Mortgage Calculator: Payment, Taxes and Insurance

What the mortgage calculator includes

The principal-and-interest payment repays the borrowed balance over the chosen term. Property taxes and homeowners insurance are entered as annual dollar amounts and divided by 12. Mortgage insurance and HOA dues are monthly inputs. Set an optional cost to zero only when it genuinely does not apply, rather than treating a missing estimate as free.

The Consumer Financial Protection Bureau's mortgage scenarios show how credit score, down payment, loan term and loan type can affect borrowing costs. This calculator does not fetch a rate or decide whether you qualify. Enter a rate from a lender or compare clearly labeled hypothetical scenarios.

Payment formula and worked example

Let P be the borrowed principal, r the annual interest rate divided by 12 and expressed as a decimal, and n the number of monthly payments. Principal and interest = P × r ÷ [1 − (1 + r)⁻ⁿ]. With zero interest, divide P by n instead. The loan amount is the purchase price minus the down payment; closing costs are not automatically added to it.

For a $300,000 home with $60,000 down, the loan is $240,000. At an illustrative 6.5% fixed rate for 30 years, principal and interest are about $1,517. Add $3,600 a year in taxes and $1,200 a year in homeowners insurance for an estimated $1,917 a month before any HOA dues or mortgage insurance.

Over the full loan term, the example's interest is about $306,107 if every scheduled payment is made and there are no extra payments or refinancing. The interest total covers the loan only. It does not include decades of property taxes, insurance, maintenance or association costs.

Interest rate is different from APR

Use the note interest rate in the payment formula. The CFPB explains that APR includes the interest rate plus certain fees and charges. APR is a comparison measure; substituting it for the note rate would not reproduce the scheduled payment on your loan documents.

Compare offers using the same loan amount and term, and read the fee details as well as the quoted rate. A lower monthly payment can result from stretching repayment over more years rather than paying less interest overall. This estimate also does not model adjustable-rate changes, interest-only periods, balloon payments or a temporary rate buydown.

Turn the estimate into a household budget

Allow for costs outside the mortgage payment: utilities, repairs, moving, furnishings and the cash you need at closing. Property tax and insurance estimates can change, even when the principal-and-interest payment is fixed. Verify assessments, quotes and association dues for the specific property before relying on the all-in estimate.

Recalculate with a higher expense assumption to see whether the monthly total still fits. Keep your emergency money separate from the down payment calculation. A result that fits on paper is a starting point for checking a real loan offer, not lender approval or a promise that a home is affordable.

Your entries are calculated in this browser page without submitting the fields. Record the scenario and the date of each quote if you want to compare it later.