# Mortgage Calculator

CNET's mortgage calculator and glossary can help homebuyers figure out and prepare for monthly mortgage payments.

Buying a house is complicated, and calculating how much you can afford each month can be tricky.

The calculator below can help you quickly estimate how much you might pay for mortgage costs. Just enter the home price, down payment, loan term, interest rate and other key details here.

## How to calculate mortgage payments

This calculator excludes expenses like private mortgage insurance, a down paymentclosing costs and attorney fees. We do offer some guidelines for estimating those below, though. It's also worth acknowledging that this calculator can only provide an estimate: Your payment will depend on your specific situation, including your property, state of residence and the lender's particular terms and conditions.

Want to estimate how much you'll pay each month for your mortgage? This calculator uses the standard mortgage equation to determine your estimated monthly payment.

M = P [ r (1 + r)^n ] / [ (1 + r)^n - 1]

• M = your monthly mortgage payment
• P = your principal loan amount
• r = your monthly interest rate. Most lenders list this as an annual figure, so you'll need to divide this number by 12 to calculate your monthly rate. For example, if your rate is 4%, your monthly rate would be 0.003333 (0.04/12=0.003333).
• n = the number of monthly payments you'll make over the lifetime of the home loan. To find this, multiply the number of years in your loan term by 12 (the number of months in one year) and you'll get your total number of payments. A standard 30-year fixed mortgage, for example, would have 360 payments (30 x 12 = 360).

## Costs included in your mortgage payment

In addition to the principal and interest, there are other upfront and monthly costs to consider as part of the homebuying process:

• Down payment: Depending on your home loan type, a typical down payment is usually 20% -- though some types of loans will let you put down less -- and even, in some cases, nothing.
• Closing costs: When you close on your new home, your closing cost may range from 3% to 6% of the total mortgage amount. These costs include:
• Origination fees. These costs are charged by the lender for "originating," or creating your loan. Other costs in this category include application fees, underwriting fees, processing fees and administrative fees.
• Points. If you decide to pay for points, you'll pay more upfront in exchange for a lower monthly payment. One point equals 1% of the loan amount.
• Taxes and government fees. These are charged by your local government.
• Prepaid expenses and deposits. You'll typically be required to make an upfront deposit into an escrow for your property taxes and homeowners insurance.
• Mortgage Insurance: Depending on your loan type and down payment amount, you may be required to purchase mortgage insurance, which typically includes an upfront payment.
• Property taxes and homeowners insurance. In addition to an upfront deposit, you'll also be required to make monthly payments for property taxes and homeowners insurance, typically bundled into your mortgage amount.

## Next steps in the homebuying process

Once you know how much home you can afford, you can start the mortgage preapproval process and begin your home search. Your lender will use more detailed information than our calculator, so your actual affordability may look a bit different. And don't forget to shop around to ensure you're getting the best rates available.