Buying a home starts with one question: what will it cost each month? Our free home loan calculator gives you the answer in seconds. Enter the home price, your down payment, the interest rate and the loan term, and it works out your monthly principal and interest payment — plus optional property tax, home insurance and HOA dues, so you see the full monthly cost, not just the loan part.
Educational estimates only, not financial advice.
How to use this calculator
- Enter the home price — the full purchase price of the home.
- Enter your down payment — as an amount in dollars or as a percentage of the price. The calculator works out the loan amount (price minus down payment) for you.
- Enter the annual interest rate and the loan term — for example, 6.5% over 30 years.
- Add the optional costs — annual property tax, annual home insurance and monthly HOA dues. Leave them at zero if you only want the loan payment.
- Read the result — your total monthly payment at the top, then the breakdown (principal and interest, tax, insurance, HOA), total interest and total paid over the life of the loan.
How it works
The calculator uses the standard fixed-rate loan formula. Your monthly principal and interest payment is worked out from three things: the loan amount, the monthly interest rate (the annual rate divided by 12) and the number of payments (years × 12). The bank spreads your loan plus all the interest over every month of the term, so each payment is the same amount. Property tax and insurance are then added on top — annual amounts divided by 12 — along with any monthly HOA dues.
Worked example: a $300,000 home with a $60,000 down payment (20%), so the loan is $240,000. At 6.5% interest over 30 years (360 payments), principal and interest come to $1,516.96 a month. Add $3,600 a year in property tax ($300 a month) and $1,200 a year in insurance ($100 a month), and the full monthly payment is $1,916.96. Over the life of the loan you would pay $306,106.77 in interest, and $690,106.77 in total including taxes and insurance.
Frequently asked questions
What is a home loan calculator?
A tool that estimates your monthly mortgage payment from the home price, down payment, interest rate and term. Ours also adds taxes, insurance and HOA, which many simple calculators leave out.
How much home can I afford?
A common rule is to keep housing costs under about 28% of your gross monthly income, and all of your debts under about 36%. What matters most to a lender is your debt-to-income ratio — see our guide on how to calculate your debt-to-income ratio for a mortgage.
Should I put 20% down?
A 20% down payment avoids PMI (private mortgage insurance), which lowers your monthly cost. But smaller down payments are common for first-time buyers, and help exists — see first-time homebuyer down payment assistance.
Does this calculator include taxes and insurance?
Yes — enter the annual amounts and the calculator adds a twelfth of each to your monthly payment. The result shows each part separately, so you can see exactly what goes where.
Is the result exact?
It is an estimate. Lender fees, PMI, rate changes and yearly escrow adjustments can shift the real number. Use it to compare options, then confirm the final figures with your lender.
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