Mortgage Calculator

How a mortgage payment is estimated

A mortgage payment usually has more moving parts than the loan payment alone. The principal and interest portion is based on the loan amount, rate, and term. The loan amount is the home price minus the down payment. A longer term generally lowers the monthly payment, but it keeps interest running for more years. A shorter term usually raises the monthly payment, but can reduce total interest paid over the life of the loan.

Property tax and homeowners insurance are often collected monthly through escrow, so this calculator spreads annual estimates across 12 months and adds them to the principal and interest payment. This makes the monthly estimate closer to what a homeowner may actually budget for. It does not include every possible cost, such as HOA dues, mortgage insurance, closing costs, maintenance, or changes in tax and insurance bills over time.

Use the sliders to compare realistic scenarios. Increase the down payment and watch the loan balance, interest cost, and payment change. Toggle between 15 and 30 years to see the tradeoff between a lower payment and higher lifetime interest. If you are comparing homes, keep tax and insurance assumptions visible because two homes with the same price can produce different monthly budgets.