Mortgage Calculator
A mortgage payment is more than the loan repayment. This calculator adds property tax, insurance and other monthly costs to the principal and interest to show what owning will really cost each month.
Results
Total monthly payment
$2,514.28
- Principal and interest
- $2,022.62
- Property tax
- $366.67
- Home insurance
- $125.00
- HOA / maintenance
- $0.00
- Loan amount
- $320,000
- Down payment
- $80,000
- Total interest over the loan
- $408,142
On a $400,000.00 home with 20% down, the monthly payment is about $2,514.28: $2,022.62 principal and interest, $366.67 property tax, $125.00 insurance and $0.00 other.
Monthly payment breakdown
- Principal & interest$2,023 (80.4%)
- Property tax$367 (14.6%)
- Insurance & other$125 (5.0%)
Yearly loan schedule (30 rows)
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| Year 1 | $3,577 | $20,695 | $316,423 |
| Year 2 | $3,816 | $20,455 | $312,607 |
| Year 3 | $4,072 | $20,200 | $308,535 |
| Year 4 | $4,345 | $19,927 | $304,191 |
| Year 5 | $4,636 | $19,636 | $299,555 |
| Year 6 | $4,946 | $19,325 | $294,609 |
| Year 7 | $5,277 | $18,994 | $289,332 |
| Year 8 | $5,631 | $18,641 | $283,701 |
| Year 9 | $6,008 | $18,264 | $277,694 |
| Year 10 | $6,410 | $17,861 | $271,284 |
| Year 11 | $6,839 | $17,432 | $264,444 |
| Year 12 | $7,297 | $16,974 | $257,147 |
| Year 13 | $7,786 | $16,485 | $249,361 |
| Year 14 | $8,308 | $15,964 | $241,053 |
| Year 15 | $8,864 | $15,407 | $232,189 |
| Year 16 | $9,458 | $14,814 | $222,732 |
| Year 17 | $10,091 | $14,180 | $212,641 |
| Year 18 | $10,767 | $13,505 | $201,874 |
| Year 19 | $11,488 | $12,784 | $190,386 |
| Year 20 | $12,257 | $12,014 | $178,129 |
| Year 21 | $13,078 | $11,193 | $165,051 |
| Year 22 | $13,954 | $10,317 | $151,097 |
| Year 23 | $14,888 | $9,383 | $136,208 |
| Year 24 | $15,886 | $8,386 | $120,323 |
| Year 25 | $16,949 | $7,322 | $103,373 |
| Year 26 | $18,085 | $6,187 | $85,289 |
| Year 27 | $19,296 | $4,976 | $65,993 |
| Year 28 | $20,588 | $3,683 | $45,405 |
| Year 29 | $21,967 | $2,305 | $23,438 |
| Year 30 | $23,438 | $833 | $0 |
Show the calculation steps
- Down payment = $80,000.00; loan = $320,000.00.
- Principal and interest = L × r × (1 + r)^n ÷ ((1 + r)^n − 1) = $2,022.62 over 360 months at 6.5%.
- Property tax = price × 1.1% ÷ 12 = $366.67; insurance = $1,500.00 ÷ 12 = $125.00; other monthly costs = $0.00.
- Total monthly payment = $2,514.28. Total interest over the loan = $408,142.36.
- Lenders may also require mortgage insurance when the down payment is small. Taxes, insurance and fees vary by location and change over time.
What is in a mortgage payment
The core is principal and interest, calculated with the standard loan formula. Lenders often also collect property tax and insurance monthly and hold them in escrow, so the total monthly payment is higher than the loan repayment alone.
Lowering the payment
A bigger down payment, a longer term, a lower rate and a cheaper home all reduce the payment. A longer term lowers the monthly amount but raises the total interest.
Formula
Principal and interest = L × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Total monthly = Principal and interest + property tax ÷ 12 + insurance ÷ 12 + HOA
Where:
- L
- = Loan amount (price − down payment)
- r
- = Monthly interest rate
- n
- = Number of monthly payments
Example calculation
$400,000 home, 20% down, 6.5% for 30 years
Inputs
- Home Price
- $400,000
- Down Payment
- 20 %
- Mortgage Rate
- 6.5 %
- Loan Term
- 30 years
- Property Tax
- 1.1 % of price a year
- Home Insurance per Year
- $1,500
- HOA or Maintenance per Month
- $0
Result
- Total monthly payment
- $2,514.28
- Principal and interest
- $2,022.62
- Property tax
- $366.67
- Home insurance
- $125.00
- HOA / maintenance
- $0.00
- Loan amount
- $320,000
- Down payment
- $80,000
- Total interest over the loan
- $408,142
Step-by-step
- Down payment = $80,000.00; loan = $320,000.00.
- Principal and interest = L × r × (1 + r)^n ÷ ((1 + r)^n − 1) = $2,022.62 over 360 months at 6.5%.
- Property tax = price × 1.1% ÷ 12 = $366.67; insurance = $1,500.00 ÷ 12 = $125.00; other monthly costs = $0.00.
- Total monthly payment = $2,514.28. Total interest over the loan = $408,142.36.
Important notes
- Mortgage insurance may be required if the down payment is small, and is not included. Tax and insurance rates depend on your location.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is a mortgage payment calculated?
Principal and interest = L × r × (1 + r)^n ÷ ((1 + r)^n − 1), with taxes and insurance added on top.
What is escrow?
An account held by the lender to pay your property tax and insurance, funded by part of each monthly payment.
Is a 15-year or 30-year mortgage better?
A 15-year term costs much less interest but has a higher payment. A 30-year term has a lower payment and higher total interest.
Related calculators
- Home Loan EMI CalculatorCalculate your home loan EMI, total interest and repayment over 5 to 30 years, with a yearly principal and interest schedule.
- Mortgage Payoff CalculatorSee how extra monthly or one-time payments shorten your mortgage and how much interest you save.
- Home Affordability CalculatorEstimate the home price you can afford from your income, existing EMIs, interest rate, tenure and down payment.
- Down Payment CalculatorFind the down payment on a home, the loan and EMI that remain, and the monthly saving needed to reach the down payment.
Explore more in Real Estate & Property Calculators.