How is the loan amount calculated?

The loan amount is the home price minus the down payment. That amount is what the interest and payments are based on.

Are property tax and insurance included?

Only if you enter them. When provided, they are added to the monthly payment. Total interest and total paid cover principal and interest only.

Is this an exact quote?

No. It is an estimate. Lenders may add fees, mortgage insurance and other costs that are not modelled here.

Finance Calculators

Mortgage Calculator

Calculate your mortgage payment, loan amount and total interest.

Free browser toolRuns in your browserNo sign-up

Home priceCurrencyDown payment

Interest rate (%)Term (years)

Annual property tax (optional)Annual home insurance (optional)Extra monthly principal (optional)

Monthly payment

$1,516.96

$240,000.00

Loan amount

$1,516.96

Principal and interest

$306,106.77

Total interest

$546,106.77

Total paid

Home purchase funding

Down payment $60,000.00Mortgage $240,000.00

The loan amount is the home price minus the down payment. Total interest and total paid cover the principal and interest only. Property tax and insurance, when entered, are added to the monthly payment.

Mortgage payment formula explained

The home price minus the down payment becomes the loan principal. Principal and interest use the amortizing-loan formula, while entered tax and insurance are added monthly.

Payment = P x r x (1 + r)^n / ((1 + r)^n - 1)

P: Home price minus down payment
r: Monthly mortgage rate
n: Total monthly payments

Worked example

A $300,000 home with $60,000 down at 6.5% for 30 years has principal and interest of about $1,517 monthly.

Practical tips

Budget beyond the loan
Allow for tax, insurance, maintenance, association fees and possible mortgage insurance.
Compare total interest
A shorter term costs more monthly but can save a large amount of interest.

About the Mortgage Calculator

The Mortgage Calculator works out your monthly home loan payment from the home price, down payment, interest rate and term.

The loan amount is the home price minus the down payment. It shows the principal and interest payment, total interest and total paid over the full term.

Optional property tax and home insurance are added to the monthly payment when you enter them, giving a fuller monthly cost. All maths runs in your browser.

Key features

Monthly payment and loan amount
Total interest and total paid
Optional property tax and insurance
Extra-principal payoff and interest savings
Exportable monthly mortgage schedule
Locale-aware currency formatting

How to use

1Enter the home price and choose a currency.
2Enter the down payment, interest rate and term.
3Optionally add annual property tax and home insurance.
4Read the monthly payment and cost breakdown.
5Test an extra monthly principal payment, then inspect or export the revised schedule.

Examples

Thirty-year mortgage

Input: USD 300,000 home, USD 60,000 down, 6.5% for 30 years

Output: USD 1,516.96 monthly principal and interest

The USD 240,000 loan produces about USD 306,106.77 in total interest before taxes, insurance and fees.

Frequently asked questions

How is the loan amount calculated?: The loan amount is the home price minus the down payment. That amount is what the interest and payments are based on.
Are property tax and insurance included?: Only if you enter them. When provided, they are added to the monthly payment. Total interest and total paid cover principal and interest only.
Is this an exact quote?: No. It is an estimate. Lenders may add fees, mortgage insurance and other costs that are not modelled here.

Open a related tool to prepare your files or refine the finished result.