How to calculate a 30-year fixed-rate mortgage

Enter the following in the calculator:

1. The price of a home. If you haven’t started shopping, use our home affordability calculator to get an idea of how much you can afford.

2. The down payment amount. This is the amount you plan to pay upfront for the home.

3. The loan term. This calculator is for 30-year fixed-rate mortgages only, so enter “30.”

4. The interest rate. Compare today’s mortgage rates to estimate the rate you’ll pay.

If you’d like, you can enter the following advanced options:

1. The annual property tax. Check with your county treasurer’s office to learn the current tax rate in your area or ask your real estate agent, if you have one.

2. Annual home insurance premium. Check your loan estimate if you already have one from a lender. It will include a monthly estimate for home insurance and property taxes. You can also ask your real estate agent or your car insurance agent, if you have one, for a ballpark home insurance estimate.

3. Monthly homeowner association dues. Only homes in communities governed by homeowner associations will be subject to HOA dues. Ask a real estate agent about any HOA fees for homes you’re considering.

Once you’ve entered everything, the calculator will provide these results:

• Your monthly mortgage payment’s combined principal and interest.

• Monthly costs for property taxes, homeowners insurance and HOA dues, if you entered values for those costs.

• Total monthly mortgage payment, including any of the optional costs you entered.

• Down payment percentage.

• Biweekly mortgage payment.

• Total interest paid over the life of the loan.

• Total cost of the mortgage, including principal and interest, over 30 years.

The calculator does not include cost for mortgage insurance. You likely will pay for private mortgage insurance on a conventional loan if your down payment is under 20%. See our mortgage calculator with PMI for a monthly payment estimate including the cost of private mortgage insurance.

Thinking about an FHA mortgage? See NerdWallet’s FHA mortgage calculator to estimate your monthly payment, including FHA mortgage insurance.

What are the advantages of a 30-year fixed-rate mortgage?

A 30-year fixed mortgage gives you a more affordable monthly payment than a 15- or 20-year mortgage because it stretches the repayment over a longer period. But it also provides flexibility — you can pay the mortgage off faster by making extra payments or adding to your monthly payment.

Unlike an adjustable-rate mortgage, a fixed-rate mortgage is predictable. The principal and interest portion of your mortgage payment stays the same, no matter what happens in the economy.

»MORE: See NerdWallet’s picks for best 30-year fixed-rate mortgage lenders

What are the disadvantages of a 30-year fixed-rate mortgage?

A 30-year fixed mortgage typically has a higher interest rate than a mortgage with a shorter repayment term. It also takes longer to build equity, and you pay more in total interest over a 30-year term than with a 15- or 20-year fixed-rate mortgage.

»MORE: See NerdWallet’s picks for best 15-year fixed-rate mortgage lenders

Can you pay off a 30-year mortgage early?

Yes, you can pay off a 30-year mortgage faster by making extra payments or adding to your monthly payment. If you want to pay it off in 15 or 20 years, ask your lender for an amortization schedule showing how much you need to pay each month to pay off the mortgage in the preferred time period.