Mortgage Calculator
Use the Haus Nerds Mortgage Calculator to quickly estimate your full monthly payment—including principal and interest—plus realistic estimates for property taxes, insurance, PMI, and HOA fees. Just enter the home price and down payment to see an itemized breakdown with your total monthly cost and full payment schedule. Adjust loan details like interest rate, term, and more to reflect your real-world scenario with better accuracy.
How to calculate mortgage payments
Your monthly house payment includes more than just repaying the loan you borrowed. The principal is the amount you borrowed and must repay, while the interest is what the lender charges you for borrowing that money.
For most homebuyers, the total monthly mortgage payment also includes homeowner’s insurance, property taxes, and possibly other costs like private mortgage insurance (PMI) and homeowners association (HOA) dues. If you have an escrow account, these extra costs are collected monthly and paid on your behalf by the lender when they come due.
Home price
This is either the amount you paid for your home or the estimated price of a home you’re looking to purchase.
Down payment
Most home loans require at least 3% down, though some programs allow 0% down. A 20% down payment can help you avoid private mortgage insurance and reduce your monthly payment. The more you put down, the less you borrow — and the lower your monthly obligation.
Loan program
Your loan term affects your monthly payment. Common choices include 30-year fixed, 15-year fixed, and 5-year adjustable-rate mortgages (ARMs). Shorter terms typically mean higher monthly payments but lower interest paid overall.
Interest rate
This is the annual cost of borrowing money, expressed as a percentage. Even small changes in the interest rate can have a big impact on your total monthly payment.
PMI
Private mortgage insurance is usually required when your down payment is less than 20%. This added monthly cost protects the lender and is based on your credit score and loan-to-value ratio.
Property taxes
These are based on your home’s assessed value. The annual tax estimate is divided by 12 and added to your monthly mortgage payment.
Home insurance
This is the annual cost of insuring your property, divided into monthly amounts. It helps protect you from losses due to fire, storms, liability claims, and more.
HOA dues
If your property is part of a homeowner’s association, you may pay monthly dues that cover amenities, exterior maintenance, and sometimes partial insurance. If not applicable, this cost is excluded from your calculation.
Mortgage payment equation
Principal: The amount of money you borrowed.
Interest: The cost of the loan.
Mortgage insurance: The mandatory insurance to protect your lender's investment of 80% or more of the home's value.
Escrow: The monthly cost of property taxes, HOA dues, and homeowner's insurance.
Payments: Multiply the years of your loan by 12 months to calculate the total number of payments. A 30-year term is 360 payments (30 years × 12 months = 360 payments).
Type of home loans to consider
The loan type you select affects your monthly mortgage payment. Haus Nerds will walk you through each option so you can match the loan type to your purchasing goals.
Conventional loan (conforming loan)
Conventional loans are backed by private lenders, like a bank, rather than the federal government. These loans often have stricter requirements around credit score and debt-to-income ratios. If you have excellent credit with a 20% down payment, this may be a great option, offering lower interest rates without private mortgage insurance (PMI). You can still get a conventional loan with less than 20% down, but PMI will apply.
FHA loan (government loan)
FHA loans are backed by the Federal Housing Administration. They tend to have looser credit requirements and allow for low down payments. However, FHA loans require mortgage insurance for the life of the loan.
VA loan (government loan)
VA loans are backed by the Department of Veterans Affairs and help eligible veterans buy homes with little to no down payment. These loans don’t require PMI, but they do include a funding fee, which can be rolled into the loan.
USDA loan (government loan)
USDA loans are designed to help low-to-moderate-income buyers purchase homes in eligible rural areas. These loans often require no down payment and don’t include monthly PMI, but they do carry an upfront funding fee.
Jumbo mortgages (non-conforming)
Jumbo loans are used when the loan amount exceeds local limits for conforming loans. These are not government-backed and typically require a higher credit score and a 20% down payment. They are designed for more expensive properties and carry competitive rates.
Mortgage options and terminology
In addition to loan types, it helps to understand a few important differences between mortgage programs and common terminology. This knowledge can help you choose the right loan for your goals and timeline.
Loan term
A mortgage loan term is the maximum length of time you have to repay the loan. Common mortgage terms are 30-year or 15-year. Longer terms usually mean lower monthly payments but higher total interest paid. Shorter terms help pay off your loan faster and cost less in the long run, but monthly payments are higher. You can also pay down your loan faster than the term by making additional monthly payments toward your principal.
Fixed rate vs adjustable rate
A fixed-rate mortgage means your interest rate stays the same for your entire loan term. An adjustable-rate mortgage (ARM) starts with a fixed rate for a set number of years and then adjusts annually. For example, a 5-year ARM might offer a low fixed rate for the first 5 years, followed by yearly adjustments. This option can be helpful if you plan to move or refinance before the rate changes.
Conforming loans vs non-conforming loans
Conforming loans follow limits and guidelines set by government-backed agencies. These loans typically offer more competitive rates and standardized terms. Non-conforming loans, by contrast, do not follow these limits and may be used for unique situations or larger amounts — such as jumbo loans. These tend to have more flexible guidelines but may come with higher interest rates or stricter qualification standards.
Start your home buying research with a mortgage calculator
A mortgage payment calculator is a powerful real estate tool that can help you do more than just estimate your monthly payments. Here are some additional ways to use it:
Assess down payment scenarios
Adjust your down payment size to see how much it affects your monthly payment. Would it be better to have more in savings after purchasing the home? Can you avoid PMI? Compare realistic monthly payments beyond just principal and interest.
Calculate mortgage rates
Modify the interest rate to evaluate the impact of even small rate changes. Consider how waiting to improve your credit score could lower your rate. The calculator helps you visualize long-term savings and payoff timelines.
Evaluate affordability
Fine-tune your numbers to better understand what monthly payment works for your budget, based on income, debt, and household goals.
Sample loan programs
Adjust the loan type or term to see how each affects your payment. This can help you compare loan options with different structures and interest rates.