Mortgage Calculator

How to Use the Mortgage Calculator (Step-by-Step)

Enter your loan details into the calculator above to instantly generate a mortgage estimate. Adjust values like home price, down payment, interest rate, and loan term to see how your monthly payment changes.

Our home loan calculator is designed to give you a fast and realistic starting point — helping you plan your budget and understand affordability before moving forward with financing.

Using the monthly mortgage estimator is simple:

1. Enter the purchase price of the property.

2. Add your down payment amount or percentage.

3. Select your loan term (for example, 15 or 30 years).

4. Enter an estimated interest rate.

5. Add taxes, insurance, and other costs if available.

6. Review your estimated monthly payment and total loan costs.

Try adjusting one variable at a time — such as rate or term — to see how even small changes impact your payment.

Mortgage Payment Breakdown Explained

Understanding what makes up your payment helps you make smarter borrowing decisions.

Principal

Principal is the amount you borrow. Each payment gradually reduces this balance over time.

Interest

Interest is the cost of borrowing money. Early in a loan, a larger portion of your payment goes toward interest.

Property Taxes & Insurance

Many borrowers are surprised by how much these expenses add to the monthly payment. These costs vary depending on property location and value.

PMI (Private Mortgage Insurance)

If your down payment is below a certain threshold, lenders may require mortgage insurance, which increases monthly costs until sufficient equity is built.

Common Mistakes When Using Mortgage Calculators

A mortgage estimate tool is extremely useful — but only when used correctly. Some common mistakes include:

• Using an interest rate that is too low compared to current market conditions

• Forgetting to include taxes and insurance

• Assuming the estimate equals lender approval

• Ignoring closing costs and upfront expenses

• Comparing loan options based only on monthly payment instead of total cost

Use this calculator as a planning tool rather than a final quote.

How Interest Rate & Loan Term Affect Your Payment

Even small changes in rates or loan duration can dramatically impact affordability.

A shorter loan term may increase monthly payments but often saves significant money over time. Use this loan amortization calculator to compare options before making a decision.