Please enter valid positive numbers for all fields.
Principal & Interest:$0.00
Property Tax (Monthly):$0.00
Homeowner's Insurance (Monthly):$0.00
Total Monthly Payment:$0.00
Total Loan Amount:$0.00
Total Interest Paid:$0.00
Total Cost of Loan:$0.00
Understanding Your Mortgage Payment
Calculating your monthly mortgage payment is a critical first step in the home buying process. This Mortgage Payment Calculator helps you estimate not just the repayment of the loan itself, but also the carrying costs associated with homeownership, often referred to as PITI (Principal, Interest, Taxes, and Insurance).
What Goes Into Your Monthly Payment?
When you make a mortgage payment, your money is distributed into several buckets:
Principal: This portion goes directly toward paying down the loan balance. In the early years of a 30-year fixed mortgage, a smaller percentage goes to principal compared to interest.
Interest: This is the cost of borrowing money from your lender. Interest is calculated based on your remaining loan balance and your annual percentage rate (APR).
Property Taxes: Local governments assess taxes on property value to fund services like schools and roads. This calculator estimates the monthly portion of your annual tax bill.
Homeowner's Insurance: Lenders require insurance to protect the asset (your home) against damage from fire, theft, or weather.
How Interest Rates Affect Affordability
Even a small change in interest rates can significantly impact your monthly payment and the total cost of your home. For example, on a $300,000 loan, a 1% increase in interest rate can raise your monthly payment by hundreds of dollars and increase your total interest paid over 30 years by tens of thousands. Use the calculator above to compare scenarios by adjusting the "Interest Rate" field.
Tips for Lowering Your Mortgage Payment
If the estimated payment looks too high for your budget, consider these strategies:
Increase Your Down Payment: A larger down payment reduces the principal loan amount, thereby lowering monthly payments and total interest costs.
Improve Your Credit Score: A higher credit score often qualifies you for better interest rates.
Shop for Insurance: Homeowner's insurance premiums vary. Shopping around can save you money on your monthly escrow payment.
Challenge Property Tax Assessments: If you believe your home's assessed value is too high, you can appeal to your local tax authority to potentially lower your tax burden.
Loan Term: 15-Year vs. 30-Year
Choosing between a 15-year and a 30-year term is a tradeoff between monthly affordability and long-term savings. A 30-year term offers lower monthly payments, making the home more affordable day-to-day. However, a 15-year term typically comes with a lower interest rate and results in significantly less total interest paid over the life of the loan, though the monthly payments are higher.
function calculateMortgage() {
// Get Input Values
var homePrice = parseFloat(document.getElementById('homePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var loanTermYears = parseFloat(document.getElementById('loanTerm').value);
var annualInterestRate = parseFloat(document.getElementById('interestRate').value);
var yearlyPropertyTax = parseFloat(document.getElementById('propertyTax').value);
var yearlyHomeInsurance = parseFloat(document.getElementById('homeInsurance').value);
// Validation
var errorDiv = document.getElementById('errorMsg');
var resultsDiv = document.getElementById('resultsArea');
if (isNaN(homePrice) || isNaN(downPayment) || isNaN(loanTermYears) || isNaN(annualInterestRate) ||
isNaN(yearlyPropertyTax) || isNaN(yearlyHomeInsurance) ||
homePrice <= 0 || loanTermYears = home price
if (loanAmount 0 && annualInterestRate > 0) {
monthlyPrincipalInterest = loanAmount *
(monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) /
(Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else if (loanAmount > 0 && annualInterestRate === 0) {
monthlyPrincipalInterest = loanAmount / numberOfPayments;
}
var monthlyTax = yearlyPropertyTax / 12;
var monthlyInsurance = yearlyHomeInsurance / 12;
var totalMonthlyPayment = monthlyPrincipalInterest + monthlyTax + monthlyInsurance;
var totalCostOfLoan = (monthlyPrincipalInterest * numberOfPayments) + downPayment;
var totalInterestPaid = (monthlyPrincipalInterest * numberOfPayments) – loanAmount;
// Display Results
document.getElementById('resPrincipalInterest').innerHTML = '$' + formatMoney(monthlyPrincipalInterest);
document.getElementById('resTax').innerHTML = '$' + formatMoney(monthlyTax);
document.getElementById('resInsurance').innerHTML = '$' + formatMoney(monthlyInsurance);
document.getElementById('resTotalMonthly').innerHTML = '$' + formatMoney(totalMonthlyPayment);
document.getElementById('resLoanAmount').innerHTML = '$' + formatMoney(loanAmount);
document.getElementById('resTotalInterest').innerHTML = '$' + formatMoney(totalInterestPaid);
document.getElementById('resTotalCost').innerHTML = '$' + formatMoney(totalCostOfLoan);
// Show Results Area
resultsDiv.style.display = 'block';
}
function formatMoney(amount) {
return amount.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
}