What this tool does
Estimate a fixed-rate mortgage payment and combine it with recurring property tax, insurance and association costs.
How to use it
- Enter the home price and down payment to determine the financed principal.
- Add the annual interest rate, term and optional recurring housing costs.
- Calculate and compare principal-and-interest with the estimated all-in monthly total.
Formula and method
For principal P, monthly rate r and n payments, payment = P × r × (1+r)^n ÷ ((1+r)^n−1). Annual tax and insurance are divided by 12, then monthly association costs are added.
Worked example
A 400,000 home with 80,000 down leaves a 320,000 loan. At 6% for 30 years, principal and interest are about 1,918.56 per month before tax, insurance and fees.
Common uses
- Testing purchase prices and down payments
- Comparing loan terms or interest-rate scenarios
- Separating debt payment from recurring housing costs
Limitations
The estimate assumes a fixed rate and regular monthly payments. It excludes closing costs, mortgage insurance unless entered elsewhere, changing taxes and premiums, rate adjustments, lender fees and local rules.
FAQ
Does the monthly total include every ownership cost?
No. Only the values entered for tax, insurance and recurring fees are added. Maintenance, utilities and transaction costs remain separate.
Why is a lender quote different?
A lender may use a different rate, payment date, compounding convention, fees, insurance or escrow assumptions.