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Understand your mortgage payment
Reviewed October 4, 2026. This guide describes the calculation available here. It is educational and does not assess whether a lender will approve you.
Start with principal and interest
Your loan amount is the purchase price minus the down payment. A conventional fixed-rate payment depends on that amount, the annual interest rate and the number of monthly payments. Amortization divides each payment between interest and principal; the balance changes over time.
Add the costs around the loan
Property tax, homeowners insurance and applicable mortgage insurance can add to your monthly outlay. HOA or condo dues may be paid separately. The calculator adds the amounts you supply and labels the result an incomplete subtotal when costs remain unknown.
A fixed interest rate does not freeze taxes, insurance or dues. Maintenance, utilities, closing costs and prepaid escrow also need a budget; this calculator does not include them.
Why your down payment matters
A larger down payment reduces the amount borrowed at the same price. Conventional loans with less than 20% down commonly require private mortgage insurance. The calculator does not invent a premium. It assumes no PMI at 20% down unless you supply one; confirm the actual loan terms with your lender.
Compare one change at a time
Enter your starting scenario, choose a category in the What-if Lab, then inspect the comparison before applying it. A lower payment does not by itself mean a cheaper loan. A shorter term can raise the payment while reducing total interest. The scenario cards rotate through a finite set of useful changes.
Test extra principal
The extra-payment test models a new fixed-rate loan with a constant additional amount going toward principal from the first payment. It compares interest and payoff time with the scheduled loan. It excludes prepayment charges, servicing rules, changes to PMI, taxes and insurance. Ask the servicer how to designate extra principal and check your loan for any penalty.
Check the Loan Estimate
Use your lender’s written Loan Estimate for loan terms, projected payments, closing costs and cash to close. A calculator result is not a quote or rate lock. The address field labels a scenario and does not retrieve property records.
Sources: CFPB mortgage payment calculation, CFPB total monthly payment, CFPB mortgage insurance, and CFPB Loan Estimate explainer.