How to use this calculator
Estimate a fixed-rate mortgage payment and separate the loan payment from the other costs of owning a home. Compare scenarios using the same home price, term and cost assumptions so that a lower quoted payment does not hide a longer repayment period.
Principal, interest and housing costs
The loan principal is home price minus down payment. Monthly principal and interest follow P × r ÷ [1 − (1 + r)^−n], where r is the nominal annual interest rate divided by 12 and n is the number of monthly payments. At zero interest, the payment is simply P ÷ n.
Property tax and insurance percentages are applied to home value and divided by 12. HOA charges are added separately. The first-payment breakdown shows interest on the opening loan balance; later payments gradually shift toward principal.
What to check before comparing mortgages
Replace preset tax and insurance rates with estimates for the specific property. Mortgage insurance is a simplified 1% annual estimate above the selected threshold; actual premiums and loan-program rules differ.
The affordability estimate uses illustrative housing and total-debt ratios, not lender approval. Closing costs, program fees, adjustable rates and future changes in insurance or taxes are excluded. Extra principal payments can shorten the schedule without changing the original scheduled installment.
Example: a $200,000 loan
A $200,000 principal at 6% nominal annual interest over 30 years gives a monthly principal-and-interest payment of $1,199.10. Taxes, insurance, mortgage insurance and HOA charges must be added to estimate the full housing payment.