TheFreeTool

Mortgage Calculator

Enter the home price, your down payment, the interest rate and the loan term. You will see the monthly payment, split into principal and interest, and property tax and insurance.

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Good to know

This is an estimate for general information. It is not tax, legal or financial advice. Your payslip can differ because of tax codes, credits, local taxes, benefits and your employer's rules. Check official guidance or ask a qualified adviser.

What it does

  • Down payment as a percentage of the price
  • Principal and interest, plus yearly property tax and insurance
  • Loan amount and total interest over the term
  • Any currency from the currency menu

How to use it

  1. Enter the home price and the down payment percentage.
  2. Enter the interest rate and the loan term in years.
  3. Add the yearly property tax rate and insurance, then read the monthly payment.

What makes up a monthly mortgage payment?

The main part is principal and interest. The loan amount is the price minus your down payment, repaid in equal monthly payments at a fixed rate. On top of that, many lenders collect property tax and home insurance each month, so the payment you actually make is higher than principal and interest alone.

This calculator does not include private mortgage insurance, HOA fees or closing costs. A bigger down payment lowers the loan and can lower your rate. For the UK, see our mortgage overpayment calculator.

Example

A $400,000 home with 20% down at 6.5% over 30 years means a $320,000 loan. Principal and interest are about $2,022.62 a month. With 1.2% property tax ($400 a month) and $1,200 insurance ($100 a month), the total is about $2,522.62 a month. Total interest over 30 years is about $408,000.

Questions people ask

How much should I put down?
Many buyers put down 20% to avoid extra mortgage insurance, but smaller down payments are common. It depends on your savings and the lender.
Is the rate fixed?
Yes. The calculator assumes one fixed rate for the whole term.
What is left out?
Private mortgage insurance, HOA fees, closing costs and any change in tax or insurance over time.

Disclaimer

This tool is for general information only. It is not financial, tax, investment or legal advice, and results are estimates that may differ from your bank, lender or tax authority. Rates, limits and tax rules change. Bank and brand names are used only to describe what the tool does; they belong to their owners and we are not affiliated with them. Check the figures with a qualified professional or your provider before you decide. You use this tool at your own risk, and TheFreeTool is not liable for any loss that follows. Read the full disclaimer

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