Mortgage calculator for homes and commercial property
Enter the price, your down payment, the rate and the term to see the monthly payment with taxes and insurance, the payoff date and the total interest. The math runs in your browser, so nothing you type is sent to us.
Costs that rise each year
Extra payments
| Item | First month | Over the loan |
|---|---|---|
| Principal and interest | $2,128.97 | $766,428 |
| Property tax | $400.00 | $144,000 |
| Home insurance | $125.00 | $45,000 |
| Total | $2,653.97 | $955,428 |
What each input means and where to find it
A loan estimate or term sheet states most of these on its first page.
Price
The price in your contract. For a refinance, use what the property is worth now, since that is what the loan is measured against.
Down payment
The cash you put in at closing. The price minus the down payment is the loan.
Interest rate
The rate on your quote. Change it by half a point to see how much a small move does to the payment.
Loan term
The years you have to pay the loan off. On a home loan, 30 and 15 years are the usual lengths.
Property tax
Use the current bill for the property, or a percent of the price. A sale can change the assessed value, so ask the county if you are buying.
Insurance
The yearly premium on the property. A quote from an agent is better than a guess, since it depends on the building and the area.
PMI
Private mortgage insurance, which lenders usually charge on a conventional home loan with less than 20% down. Your loan estimate shows the amount.
HOA and other costs
HOA or association fees, plus anything you want counted such as repairs and upkeep. These do not change the loan, but they do change what goes out each month.
How a mortgage payment is worked out
The payment for principal and interest stays the same for the whole loan. Each month, interest is the balance times the yearly rate divided by 12, and the rest of the payment lowers the balance.
Early payments are mostly interest, because interest is charged on a balance that has barely moved. On a $320,000 loan at an example rate of 7%, the first payment of $2,129 is $1,867 of interest and $262 of principal.
A shorter loan costs more each month and far less in total. The table holds the loan and the rate steady and changes only the length.
| Length | Monthly payment | Total interest |
|---|---|---|
| 15 years | $2,876 | $197,725 |
| 20 years | $2,481 | $275,430 |
| 25 years | $2,262 | $358,508 |
| 30 years | $2,129 | $446,428 |
What extra payments do, and when PMI ends
Money above the regular payment goes straight to the balance, so less interest builds up in every month after it. Ask your servicer to apply it to principal, and check your loan for a prepayment charge first.
PMI follows the same balance. Under rules the Consumer Financial Protection Bureau explains, you can ask to cancel it on most conventional home loans once the balance reaches 80% of the home's original value, and it must end at 78% if your payments are current. Extra payments can get you to 80% sooner. FHA and VA loans follow different rules. The calculator stops PMI at 78% and shows the month you can ask.
| Extra each month | Paid off sooner by | Interest saved |
|---|---|---|
| $100 | 3 years, 11 months | $70,182 |
| $250 | 8 years | $138,388 |
| $500 | 12 years, 3 months | $206,857 |
How a commercial mortgage differs
A commercial mortgage often has two lengths. The amortization period sets the payment. The term sets when the loan comes due. When the term is shorter, whatever is still owed is due at once, and that lump sum is the balloon. Choose Business property above to enter both.
Lenders also read the property's income. With net operating income of $100,000 a year and payments of $7,068 a month, the debt service coverage ratio is 1.18. They check the loan against the value too: a $1,000,000 loan on a $1,250,000 building is a loan to value of 80%. Each lender sets its own limits for both, so ask for them in the quote.
If you run a business and own or want to buy its building, we can take one application to lenders in our network. Bank loans through our partners run up to $5 million and take weeks, and commercial equity loans borrow against property you already hold.
| Term | Monthly payment | Interest during the term | Balloon at the end |
|---|---|---|---|
| 5 years | $7,068 | $335,689 | $911,622 |
| 7 years | $7,068 | $460,374 | $866,680 |
| 10 years | $7,068 | $634,469 | $786,334 |
| 25 years | $7,068 | $1,120,338 | None |
Questions about mortgage payments
Mortgage calculator
Use payment = L × i ÷ (1 − (1 + i)^−n), where L is the loan, i is the yearly rate divided by 12, and n is the number of monthly payments. A $320,000 loan at an example rate of 7% over 30 years comes to about $2,129 a month in principal and interest. Add a twelfth of the yearly property tax, insurance and any PMI to get what goes out each month.
Principal and interest, and often property tax and insurance too, which many lenders collect each month and pay for you from an escrow account. PMI is added if you have it. HOA fees are usually paid to the association on their own.
On a $320,000 loan at an example rate of 7% over 30 years, $100 more each month pays the loan off 3 years, 11 months sooner and saves about $70,182 in interest. Extra money goes straight to the balance, so less interest builds up in every month after it.
On most conventional home loans you can ask your servicer to cancel it when the balance is scheduled to reach 80% of the home's original value, and the servicer must end it at 78% if your payments are current. FHA and VA loans follow different rules.
It is the balance still owed when the loan comes due before the payments have cleared it. On a $1,000,000 loan at an example rate of 7%, with payments sized over 25 years and a 10-year term, about $786,334 is still owed after 120 payments. Owners usually pay it by refinancing or selling.
The debt service coverage ratio is a property's net operating income for a year divided by the year's loan payments. A property earning $100,000 a year after operating costs, with payments of $7,068 a month, has a DSCR of 1.18. Above 1.00 the income covers the payments. Each lender sets its own minimum.
No. We arrange funding for businesses, including long-term bank loans and loans against commercial property you own. For a home loan, talk to a licensed mortgage lender or broker.
No. The calculator runs in your browser and sends nothing to us. The numbers are kept in the page address only so you can bookmark the page or send it to someone.
Read more about funding property and a business
- Commercial equity loansHow to borrow against a building your business already owns.
- SBA and bank loansLonger terms through bank partners, and what a bank file asks for.
- Business acquisition loansHow buyers finance a business, with or without its building.
- How to get a business loanThe steps from working out what you need to money in the account.
