Use our simple mortgage calculator to estimate your monthly payment, figure out the true cost of a home over time, and explore ways to improve your loan options. Then, install an easy-to-use money management app to get a bird’s-eye view of your financial situation, so you can make more informed decisions about your money.
This mortgage calculator can help you estimate monthly payments for a house you’d like to buy. To use it, enter the home price, your anticipated down payment, the mortgage terms, and other recurring costs like property taxes, insurance, and HOA fees.
We’ll show you a summary of your approximate monthly home loan payments, alongside a cost breakdown and lifetime loan summary, which is the total amount you can expect to pay over time, including interest and fees, given the information you provided.
Your monthly mortgage payment comprises more than just the loan repayment. It also covers interest, taxes, insurance, and sometimes HOA fees. Here’s an explanation of typical house payment components.
The loan principal is the portion of your monthly mortgage payment that goes toward paying down the original loan balance.
Interest
Interest is the portion of your monthly mortgage payment that covers the cost of borrowing the loan from your lender.
In the U.S., mortgage interest rates generally fall between 5% and 8% for a 30-year fixed loan, but numbers vary with the market.
Local governments charge property taxes based on your home’s value. These are often included in your monthly mortgage payment through an escrow account, where your lender collects a portion each month and pays the tax bill on your behalf when it’s due.
Property taxes help fund local public schools, police, and fire departments, infrastructure maintenance, and other public services.
Home insurance
Homeowners insurance protects your property against damage or loss. Lenders typically require it as part of your mortgage.
Many factors influence the cost of home insurance, including location (areas prone to natural disasters have higher premiums), home value, your home’s condition, safety features, and more.
Private mortgage insurance (PMI) or a mortgage insurance premium (MIP) is a fee that protects the lender (not you) if you stop making payments.
It’s typically required if you have a low down payment, which increases your monthly cost. PMI can usually be canceled once you reach 20% equity in your home.
HOA fees
If your home is part of a homeowners association, you may have to pay monthly dues for shared amenities and community maintenance.
HOA fees can be as low as $100–$200 for basic services like landscaping. On the higher end, however, they can exceed $1,000 per month and cover amenities like security, pools, gyms, and concierge services.
Here’s the basic formula used to estimate monthly mortgage payments, along with an explanation of the variables.
M |
Total monthly mortgage payment: The amount you pay each month toward the loan (not including taxes, insurance, and fees). |
|---|---|
P |
Principal loan amount: The total amount you borrow from a lender to purchase your future home. |
r |
Monthly interest rate: Your interest rate divided by 12. Lenders usually provide an annual figure, so you’ll need to divide that by 12 for each month in the year. For example, if your interest rate is 6% per year, your monthly rate would be 0.5% (0.06 ÷ 12). |
n |
Number of payments: The total number of monthly payments, calculated as 12 x your loan term in years. So, a 30-year loan would have 360 payments. |
This formula models your monthly principal and interest (P&I) payments only. It doesn’t include additional costs like insurance, taxes, and fees.
Mortgages aren’t set in stone. You can lower your monthly mortgage payments by improving your credit score (thereby unlocking better loan terms), paying a larger down payment, opting to pay off your home loan over a longer period, or shopping around for lenders that offer lower interest rates.
A higher credit score can qualify you for a lower interest rate on your home loan.
A larger down payment lowers your loan amount, which decreases your monthly payment.
Extending your loan term spreads payments over more years, reducing monthly payments but increasing the total interest paid.
Comparing lenders can help you find a lower interest rate. This directly lowers your monthly cost.
If you’ve paid down enough of your loan, or made a large down payment you may not need to pay private mortgage insurance.
Lowering your property tax assessment may reduce the taxes included in your monthly mortgage payment.
A mortgage is a potentially life-changing investment, but it can eat up a big part of your monthly income. As a new homeowner, staying on top of your budget requires careful planning and a clear view of your costs and expenses.
Norton Money helps you monitor your finances with a simple, all-in-one dashboard, giving you a bird’s-eye view of your financial situation. Keep tabs on all your accounts in one place, check your credit score, and track where your money is going, all from a single app.
