How to Use This Calculator
- Enter the home price you're considering
- Input your down payment amount
- Select your loan term (typically 15 or 30 years)
- Enter the current interest rate
- Add annual property tax and insurance costs
- Include PMI if your down payment is less than 20%
- View your complete monthly payment breakdown
How Mortgage Calculator Works
This comprehensive calculator helps you understand your complete mortgage payment breakdown, affordability, and long-term financial impact.
Loan Amount = Home Price - Down Payment
This is the principal amount you'll be borrowing from the lender.
Down Payment % = (Down Payment ÷ Home Price) × 100%
Determines if PMI is required and affects your loan terms.
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where P = Principal, r = Monthly Interest Rate, n = Total Number of Payments
Monthly Interest Rate = Annual Rate ÷ 12
Converts the annual interest rate to a monthly rate for calculations.
Total Monthly Payment = Principal & Interest + Property Tax + Insurance + PMI
This is your complete monthly housing payment including all costs.
Total Interest = (Monthly Payment × Total Payments) - Loan Amount
Shows the total amount of interest you'll pay over the loan term.
Total Cost = (Total Monthly Payment × Total Payments) + Down Payment + Closing Costs
This is the complete cost of homeownership including all payments, down payment, and closing costs.
PMI = Required if Down Payment < 20% of Home Price
Private Mortgage Insurance is typically required when putting less than 20% down.
Debt-to-Income Ratio = ((Total Monthly Payment + Monthly Debts) ÷ Monthly Income) × 100%
Lenders typically prefer DTI ratios below 43% for conventional loans.
Housing Ratio = (Total Monthly Payment ÷ Monthly Income) × 100%
Shows what percentage of your income goes toward housing costs.
Annual Tax Savings = (Annual Interest × Federal Tax Rate) + (Annual Interest × State Tax Rate)
Calculates potential tax savings from mortgage interest deduction.
Prepayment Impact: Extra payments reduce principal, saving interest and time
Additional payments are applied directly to principal, reducing total interest paid.
Amortization Schedule: Shows yearly breakdown of payments, principal, interest, and remaining balance
Helps visualize how your loan balance decreases over time and how payments are allocated.