Mortgage Calculator
Use our smart mortgage calculator to estimate monthly payments, compare mortgage rates, and plan your home loan with confidence.
This calculator provides estimates for informational purposes only.
Actual loan terms and rates will vary based on your financial situation and lender policies.
Our mortgage calculator helps you estimate your monthly mortgage payments, including interest, taxes, and insurance. You can also add extra payments or adjust for annual increases in homeownership costs. This tool is designed primarily for U.S. home buyers and homeowners.
Mortgage Calculator
A mortgage is a type of loan used to buy real estate, typically a home. With a mortgage, a lender provides the money to help a buyer purchase a property, and the buyer agrees to repay the loan over time—usually 15 or 30 years in the U.S. Monthly mortgage payments include the loan principal (the amount borrowed), interest (the cost of borrowing), and often property taxes and insurance through an escrow account. Until the loan is fully paid off, the buyer doesn’t fully own the home. The most popular option is a 30-year fixed-rate mortgage, which makes up the majority of home loans in the U.S. Most Americans rely on mortgages to buy homes, and using a mortgage calculator can help estimate monthly payments and total loan costs.
Mortgage Calculator Components
A mortgage calculator breaks down key elements to help you understand your monthly mortgage payment. These components include:
- Loan Amount – The total amount borrowed to buy your home.
- Interest Rate – The mortgage interest rate applied to the loan.
- Loan Term – The length of the mortgage, usually 15 or 30 years.
- Property Taxes – Estimated annual property taxes divided into monthly payments.
- Homeowners Insurance – Insurance costs that protect your home, often added to your monthly mortgage.
- Private Mortgage Insurance (PMI) – Required if your down payment is less than 20%.
- HOA Fees – If applicable, the monthly homeowners association fees.
- Extra Payments – Any additional payments you plan to make toward the loan principal.
Using a mortgage calculator helps you estimate your total monthly payment and budget more effectively when shopping for a home loan.
Costs Associated with Home Ownership and Mortgages
When using a mortgage calculator to estimate your monthly mortgage payment, it’s important to understand that owning a home involves more than just repaying your home loan. There are many ongoing expenses tied to homeownership—some monthly and others occasional. These are generally grouped into two categories: recurring and non-recurring costs.
Recurring Costs
Recurring costs continue for the life of your mortgage and often increase over time due to inflation. A good mortgage payment calculator should allow you to account for these costs for a more accurate estimate. Most home loan calculators include a section for these under “Include Options Below” or “More Options”.
Here are the key recurring costs:
Property Taxes: These are annual taxes paid to local governments and are typically about 1.1% of your property’s value in the U.S. Property tax rates vary by city and state.
Home Insurance: This protects your home from damages and can include liability coverage. Premiums depend on location, property condition, and coverage level.
Private Mortgage Insurance (PMI): If your down payment is under 20%, most lenders require PMI until your loan-to-value ratio (LTV) drops below 80%. PMI can cost between 0.3% and 1.9% of your loan amount annually.
HOA Fees: If your property is in a community with a homeowner’s association, you may pay annual or monthly fees for maintenance and community amenities. HOA fees typically cost under 1% of the property value annually.
Other Costs: These include utilities, repairs, and regular home maintenance. On average, homeowners spend at least 1% of their home’s value each year on upkeep.
A complete mortgage calculator will factor in these elements to give you a clearer view of the true cost of owning a home. Whether you’re a first-time home buyer or comparing current mortgage rates, understanding these costs helps you plan better and avoid surprises.
Early Repayment and Extra Mortgage Payments
Paying off your home loan early, whether partially or in full, can save you thousands in interest and help you become debt-free faster. Many homeowners consider early repayment to reduce interest, refinance, or prepare for selling their property. A mortgage calculator can help estimate the impact of extra mortgage payments—monthly, yearly, or one-time—on your loan payoff and interest savings.
Popular Early Mortgage Repayment Strategies
There are three common ways to pay off your mortgage faster. These methods help reduce your total interest and shorten the loan term.
Extra Monthly Payments
Adding extra money to your regular mortgage payment lowers your loan balance faster. Early payments mostly cover interest, so even small additional amounts can make a big difference over time. Use a mortgage calculator to see the long-term benefits of consistent extra payments.Biweekly Payments
Instead of one monthly payment, you make half-payments every two weeks. This results in 13 full payments a year instead of 12, helping you pay off the mortgage faster. A mortgage payment calculator can show how biweekly payments affect your loan.Refinancing to a Shorter Term
Refinancing your mortgage to a 15-year loan usually offers lower interest rates. While monthly payments increase, you save more in interest and pay off the mortgage faster. Keep in mind that refinancing involves closing costs and fees.
Why Make Extra Mortgage Payments?
Many homeowners choose to make extra payments for several reasons:
Lower total interest costs
Shorter repayment period
The satisfaction of being mortgage-free sooner
Important Considerations Before Paying Early
Early repayment isn’t always the best financial move. Consider the following:
Some loans have prepayment penalties—check your agreement
You might lose investment opportunities if interest rates on investments are higher than your mortgage rate
Paying too much into your mortgage could leave you short on emergency funds
Lower interest payments may reduce your tax deductions if you itemize
Plan Ahead with a Mortgage Calculator
Whether you’re making occasional extra payments or switching to biweekly payments, a mortgage calculator helps you understand the financial impact. It’s a valuable tool for smart home loan planning and can help you make the best decision for your budget and goals.
Brief History of Mortgages in the U.S.
In the early 1900s, buying a home was difficult because borrowers needed to save large down payments—often 50%—and take short-term loans of 3 to 5 years with a large balloon payment at the end. Under these conditions, only 40% of Americans could afford a home, and during the Great Depression, about one-fourth of homeowners lost their properties.
To improve homeownership, the U.S. government created the Federal Housing Administration (FHA) and Fannie Mae in the 1930s. These agencies introduced 30-year mortgages with lower down payments and standardized construction rules, making home loans more affordable and accessible.
After World War II, these programs helped returning soldiers buy homes, sparking a construction boom. The FHA also supported borrowers through economic challenges like the 1970s inflation crisis and 1980s energy price drops.
By 2001, the U.S. homeownership rate reached a record 68.1%, boosted by stable mortgage rates and accessible home loans.
During the 2008 financial crisis, government agencies stepped in again. Fannie Mae faced massive losses and was taken over by the federal government but became profitable by 2012. The FHA increased its mortgage backing, supported by the Federal Reserve, helping stabilize the housing market by 2013.
Today, both the FHA and Fannie Mae continue to insure millions of homes, supporting affordable mortgages and helping Americans achieve homeownership.