How to Use the Mortgage Calculator

Using this mortgage calculator is simple. Follow these steps to estimate your monthly mortgage payment and total loan cost.

1. Enter the Home Price

Start by entering the total price of the property you want to buy.

For example, if the home costs $400,000, type 400000.

2. Add Your Down Payment

Enter the amount you plan to pay upfront.

Most buyers put down 10–20% of the home price.

Example:

• Home price: $400,000

• Down payment: $80,000

The calculator will automatically determine the loan amount.

3. Set the Interest Rate

Enter the expected mortgage interest rate offered by your lender.

Typical mortgage rates are often between 5% and 7%, depending on the market and your credit score.

4. Choose the Loan Term

Select how long you plan to repay the mortgage.

Common options include:

• 30 years – lowest monthly payment

• 15 years – higher monthly payment but less interest overall

• 20 years – balance between the two

5. Add Property Taxes and Insurance

To get a more accurate estimate, include:

Property Taxes – annual taxes charged by your local government.

Home Insurance – yearly cost of insuring your home.

These costs are usually included in your monthly mortgage payment.

6. Include HOA Fees (Optional)

If the property is part of a community or condo association, enter the monthly HOA fee.

If there is no HOA, simply leave this field as 0.

7. Click “Calculate Mortgage”

Once all fields are filled in, press Calculate Mortgage.

The calculator will instantly show:

• Monthly mortgage payment

• Loan amount

• Monthly principal and interest

• Total payment over the life of the loan

• Total interest paid

You will also see a visual breakdown of principal vs. interest.

8. Reset and Try Different Scenarios

Use the Reset button to clear the fields and test different scenarios.

This can help you understand how changes in:

• interest rates

• down payment

• loan term

affect your monthly payment.

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💡 Tip: Increasing your down payment or choosing a shorter loan term can significantly reduce the total interest you pay over time.