Mortgage Calculator
Monthly payment breakdown
Based on national average rates
How to use this calculator
Here’s how to use our mortgage calculator to estimate your potential monthly payments on a fixed-rate mortgage:
- 1
Enter your home price. Input the price of the home you’re buying (or the current value of your home if you’re refinancing).
- 2
Enter your down payment — the amount you plan to put toward the purchase upfront. The remaining amount becomes your loan principal.
- 3
Select your loan term (30, 20, or 15 years) and enter your annual interest rate.
- 4
Optionally add property taxes, homeowner’s insurance, and HOA fees for a more accurate monthly total.
- 5
Click Update to see your estimated monthly payment and full payment breakdown.
Our calculator also includes rough estimates of property taxes, homeowners insurance and homeowners association fees, but keep in mind that these figures vary widely by location. You can edit them to match your specific situation.
Factors that affect your mortgage payment
Understanding what drives your total monthly mortgage payment is the first step toward confident homeownership. Our calculator simplifies complex financial variables to help you visualize your future financial commitment.
Home price & down payment
These two figures determine your total loan principal. A larger down payment not only lowers your monthly obligation but can also help you avoid private mortgage insurance (PMI).
Interest rate
Your rate directly affects how much you pay each month. Even a 0.5% difference on a $350,000 loan translates to roughly $100/month. Rates vary based on your credit score, loan type, and market conditions.
Loan term
A 30-year loan spreads payments over more months, keeping each payment lower — but you’ll pay more in total interest. A 15-year term means higher monthly payments but significantly less interest paid overall.
Property taxes & insurance
Most lenders collect property taxes and homeowners insurance as part of your monthly payment via an escrow account. These costs vary significantly by location and home value.
Mortgage calculator formula
To provide a transparent estimate, our calculator uses a standard amortization formula. This logic ensures your principal and interest are spread evenly across the duration of the loan so your base payment stays consistent each month.
Understanding your results
Once you click “Update,” the numbers on the screen represent more than just a monthly bill — they are a snapshot of your future financial flexibility. Your results are typically divided into three core areas:
- Principal & Interest — the base loan payment determined by your rate and term.
- Taxes & Insurance — property tax and homeowner’s insurance estimates collected via escrow.
- Total Monthly Payment — the full amount you’d pay each month including all costs.
How much house can you afford?
If you’re not sure how much of your income should go toward housing, start with the 28/36 rule — spend no more than 28% of your gross monthly income on housing costs and no more than 36% on total debt. For example, if you make $60,000/year ($5,000/month), you’d aim to keep housing costs at or below $1,400/month.
Compare top mortgage lenders
BankrateCalc scores and verified consumer reviews — find the lender that fits your needs.
What to consider next
Once the numbers are in front of you, the transition from calculating to closing depends on how those results align with your broader financial life. Before you reach out to a lender, reflect on these three key factors:
Your credit score
A higher score typically earns you a lower rate. Check your score before applying — even a 20-point improvement can save thousands over the life of the loan.
Your debt-to-income ratio
Lenders look at your total monthly debt versus gross monthly income. A DTI below 36% puts you in the strongest position.
Your savings cushion
Beyond the down payment, keep 3–6 months of expenses in reserve. Lenders and life both appreciate a safety net.
If the payment feels like a stretch, consider taking it for a financial test drive. For three months, put the difference between your current rent and this projected mortgage payment into savings. If it doesn’t strain your budget, you’re likely ready.
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