
Only if you enter them. The calculator adds a twelfth of each yearly amount to the principal and interest, then the monthly mortgage insurance and dues that you type. Your Loan Estimate shows the lender’s own projection.
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