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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.

What Is a Wire Transfer and How Does It Work?

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


What is the Xe mortgage calculator and how does it work?
What key factors affect my monthly mortgage payment?
How does the down payment influence my mortgage payments?
Which types of mortgage loans can I calculate with Xe’s tool?
What is the mortgage payment formula used by Xe?
How can I lower my monthly mortgage payments?
How do property taxes, homeowners insurance, and HOA fees affect my mortgage costs?
How do I determine a home price I can afford?
What are the next steps after calculating my mortgage payment?