About This Tool
About the Mortgage Calculator
Buying a home is a major financial decision, and a payment estimate is one input to that decision. This calculator combines principal and interest with the annual property tax, homeowner's insurance, private mortgage insurance (PMI), and HOA amounts you enter.
Enter the home price, down payment, selected loan term, and nominal annual interest rate to estimate the monthly payment and loan interest. After calculation, the tool also shows a side-by-side 15- and 30-year principal-and-interest comparison using the same entered principal and rate. That comparison does not include recurring taxes, insurance, PMI, or HOA charges, and actual quoted rates can differ by term.
The monthly estimate is limited to the entered fields. It does not include closing costs, maintenance, repairs, utilities, rate changes, escrow adjustments, or every lender and mortgage-insurance rule. Use it for planning rather than as a lender quote or affordability decision.
Key Features
- Entered-Cost Breakdown: See the estimated monthly principal and interest alongside the tax, insurance, PMI, and HOA amounts calculated from your entries.
- 15- vs 30-Year Comparison: Compare principal-and-interest payments and lifetime loan interest at the same entered rate; recurring housing charges are excluded from the comparison totals.
- Down Payment Analysis: Automatically calculates your down payment percentage and alerts you when PMI may be required (below 20% down).
- Lifetime Loan Totals: View principal-and-interest payments, total interest, and down payment; recurring taxes, insurance, PMI, HOA, maintenance, utilities, and closing costs are not included in the lifetime total.
- Flexible Inputs: Customize home price, interest rate, property taxes, insurance, PMI, and HOA fees for a more relevant planning estimate.
How this tool works
Methodology reviewed 2026-07-11The calculator subtracts the down payment from the home price to find principal, then applies the standard fixed-rate amortization equation to the selected term and annual interest rate. Annual property tax, homeowners insurance, private mortgage insurance, and homeowners association charges are divided by twelve and added to principal and interest. The displayed lifetime total combines loan payments with the down payment; it does not include recurring tax, insurance, PMI, HOA, maintenance, utilities, or closing costs.
Worked example
For a $300,000 home with $60,000 down, a 30-year term, 6.5% interest, $3,000 annual tax, and $1,200 annual insurance, the tool estimates principal-and-interest first and then adds $350 per month for tax and insurance.
How to interpret it: This is a planning estimate, not a lender quote. Closing costs, rate locks, escrow adjustments, mortgage insurance rules, and local assessments can change the actual cash required and monthly payment.
Assumptions
- The interest rate remains fixed for the full selected term.
- Taxes, insurance, PMI, and HOA values are entered as annual amounts.
- Payments occur monthly and the first payment is one month after origination.
Limitations
- The lifetime total excludes tax, insurance, PMI, HOA, maintenance, utilities, closing costs, lender fees, and points even though some recurring amounts appear in the monthly estimate.
- Qualification, available rates, and PMI removal depend on lender, borrower, loan type, and jurisdiction.
Sources
Sources explain the standard or planning method; they do not endorse Free Toolset or verify individual results.
Frequently Asked Questions
How much house can I afford on my salary?
This calculator does not determine affordability from salary. Lenders and households consider income, existing debts, credit, cash reserves, loan program, taxes, insurance, maintenance, and other expenses. Use a payment result as one planning input and compare it with your full budget and actual lender terms.
What is PMI and when is it required?
PMI commonly applies to some conventional loans with less than 20% down, but requirements, pricing, and cancellation rules depend on the loan. This calculator does not quote PMI automatically; enter an annual amount from a lender estimate when applicable.
Should I choose a 15-year or 30-year mortgage?
For the same principal and rate, a shorter term generally raises the monthly principal-and-interest payment and reduces total interest. The results table compares 15 and 30 years using the same entered rate and excludes recurring housing charges from its lifetime totals. Compare those estimates with actual lender quotes and your budget.