Mortgage calculator
Use this online mortgage calculator to estimate principal and interest, explore different loan terms and down payments, and understand the costs that may contribute to a monthly housing payment.
Using Texas: property tax 1.63% of value, home insurance $4,200/yr, typical home price $300,000, cost of living index 93 (US = 100).
Estimated monthly payment
- Principal & interest
- $1,516.96
- Taxes & insurance
- $757.50
- Amount borrowed
- $240,000
- Total interest over the term
- $306,107
- Estimated monthly payment
- $2,274.46
Turn this payment into a real rate quote
You have the maths. A licensed lender can tell you the rate, the fees and the payment you would actually be offered.
Get matched with a lenderTakes about a minute. We match you with vetted pros in your area.
The short answer
Your monthly mortgage payment is set by four things: the amount borrowed, the interest rate, the length of the loan and any escrowed taxes and insurance. Enter them below for an estimate of the monthly payment, the total interest over the term and the total cost of the loan.
Today's best 30-year fixed mortgage rates
Rates shown are indicative national averages. Your own rate depends on credit score, down payment, loan size and location — a lender quote is the only number that binds.
| Loan type | Interest rate | APR | What it means |
|---|---|---|---|
| 30-year fixed | 6.42% | 6.55% | Lowest monthly payment, most interest paid overall |
| 20-year fixed | 6.18% | 6.33% | Middle ground on payment and total interest |
| 15-year fixed | 5.61% | 5.79% | Highest payment, far less interest |
| FHA 30-year fixed | 6.12% | 7.03% | Lower credit score bar, mortgage insurance applies |
| VA 30-year fixed | 5.98% | 6.24% | Eligible service members, usually no down payment |
| 5/1 ARM | 6.05% | 7.11% | Fixed for five years, then adjusts |
What is inside the payment
Principal — the slice that reduces the balance you owe.
Interest — the lender's charge, largest at the start of the loan.
Property taxes — usually collected monthly into escrow.
Homeowners insurance, and mortgage insurance if your deposit is under 20%.
Why early payments are mostly interest
An amortising loan charges interest on the outstanding balance. In month one that balance is at its highest, so most of the payment covers interest.
Rate and term, side by side
Shortening a 30-year term to 15 years raises the monthly payment substantially but cuts total interest by more than half. A one-percentage-point difference in rate on a $350,000 loan changes the monthly payment by roughly $200 and the lifetime interest by tens of thousands.
How to Use an Online Mortgage Calculator
An online mortgage calculator requires four core inputs: home price, down payment amount, interest rate, and loan term. The tool then calculates your monthly principal and interest payment.
Principal and interest make up the base payment that reduces your loan balance over time.
Property taxes vary widely by location; check your county assessor's website for accurate rates.
Homeowners insurance costs depend on home value, location, construction type, and coverage limits selected.
Private mortgage insurance (PMI) adds $50-$200+ monthly if your down payment is below 20%.
Understanding Amortization and How Your Payment Breaks Down
Amortization describes how your mortgage payment is split between principal and interest over the loan's life. Early payments are interest-heavy; later payments reduce principal faster.
Front-loaded interest protects lenders but means early extra payments have maximum impact on total interest paid.
A 15-year loan costs more monthly but saves dramatically on total interest compared to 30 years.
Making one extra principal payment annually can shave years off your mortgage and thousands in interest.
Review an amortization table before committing to understand how much you'll actually pay over time.
What Is Escrow and How It Affects Your Monthly Payment
What is escrow in mortgage terms? It's an account your lender maintains to pay property taxes and homeowners insurance on your behalf.
Escrow is mandatory for most loans with less than 20% down payment to protect lender interests.
You can usually eliminate escrow once you reach 20% equity, but you'll handle tax and insurance payments yourself.
Lenders must provide annual escrow analysis statements showing deposits, disbursements, and any shortage or surplus.
Escrow shortages spread over 12 months, but you can pay the deficit immediately to avoid payment increases.
Debt to Income Ratio Calculator: Qualifying for Your Mortgage
A debt to income ratio calculator divides your monthly debt obligations by your gross monthly income. Lenders use this metric to assess your ability to manage payments.
Front-end ratio (housing only) should typically stay below 28% for conventional financing with competitive rates.
Back-end ratio includes housing plus car loans, student loans, minimum credit card payments, and other installment debts.
Child support, alimony, and co-signed loans count as debts even if someone else makes the payments.
Paying off small debts before applying can dramatically improve your DTI and increase your borrowing power.
How to Get Pre Approved for a Mortgage and Plan Your Purchase Timing
How to get pre approved for a mortgage starts with gathering documentation: two years of tax returns, two months of bank statements, recent pay stubs, and permission for a credit check. Lenders verify income, assets, employment, and debt obligations.
Pre-approval letters show sellers you're a serious buyer with verified financing, not just browsing casually.
Rate locks during pre-approval protect you from increases for 30-60 days while you shop for homes.
Avoid new credit applications, job changes, or large purchases between pre-approval and closing to maintain qualification.
Multiple mortgage inquiries within 45 days count as one credit pull, so compare lenders without score damage.
The formula
M = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] — P = amount borrowed, r = monthly rate (annual ÷ 12), n = number of monthly payments.
FAQ
How to use the online mortgage calculator
Enter the home price, down payment, interest rate, and repayment term to estimate principal and interest. Mortgage amortization directs more of an early payment toward interest and more of a later payment toward principal. A complete housing estimate may also need property taxes, homeowners insurance, association dues, mortgage insurance, and escrow deposits, none of which are necessarily included in a basic calculator result.
A first time home buyer should compare the estimate with a lender’s official loan disclosure. A conventional loan may have different down-payment, credit, and mortgage-insurance requirements from government-backed financing. A debt to income ratio calculator can provide additional context by comparing required monthly debts with gross income. Preapproval is still conditional, and the final payment can change with the selected property, rate, taxes, insurance, and closing terms.
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