Use our free mortgage calculator to estimate your monthly payments including loan amount, interest rate, taxes, and insurance. Perfect for US home buyers.
Fill in the form and click calculate to see your results
A mortgage calculator is a financial tool that helps you estimate your monthly home loan payments. It calculates based on loan amount, interest rate, term length, and additional costs like property taxes and insurance.
Mortgage payments in the USA include principal, interest, property taxes (typically 0.5-2% annually), and homeowners insurance ($1,000-$3,000 yearly). Our calculator uses the standard amortization formula to give accurate estimates.
Using a mortgage calculator before buying helps you determine affordability, compare loan options, understand total costs over time, and plan your budget effectively. It's essential for making informed home-buying decisions.
When you're planning to buy a home in the United States, understanding your mortgage payment is crucial for financial planning. A typical mortgage payment consists of four main components, often referred to as PITI (Principal, Interest, Taxes, and Insurance).
Principal is the amount you borrowed to purchase the home. Each monthly payment reduces this balance. Interest is what the lender charges for lending you money, calculated as a percentage of your remaining loan balance. As of 2025, mortgage rates in the USA typically range from 6% to 8%, depending on market conditions and your credit score.
Property Taxes vary significantly by state and locality, ranging from 0.3% to over 2% of the home's value annually. States like New Jersey and Illinois have higher property taxes, while states like Hawaii and Alabama have lower rates. Homeowners Insurance protects your home from damage and disasters, typically costing $1,000 to $3,000 per year depending on location and coverage.
The loan term you choose dramatically affects your monthly payment and total interest paid. A 15-year mortgage has higher monthly payments but you'll pay significantly less interest over the life of the loan. A 30-year mortgage offers lower monthly payments but costs more in total interest. Many homebuyers also consider 20-year terms as a middle ground.
Our free mortgage calculator helps you compare these scenarios instantly. Simply adjust the inputs to see how different loan amounts, interest rates, and terms affect your monthly payment. This empowers you to make informed decisions about how much house you can afford and which loan structure best fits your financial situation.
This calculator provides estimates only and should not be considered as financial advice. Actual mortgage payments may vary based on additional factors not included in this calculation. Please consult with a licensed mortgage advisor or financial professional for official quotes and personalized advice before making any financial decisions.