APR Desk
APR Desk · Mortgage

Mortgage payment calculator

Principal and interest, plus the extras you type

A mortgage payment calculator finds the fully amortizing principal-and-interest payment on the amount you finance. Housing money is larger than that payment. Property tax, homeowners insurance, and HOA dues are dollars you already know or can look up, so this page adds only the amounts you type. It does not invent a tax rate or a mortgage-insurance premium.

Inputs

Result

Enter the price, down payment, APR, and term.

Disclaimer: This is an estimate of principal and interest, not a loan offer, closing disclosure, or tax bill. PMI, points, and prepaid items are not included.

Comparing the payment with take-home pay starts with the wage. Convert it on the ClearQuip hourly to salary calculator. A percent change in price is the percentage calculator.

How to use

  1. Enter the price and the down payment, either in dollars or as a percent of the price.
  2. Enter the APR and the term in years. A 30-year loan is 360 months; the form converts years for you.
  3. If you know this year’s property tax and insurance, enter the annual amounts. Enter HOA as a monthly dues figure. Leave any of them blank to treat them as zero.
  4. Press Calculate. The large number is principal and interest. The line under it adds the extras you typed. Reset clears the form.

How it's calculated

Amount financed = price − down payment
Monthly rate r = APR ÷ 100 ÷ 12
Payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Monthly tax = annual tax ÷ 12

The payment formula is the standard fully amortizing loan payment. It is the same formula the loan payoff calculator uses when you already know the term. Here the principal starts from a home price and a down payment, which a generic loan form does not ask for.

Tax and insurance are divided by 12 only so they sit next to a monthly payment. They are not escrowed, adjusted, or predicted. Private mortgage insurance is omitted on purpose. Whether you can afford the payment next to your pay is a separate sum; the ClearQuip hourly to salary calculator turns a wage into a monthly figure you can compare by hand.

Worked example

A $200,000 price with no down payment, 6 percent APR, and 30 years has a monthly rate of 0.005. The principal-and-interest payment is $1,199.10. Over 360 months the interest is the part of 360 payments that exceeds $200,000. Add $3,600 a year of tax ($300 a month) and $1,200 a year of insurance ($100 a month) and the monthly total you typed becomes $1,599.10 before any HOA.

Assumptions and sources

Interest is compounded monthly at APR divided by 12, which matches the fixed-rate mortgage payment people are usually shown. The formula is the closed-form annuity payment, equivalent to a month-by-month schedule. It assumes the rate never changes and that every payment is made. Your Loan Estimate can differ because of fees, mortgage insurance, and a different day-count. The $1,199.10 example is the formula result for those inputs, rounded to the cent.

FAQ

Does this include property tax?

Only if you type an annual tax amount. The calculator does not look up a county rate.

What is the difference between APR and the note rate?

APR folds certain finance charges into a yearly rate. This page uses the percent you enter as the rate for monthly interest. If your note rate and APR differ, decide which one you want the schedule to use and enter that percent.

Why is there no PMI line?

PMI depends on the loan program, the loan-to-value ratio, and a premium the insurer sets. Inventing that premium would be a guess. Add it yourself if you already have a quote.

Can I see the month-by-month table?

Use the amortization schedule for a year-by-year and month-by-month table, including an optional extra payment.

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