Finance
Mortgage Calculator
Estimate your monthly mortgage payment, see how interest and principal split over time, and understand the true cost of homeownership.
Guide
How to use the Mortgage Calculator
The Mortgage Calculator helps you make a quick estimate, compare scenarios, and understand the numbers behind the result. It is designed for fast planning, with enough context to make the answer useful instead of just a number.
- Enter the amounts, rates, and time period that match the scenario you want to model.
- Review the main result first, then scan the supporting totals to understand what drives it.
- Change one input at a time to compare payments, interest, growth, savings, or break-even points.
Method
How this calculator works
It applies the standard fixed-rate amortization formula, then adds recurring ownership costs so the monthly estimate is closer to the full housing payment.
This calculator is useful for planning a home purchase, comparing down payments, and understanding how rate or term changes affect monthly cost.
Because assumptions matter, try a few values that represent optimistic, typical, and conservative cases.
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
Example
Worked example
Take a $425,000 home with 20% down ($85,000). The $340,000 loan at 6.85% over 30 years works out to about $2,228 a month in principal and interest. Add property tax at 1.25% of the home's value (about $443 a month) and $150 for insurance, and the realistic monthly cost is roughly $2,820.
Drop the rate to 5.85% and the principal-and-interest payment falls to about $2,006 — a $222 monthly difference that adds up to nearly $80,000 over the life of the loan. That sensitivity to rate is exactly what the calculator lets you explore.
FAQ
Common questions
How much is the monthly payment on a $400,000 mortgage?
At 7% interest on a 30-year fixed loan, principal and interest on $400,000 come to about $2,661 per month. At 6% the same loan costs about $2,398. Property taxes, homeowners insurance, and PMI come on top of that, which is why this calculator includes them.
What is PMI and when can I stop paying it?
Private mortgage insurance is typically required when you put down less than 20%, and usually costs 0.3%–1.5% of the loan amount per year. You can request removal once your balance falls to 80% of the home's original value, and lenders must cancel it automatically at 78%.
How much income do I need for a $400,000 mortgage?
A common lender guideline is that your full housing payment should stay under 28% of gross monthly income. With principal and interest around $2,661 at 7% plus roughly $600 in taxes and insurance, that points to a household income of about $140,000 a year — less if you have a larger down payment or lower rate.
What information do I need for the Mortgage?
You usually need home price, down payment, interest rate, loan term, taxes, insurance, and optional PMI or HOA costs. You can change the inputs and recalculate as many times as needed.
How does the Mortgage calculate the result?
It applies the standard fixed-rate amortization formula, then adds recurring ownership costs so the monthly estimate is closer to the full housing payment.
Are the results exact?
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
Related
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Sources