Mortgage calculator
Estimate your monthly mortgage payments and plan your home purchase in the United States with Xe’s mortgage calculator. Enter the home price, down payment, loan term, and interest rate to see your monthly payment.
Use Xe's mortgage rate calculator
Choose your country
Select the country you want to buy property in to get accurate mortgage calculations based on local rates.
Enter home price
Add your home price to help us calculate your loan amount and estimate your monthly payments.
Add down payment
Enter the amount you plan to put down. This determines the size of your loan and monthly payments.
Select a loan term
Choose the length of your mortgage to determine your monthly payments and total interest paid over time.
Input interest rate
Enter the estimated interest rate you expect to receive. This affects the total amount of interest paid over time.
Choose send currency
Select the currency you’d like to pay in to see your monthly mortgage costs converted in real-time.
Expenses factored into mortgage costs
Home price: This is the total amount you’ll pay for a home. The home price directly impacts your loan amount, monthly mortgage payments, and overall costs. When choosing a home, consider other expenses like property taxes, homeowners insurance, and closing costs to remain within your budget.
Down payment: When buying a home, you’ll need to pay a percentage of the total home price upfront, otherwise known as a down payment. A higher down payment reduces your loan amount and lowers monthly payments, while a smaller down payment increases these these costs.
Interest rate: An interest rate is the percentage of the loan amount that the lender will charge you for borrowing money, affecting how much you pay each month. A lower rate reduces your total loan cost, while a higher rate increases it. Interest rates can be fixed throughout the loan term or variable.
Loan term: The loan term is the time it will take to repay the mortgage loan. A shorter term, like 15 years, will have higher monthly payments but less interest paid overall. However, a longer term, like 30 years, lowers mortgage payments and increases total interest costs.
Property tax: Property tax is a government tax based on the value of your home and your tax rate. It helps fund local schools, road maintenance, public infrastructure, and emergency services. You will pay this tax annually or as a part of your monthly mortgage payment.
Homeowners insurance: Homeowners insurance is a policy that protects you from financial losses due to damage, theft, or liability claims. Most lenders will require this to make sure that you can repair or replace your home in the instance that an unpredictable event occurs.
PMI: Private mortgage insurance is added to your monthly payment if you put down less than 20% when purchasing a home. This protects the lender in case you aren't able to pay your loan. Once you build enough home equity, you'll be able to remove the private mortgage insurance.
HOA: Homeowners who live in residential communities like a neighborhood, condominium complex, or townhouse pay monthly or annual Homeowner’s Association fees. This typically pays for amenities, maintenance, and other community services. Fees and regulations vary per community.
Closing costs: Closing costs are upfront fees that you pay when finalizing a property purchase. They usually range from 2% to 5% of the home's total price and includes lender fees, title insurance, appraisal costs, and taxes. These costs are the final step to purchasing a home and are due at closing.
Mortgage payment formula
This formula helps you figure out your monthly mortgage payment based only on the loan amount and interest. It does not include any additional costs such as property taxes, homeowners insurance, or any fees that may increase your total monthly payment.
Manually calculate your monthly mortgage payments with this formula:
Here’s the breakdown:
M = Monthly payment:
This is what you’re solving for. To get started, gather your loan details. These factors will determine how much you'll pay each month.
P = Principal amount:
This is the loan balance, or the total amount that you still owe on your mortgage. Your loan balance directly impacts your monthly payment, interest costs, and home equity. You'll build more ownership in your property as the balance decreases.
r = Monthly interest rate:
The mortgage interest rate is an annual rate that will be paid monthly over the course of the year. To find the monthly interest rate, divide the annual percentage by the number of months in a year. For example, if your annual interest rate is 5%, this would look like 0.05/12 = 0.004167.
n = Number of payments:
This is the total number of payments you will make over the life of your loan. To find the total amount, multiply your loan term in years by 12. For example, if your loan term is 30 years, this would look like 30x12 = 360. This means that you will make a total of 360 payments throughout your loan term.
Common types of loans
Conventional loan: This is a conforming loan backed by private lenders that require good credit and a 3% to 5% down payment. If you put down less than 20%, private mortgage insurance is required.
FHA loan: An FHA loan helps first-time homebuyers or people with lower credit scores. It requires a minimum down payment of 3.5% and mandatory mortgage insurance, which increases the loan cost.
VA loan: VA loans are available to veterans, active-duty, and some spouses, backed by the Department of Veterans Affairs. It requires no down payment or PMI, but buyers need to pay a funding fee.
USDA loan: A USDA loan is a government-backed loan available to buyers purchasing a home in rural or suburban areas. No down payment is needed, but it has income limits and requires PMI.
Jumbo mortgages: Jumbo loans exceed the standard limits and requires higher credit scores, larger down payments, and stricter qualifications.
Additional loan terms
Loan term: This is the refers to the length of time you have to repay the loan in full, typically 15, 20, or 30 years. Shorter terms have lower interest rates but higher monthly payments, while longer terms have lower monthly payments, with higher total interest.
Fixed-rate vs adjustable-rate: A fixed-rate mortgage remains the same rate for the entire loan term, providing predictable payments. An adjustable-rate mortgage (ARM) starts with a fixed rate and then changes based on market conditions, causing payments to increase or decrease.
Conforming loans vs non-conforming loans: Conforming loans meet guidelines that are set by Fannie Mae or Freddie Mac. Non-conforming loans don't meet these standards and require higher credit scores, larger down payments, and stricter financial requirements.
How to decide on a home price that you can afford
A common way to estimate the cost of a home you can afford is by using the 28/36 rule. This guideline suggests that no more than 28% of your gross monthly income goes toward housing costs, such as your mortgage, property taxes, and insurance. Meanwhile, your total monthly debt payments, including car loans, student loans, and credit cards, should stay below 36% of your income.
28/36 method
Alex earns $6,000 a month before taxes. Based on the 28% rule, his mortgage payment, including taxes and insurance, should be $1,680. With an additional $800 in monthly student and car payments, his total debt is $2,480, exceeding the 36% limit. Alex will have to adjust his home budget or pay off some debt before buying.
Other affordability rules
The 28/36 rule is just one approach. Lenders also consider your debt-to-income (DTI) ratio, which measures your total monthly debt compared to your income. Additionally, factors like your credit score, savings for a down payment, and lifestyle expenses all affect what you can comfortably afford.
Next steps after calculating your mortgage payment
After you've estimated your mortgage payments, follow these steps to move forward with your property purchase.
Step 1: Find a lender. Compare loan options, interest rates, and fees to choose the lender that works best for you.
Step 2: Get prequalified for a mortgage. Submit your basic financial details to get an estimate of how much you can afford.
Step 3: Start shopping for a home and put in an offer. Once you find a home, make an offer and negotiate the best deal with the seller.
Step 4: Once your offer is accepted, you can formally apply for a loan. Submit the necessary documents and complete the approval process.
Step 5: Complete the home-buying process by making your down payment and finalizing the purchase.
Frequently asked questions - Xe mortgage calculator United States
The Xe mortgage calculator is an online tool that helps you estimate your monthly mortgage payments in the United States. By entering your home price, down payment, loan term, and interest rate, you can quickly see how much your home loan will cost each month. This powerful mortgage calculator is designed to help homebuyers plan and budget for their mortgage.
Your monthly mortgage payment is influenced by several important factors:
Home price: The total purchase price of your property.
Down payment: The cash amount paid upfront, which reduces the overall loan amount.
Loan term: The duration of your mortgage (e.g., 15 years vs. 30 years) affects both the monthly cost and total interest paid.
Interest rate: The annual percentage rate converted into a monthly rate.
Additional costs: Optional inputs like property taxes, homeowners insurance, and HOA fees can also be included for a complete payment estimate.
Using these inputs, the Xe mortgage calculator helps you compare different loan scenarios and find the best option for your budget.
A larger down payment lowers your loan amount, which in turn reduces your monthly mortgage payment and total interest over time. If you put down less than 20%, you may need to pay for private mortgage insurance (PMI), which can increase your monthly costs. By increasing your down payment, you can achieve lower mortgage rates and save money in the long run.
The Xe mortgage calculator covers various types of home loans available in the United States, including:
Conventional Loans: Typically require 3%-5% down with additional PMI if under 20%.
FHA Loans: Ideal for first-time homebuyers with lower credit scores and require a minimum 3.5% down payment.
VA Loans: Available for eligible veterans and active-duty service members, often with no down payment or PMI.
USDA Loans: Government-backed loans for rural properties, often with no down payment and income-based requirements.
Jumbo Loans: For high-value properties that exceed conventional loan limits, requiring higher credit scores and larger down payments.
These options are integrated into the Xe mortgage calculator so you can evaluate different financing scenarios.
The standard mortgage payment formula is:
M = P × [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]
where:
M = Monthly mortgage payment
P = Principal (loan amount)
r = Monthly interest rate (annual rate divided by 12)
n = Total number of payments (loan term in years multiplied by 12)
This formula is embedded in the Xe mortgage calculator, allowing you to see exactly how changes in interest rate or loan term impact your monthly payment.
To reduce your monthly mortgage payment, consider these strategies:
Opt for a longer loan term: Extending the mortgage term (e.g., 30 years instead of 15) reduces the monthly payment, though total interest may increase.
Increase your down payment: A higher down payment decreases your principal and can help you secure a better interest rate.
Choose a less expensive home: A lower home price results in a smaller loan amount, leading to reduced monthly payments.
Using the Xe mortgage calculator, you can simulate these scenarios to determine the most cost-effective option for you.
These additional expenses are factored into the total monthly payment when you choose to include them.
Property taxes: Calculated based on your home’s value and local tax rates, they can significantly affect your payment.
Homeowners insurance: Essential for protecting your investment, this cost can be added to your monthly mortgage payment.
HOA fees: Regular fees for properties in managed communities add to your monthly expenses.
Including these costs in the Xe mortgage calculator provides a comprehensive view of your overall homeownership costs.
Experts often use the 28/36 rule as a guideline for home affordability:
28% rule: No more than 28% of your gross monthly income should be spent on housing costs (including mortgage, taxes, and insurance).
36% rule: Your total debt payments should not exceed 36% of your income.
The Xe mortgage calculator, combined with these affordability guidelines, helps you determine a realistic home price and mortgage plan that fits your budget.
After you obtain your monthly mortgage payment estimate using the XE mortgage calculator:
Compare lenders: Look at different mortgage options, rates, and fees to find the best deal.
Get prequalified: Submit your financial information to get a prequalification, so you know how much you can borrow.
Start house-hunting: Use your budget to search for homes within your price range.
Apply for a mortgage: Complete the mortgage application process and submit required documents.
Finalize your purchase: Make your down payment, close on the loan, and move into your new home.
This step-by-step process ensures you are well-prepared for a successful home purchase.