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Simple Mortgage Calculator

Our simple mortgage calculator will show you your estimated monthly mortgage payment based upon the value of the home you want to buy, your down payment amount, and the interest rate and terms of the loan. This calculator shows how much home you can afford given your monthly income.

About Your Mortgage
  • The selling price of the financed property.
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Compare current mortgage rates

How does the mortgage calculator work?

Usually, the amount of money of you borrow to buy a home is nearly equal to the purchase price of the home minus your down payment. The other factors that will affect your mortgage payment include the interest rate and the length (term) of your loan.

From here you can get an estimated monthly loan payment, but that number may be deceptively low. That’s because many home buyers must also include insurance and property taxes in their monthly mortgage payment. (The lender collectors these funds each month and holds them in escrow until their actual due date).

Private mortgage insurance

A “conventional” mortgage is a loan for no more than 80 percent of the property value. Typically, this requires a 20 percent down payment. If you only put down 10 percent, 5 percent or 3.5 percent (the minimum required for an FHA loan), your lender may require that you pay private mortgage insurance (PMI) until your loan-to-value ratio (LTV) drops below 80 percent.

Our mortgage calculator automatically estimates PMI if you enter a downpayment that is less than 20 percent of the home value.

Property taxes

Property tax rates vary dramatically; we use a middle-of-the-road estimate of 1.5 percent of your home value per year.

Homeowners insurance

Our calculation does not account for homeowners insurance, which may or may not be rolled into your escrow account and monthly mortgage payment. Typically, however, your annual homeowner’s insurance premium is a modest amount that will only add $50 – $100 to your monthly payment.

One great way of making sure you’re paying the lowest homeowner’s insurance rates is by utilizing the search tool at Policygenius, an insurance aggregator. They’ll show you the best rates all in one place after you fill out a simple application.

What’s next

Read more about how to get approved for a mortgage, review our pre-approval checklist or get pre-approved online with fast quotes from up to five competing banks.

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