How it works
Subtract the down payment from the home price to obtain the loan principal. The fixed annual interest rate is divided by 12. Property tax and homeowners insurance are entered annually; PMI and HOA dues are entered monthly. The result separates the loan payment from the broader housing budget.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Home price | $400,000.00 | Required unit: $. Must be greater than zero. |
| Down payment | $80,000.00 | Required unit: $. Use a non-negative value. |
| Annual interest rate | 6.5 % | Enter the percentage as a number: for 15%, enter 15. Use the annual rate. Use a non-negative value. Allowed range: 0–100. |
| Loan term | 30 years | Required unit: years. Use a whole number. Must be greater than zero. Allowed range: 1–50. |
| Annual property tax | $4,800.00 | Required unit: $. Use a non-negative value. |
| Annual homeowners insurance | $1,500.00 | Required unit: $. Use a non-negative value. |
| Monthly mortgage insurance | $0.00 | Required unit: $. Use a non-negative value. |
| Monthly HOA dues | $0.00 | Required unit: $. Use a non-negative value. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Home price
- $400,000.00
- Down payment
- $80,000.00
- Annual interest rate
- 6.5 %
- Loan term
- 30 years
- Annual property tax
- $4,800.00
- Annual homeowners insurance
- $1,500.00
- Monthly mortgage insurance
- $0.00
- Monthly HOA dues
- $0.00
Complete example results
- Estimated monthly housing cost
- $2,547.62
- Principal & interest
- $2,022.62
- Property tax
- $400.00
- Homeowners insurance
- $125.00
- Mortgage insurance (PMI)
- $0.00
- HOA dues
- $0.00
- Loan principal
- $320,000.00
- Total loan interest
- $408,142.36
Reading the result
Match the rate period to the payment period. Fees and taxes absent from the inputs are not added automatically; compare totals with the same cost coverage.
Compare the loan payment with the housing budget
Principal and interest cover the loan. The broader estimate also includes the tax, insurance, PMI and HOA amounts you enter. HOA may be paid separately, so the displayed housing total need not equal the lender’s monthly bill.
How to compare 15, 20 and 30 years
Keep the price, down payment and assumed rate unchanged to isolate the effect of the term. Actual quotes may have different rates. The examples hold annual ownership costs constant and do not model PMI cancellation.
Compare different scenarios
Inputs held constant: Home price: 400,000 $ · Down payment: 80,000 $ · Annual interest rate: 6.5 % · Annual property tax: 4,800 $ · Annual homeowners insurance: 1,500 $ · Monthly mortgage insurance: 0 $ · Monthly HOA dues: 0 $.
| Loan term | Estimated monthly housing cost | Total loan interest |
|---|---|---|
| 15 years | $3,312.54 | $181,757.84 |
| 20 years | $2,910.83 | $252,600.17 |
| 30 years | $2,547.62 | $408,142.36 |
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
Is this payment a lender quote?
No. Interest, taxes and insurance are your assumptions. This model excludes closing costs, adjustable rates, extra payments and automatic PMI cancellation. HOA dues are generally paid separately from the mortgage.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: consumerfinance.gov
Data version: 2026-10-08 · Methods & accuracy