Fixed Rate Mortgage Calculator

How to calculate your fixed rate mortgage payment

We've provide sample numbers so you can see how the calculator works before entering your own details.

1. Purchase price: Enter the total cost of the home you’re buying. This sets the starting point for calculating your loan amount.
2. Property tax (yearly): Input the estimated annual property taxes owed on the home. This is added into your monthly mortgage payment to give you an estimate of housing costs.
3. Down payment: Enter the amount of money you pay upfront toward the purchase price. A higher down payment lowers your loan balance, monthly payment and may eliminate the need for PMI.
4. Interest rate: Enter the annual percentage rate charged by your lender for borrowing money. Even small changes in the rate can significantly affect your monthly payment.
5. Loan term: Key in the length of time you’ll take to repay the loan (commonly 15, 20 or 30 years). Shorter terms mean higher monthly payments but less interest paid over time, while longer terms lower monthly payments but increase total interest.
6. Credit score: Enter your latest credit score. This number expresses and estimates your creditworthiness. Lenders use your credit score to help determine your interest rate and loan eligibility. Higher scores typically qualify for better rates.
7. Click calculate

How to read your fixed rate mortgage payment results

Once you enter your information, the calculator provides an estimate of your monthly mortgage payment, broken into key parts. Here’s how to interpret what you see:

• Monthly payment (top number):
  This is your estimated monthly cost for the home loan. It combines your principal, interest, property taxes, insurance and (if applicable) PMI.
• Payment breakdown (chart + labels):
  The pie chart and itemized list show how your estimated monthly payment is divided:
  • Principal & interest: The portion of your payment that goes toward paying back the amount you borrowed and the lender’s interest charge.
  • Taxes & insurance: An estimate of annual property taxes and homeowners insurance spread across your monthly payments.
  • PMI (private mortgage insurance): Extra cost that may apply if your down payment is less than 20% of the purchase price. If not required, this will show $0.
• Visual proportions: The chart gives a quick snapshot of which portion of your payment goes to housing costs versus taxes, insurance or PMI.

Tip: Use this breakdown to understand where your money is going each month and how changes in loan amount, down payment or interest rate could impact your total costs.

What’s not included in your estimate

The calculator provides a helpful snapshot of your monthly mortgage payment, but it doesn’t capture every cost of homeownership. Keep in mind that these additional expenses may affect your budget:

• Homeowners Association (HOA) fees: If the property is part of an HOA, you may need to pay monthly or annual dues.
• Utilities: Costs for electricity, water, gas, internet, and other services aren’t included in your mortgage estimate.
• Home maintenance & repairs: Routine upkeep (like lawn care or roof repairs) and unexpected fixes are part of owning a home.
• Closing costs: One-time fees at the start of your mortgage, including appraisal, title, and loan origination charges, are not shown here.
• Future tax or insurance changes: The calculator uses your inputs for property taxes and homeowners insurance, but actual costs may rise over time.

Tip: Think of your calculator results as your core mortgage payment. Always budget extra for these additional costs so you have a realistic view of what you can afford.

When should you use this fixed mortgage rate calculator?

This mortgage calculator is most useful any time you want to estimate what your monthly housing payment might look like before you apply for a loan. Consider using it when:

• Planning a home purchase: Enter the purchase price, down payment and loan term to see how much house you can comfortably afford.
• Comparing loan options: Test different loan terms (15, 20 or 30 years) or interest rates to understand how they change your monthly payment.
• Budgeting for homeownership: Factor in taxes, insurance and potential PMI to get a realistic view of your total monthly cost.
• Exploring “what-if” scenarios: Adjust the down payment or interest rate to see how much you could save with a larger upfront payment or improved credit score.
• Preparing to talk to a lender: Use the calculator results as a starting point for conversations with a loan officer about loan programs and affordability.

Tip: Run several scenarios before shopping for homes. Knowing how small changes in price, rate or down payment affect your monthly budget helps you make more confident decisions.

Glossary of common mortgage terms

These are the terms homebuyers most often encounter during the mortgage application and homebuying process:

Amortization

The process of spreading out loan payments over time. These are usually monthly payments that reduce both the interest and the principal.

Annual percentage rate (APR)

The cost of credit expressed as a yearly interest rate charged on loans including fees and additional costs. 

Appraisal

A professional estimate of a property’s market value, usually required by lenders before approving a loan.

Closing Costs

Fees and expenses paid at the closing of a real estate transaction, such as appraisal fees, title insurance, taxes and lender charges.

Escrow account

An account that holds funds for specific purposes, such as property taxes or homeowner’s insurance for a mortgage.

Fixed-Rate Mortgage

A loan with an interest rate that stays the same for the entire term, keeping your monthly principal and interest payments consistent.

Loan-to-Value Ratio (LTV)

The ratio of your loan amount to the appraised value (or purchase price) of the home. A lower LTV often helps you qualify for better rates and avoid PMI.

Mortgage Insurance (PMI or MIP)

Insurance that protects the lender if you default on the loan. Private Mortgage Insurance (PMI) applies to conventional loans with less than 20% down; Mortgage Insurance Premium (MIP) applies to FHA loans.

Principal

The amount of money you borrow, not including interest or fees.

Underwriting

The lender’s process of evaluating your income, assets, credit and property details to decide whether to approve your loan.

Why is my actual mortgage payment different from the calculator estimate?

Your real mortgage payment may vary from what you see in the calculator for several reasons:

1. Taxes & insurance differences: The calculator uses the numbers you entered, but your actual property taxes or homeowners insurance could be higher or lower once determined by your lender or local authorities.
2. PMI requirements: Whether you need private mortgage insurance depends on your down payment and loan type. The calculator may estimate this differently than your lender.
3. Interest rate variations: Rates depend on your credit profile, market conditions and the type of loan you choose. Your lender may offer a different rate than the one you entered.
4. Escrow setup: Some lenders require an escrow account for taxes and insurance, which can slightly change the way your monthly payment is structured.
5. Other costs: Fees like HOA dues, special assessments or flood insurance aren’t factored into the calculator.

Bottom line: Use the calculator as a planning tool, but expect your official payment to be based on your lender’s final loan terms and property-specific details.

Related tools and mortgage calculators

Want to explore more ways to prepare for a home purchase? Try our Closing Cost Estimator or evaluate your savings goals with our CD Maturity Calculator or Bank Interest Rates Calculator to plan for a future purchase.