Mortgage Cost Calculator
Estimate your monthly mortgage payments and total loan cost
Loan Amount: -
Loan Term: - years
Interest Rate: -%
Total Cost: -
Chart will appear here after calculation
■ Principal
■ Interest
■ Taxes & Insurance
1. Introduction
A Mortgage Cost Calculator helps you estimate your total monthly payment and overall loan costs when purchasing a home or refinancing. This essential financial tool calculates:
Monthly principal & interest
Property taxes
Homeowners insurance
PMI (if applicable)
Total interest paid over loan life
Amortization schedule
2. Key Inputs Needed
| Input | Description | Typical Values |
|---|---|---|
| Home Price | Purchase price of property | $200,000-$1M+ |
| Down Payment | % or $ amount paid upfront | 3%-20%+ |
| Loan Term | Duration of mortgage | 15, 20, or 30 years |
| Interest Rate | Annual percentage rate (APR) | 5.5%-8% (2024 rates) |
| Property Tax | Annual tax rate | 0.5%-2.5% of value |
| Home Insurance | Annual premium | $800-$2,500 |
| PMI | If down payment <20% | 0.5%-1.5% of loan |
| HOA Fees | Monthly (if applicable) | $0-$500+ |
3. How Monthly Payments Are Calculated
A. Principal & Interest Formula
Where:
M = Monthly payment
P = Principal loan amount
i = Monthly interest rate (annual rate ÷ 12)
n = Number of payments (term in years × 12)
B. Full Monthly Payment Components
Principal & Interest (calculated above)
Property Taxes (annual ÷ 12)
Home Insurance (annual ÷ 12)
PMI (if applicable)
HOA Fees (if applicable)
4. Example Calculation
Scenario:
Home price: $400,000
Down payment: 20% ($80,000)
Loan amount: $320,000
Interest rate: 6.5%
Term: 30 years
Property tax: 1.2% ($4,800/year)
Insurance: $1,200/year
No PMI (20% down)
No HOA
Results:
Principal & Interest: $2,023/month
Property Tax: $400/month
Insurance: $100/month
Total Payment: $2,523/month
Total Interest Paid: $408,142 (over 30 years)
