AtlasCalcsUtility Calculation Suite
2026-09-21 7 min read

Conventional Mortgage Calculator

Programme pricing with its fees and insurance rules for a mortgage. Live calculator with worked steps, charts.

Calculator

Home Price Help
$

The purchase price of the property.

Down Payment(%)
%
Annual Interest Rate(%)
%
Loan Term(years)
years
Upfront Programme Fee (% of loan)(%) Help
%

FHA UFMIP, VA funding fee or USDA guarantee fee, financed into the loan.

Property Tax Rate (annual % of value)(%)
%
Annual Homeowners Insurance
$
HOA Dues (monthly)
$
Advanced options (2)
Annual Programme Fee (% of loan)(%) Help
%

FHA annual MIP or USDA annual fee.

PMI Rate (annual % of loan)(%) Help
%

Private mortgage insurance, roughly 0.3%–1.5% of the loan per year.

This mortgage types calculator runs on the standard amortisation model: interest is charged on the outstanding balance each month, and anything extra you enter is applied to principal immediately.

Amortization schedule

Balance Interest Payment
View:
YearInterestPrincipalEnding Balance
1$25,503.39$2,673.16$317,326.84
2$25,281.52$2,895.04$314,431.80
3$25,041.24$3,135.32$311,296.48
4$24,781.01$3,395.55$307,900.92
5$24,499.18$3,677.38$304,223.54
6$24,193.96$3,982.60$300,240.94
7$23,863.40$4,313.16$295,927.78
8$23,505.41$4,671.15$291,256.63
9$23,117.71$5,058.85$286,197.78
10$22,697.83$5,478.73$280,719.05
11$22,243.10$5,933.46$274,785.59
12$21,750.62$6,425.94$268,359.65
13$21,217.27$6,959.29$261,400.36
14$20,639.65$7,536.91$253,863.46
15$20,014.09$8,162.47$245,700.99
16$19,336.61$8,839.95$236,861.04
17$18,602.90$9,573.66$227,287.39
18$17,808.29$10,368.27$216,919.12
19$16,947.73$11,228.83$205,690.29
20$16,015.75$12,160.81$193,529.48
21$15,006.40$13,170.16$180,359.33
22$13,913.29$14,263.27$166,096.05
23$12,729.44$15,447.12$150,648.94
24$11,447.34$16,729.22$133,919.72
25$10,058.82$18,117.74$115,801.98
26$8,555.06$19,621.50$96,180.48
27$6,926.49$21,250.07$74,930.41
28$5,162.74$23,013.82$51,916.59
29$3,252.60$24,923.96$26,992.63
30$1,183.93$26,992.63$0.00

Results

Optimal

Total Monthly Payment — Conventional

$2,998.05/month

Conventional programme on $400,000.

Principal & Interest

$2,348.05/month

On $320,000 financed at 8.00%.

Upfront Programme Fee

$0

None for this programme.

Monthly Programme Fee / MI

$133

Conventional PMI by credit and LTV.

Taxes, Insurance & HOA

$517

Total Interest Over the Term

$525,297

Cash Needed at Closing

$90,000

Down payment plus closing costs.

Down Payment Requirement

Meets the 3.0% floor

Programme Loan Limit Reference

$806,500

Within the reference ceiling.

Live results update as you type — currently showing total monthly payment — conventional of $2,998.05 /month on 12 payments a year. Replace the defaults with your own quote for an exact comparison.

Visualizations

Upfront Cash Needed

80,000Down payment
10,000Closing costs

Monthly Payment Composition

Principal & interest78%
Programme fee / MI4%
Escrow17%

Formula

Each programme layers its own fees on the same amortisation maths: FHA finances a 1.75% upfront premium plus annual MIP; VA replaces insurance with a funding fee; USDA adds a 1% guarantee fee and 0.35% annual fee; conventional prices PMI by credit and LTV and removes it at 78%.

See the worked steps below for the exact relationship used

Variables

SymbolNameUnitDescription
AAmountcurrencyBalance or amount involved in the calculation
iPeriodic ratedecimalAnnual rate ÷ periods per year
nNumber of periodscountTerm in payments

Explanation

Each programme layers its own fees on the same amortisation maths: FHA finances a 1.75% upfront premium plus annual MIP; VA replaces insurance with a funding fee; USDA adds a 1% guarantee fee and 0.35% annual fee; conventional prices PMI by credit and LTV and removes it at 78%.

Step-by-Step Calculation

Follow each step to understand how the result is calculated from your inputs.

Step 1

Add the programme upfront fee to the amount financed.

Financed = loan + loan × upfront %
Loan:$320,000
Upfront %:0.00%
Result: $320,000
Step 2

Price the payment on the financed amount.

P = financed × i ÷ (1 − (1 + i)^−n)
Result: $2,348.05 per month
Step 3

Layer the annual fee, then escrow, for the true monthly cost.

Total = P&I + annual fee ÷ 12 + escrow
Intermediate: $2,348.05 + $133.33 + $516.67
Result: $2,998.05
Final Answer
$2,998.05

Worked Examples

See how the calculator works with different scenarios.

Scenario

The conventional mortgage calculator run on the values above, showing the full calculation path rather than only the answer.

Inputs

Rate:8
Years:30

Calculation

1. Add the programme upfront fee to the amount financed. → $320,000 2. Price the payment on the financed amount. → $2,348.05 per month 3. Layer the annual fee, then escrow, for the true monthly cost. → $2,998.05

Result

Total Monthly Payment — Conventional: $2,998.05 /month

Interpretation

Conventional on $400,000 with 20.0% down: financed $320,000 (incl. $0 fee), payment $2,998.05 incl. $133.33 fee/MI and $516.67 escrow.

Understanding Your Result

Your Result: Total Monthly Payment — Conventional: $2,998.05 /month

Typical range: Conforming conventional loans cap at the FHFA limit, price PMI by credit and down payment, and drop PMI automatically at 78% amortisation.

What This Means

Each programme layers its own fees on the same amortisation maths: FHA finances a 1.75% upfront premium plus annual MIP; VA replaces insurance with a funding fee; USDA adds a 1% guarantee fee and 0.35% annual fee; conventional prices PMI by credit and LTV and removes it at 78%.

Why It Matters

Conventional on $400,000 with 20.0% down: financed $320,000 (incl. $0 fee), payment $2,998.05 incl. $133.33 fee/MI and $516.67 escrow.

Professional Interpretation

Conventional on $400,000 with 20.0% down: financed $320,000 (incl. $0 fee), payment $2,998.05 incl. $133.33 fee/MI and $516.67 escrow.

How this is calculated

Each programme layers its own fees on the same amortisation maths: FHA finances a 1.75% upfront premium plus annual MIP; VA replaces insurance with a funding fee; USDA adds a 1% guarantee fee and 0.35% annual fee; conventional prices PMI by credit and LTV and removes it at 78%.

What drives the result

Each programme layers its own fees on the same amortisation maths: FHA finances a 1.75% upfront premium plus annual MIP; VA replaces insurance with a funding fee; USDA adds a 1% guarantee fee and 0.35% annual fee; conventional prices PMI by credit and LTV and removes it at 78%.

Recommendations

  • •Compare this programme against conventional pricing at the same day and lock — the fee structure decides the winner.
  • •Ask how and when the annual fee can be removed; on FHA it can run for the life of the loan below 10% down.

Educational Content

Introduction

Mortgage programmes — FHA, VA, USDA, conventional, jumbo, physician and first-time schemes — differ in down payment, insurance structure and upfront fees. The right choice depends on credit, cash, loan size and eligibility, not on the headline rate.

Concept Explanation

Each programme layers its own fees on the same amortisation maths: FHA finances a 1.75% upfront premium plus annual MIP; VA replaces insurance with a funding fee; USDA adds a 1% guarantee fee and 0.35% annual fee; conventional prices PMI by credit and LTV and removes it at 78%.

Applications

▸Comparing an FHA quote against conventional pricing with 5% down
▸Checking whether VA’s no-PMI structure beats a conventional 5% loan
▸Sizing a jumbo purchase against conforming limits
▸Testing physician or first-time programme eligibility effects

Benefits

  • •Prices the programme’s fees into the payment, not just the marketing
  • •Flags down-payment floors and loan-limit ceilings
  • •Shows the cash difference between financing or paying the upfront fee
  • •Makes side-by-side programme comparison concrete

Limitations

  • •Fee schedules change with policy; verify current figures with the lender
  • •County loan limits and income caps vary by location
  • •Programme eligibility (VA service, USDA geography) is assumed, not verified
  • •MIP duration rules differ by down payment and programme generation

Best Practices

  • •Compare each programme at the same rate-day and lock period
  • •Ask when the annual fee can be removed — on FHA it may run for the life of the loan
  • •Finance the upfront fee when cash is tight; the payment impact is small
  • •Re-check the conventional alternative whenever credit or equity improves

Common Misconceptions

Myth: FHA is only for first-time buyers
Truth: It is a credit-flexible programme open to any eligible borrower who meets the down-payment floor.
Myth: VA loans always cost more
Truth: The funding fee replaces years of PMI; for most eligible buyers VA pricing wins.

Practical Tips

  • •Compare each programme at the same rate-day and lock period
  • •Ask when the annual fee can be removed — on FHA it may run for the life of the loan
  • •Finance the upfront fee when cash is tight; the payment impact is small

Common Mistakes

FHA is only for first-time buyers
It is a credit-flexible programme open to any eligible borrower who meets the down-payment floor.
VA loans always cost more
The funding fee replaces years of PMI; for most eligible buyers VA pricing wins.

Assumptions

This calculator makes the following assumptions to provide estimates:

Figures as entered: The result follows directly from the values you supplied.

Limitations

Be aware of these limitations when using this calculator:

Limitation: Fee schedules change with policy; verify current figures with the lender
Limitation: County loan limits and income caps vary by location
Limitation: Programme eligibility (VA service, USDA geography) is assumed, not verified
Limitation: MIP duration rules differ by down payment and programme generation

Frequently Asked Questions

Answers to common questions about this calculator.

Who uses the conventional mortgage calculator?
It is used by home buyers comparing mortgage offers, by owners weighing a refinance or equity move, and by loan officers and advisers sanity-checking a payment, ratio or fee structure. It sits in the Mortgage Types group of the Mortgage & Home Finance section of Atlascalcs.
How accurate is the conventional mortgage calculator?
Every figure follows directly from the inputs using standard amortisation mathematics, so it is accurate to the quality of the values you enter. Lenders round payments and apply their own day-count conventions, so expect small differences against a formal statement or payoff quote.
How current are the rates and thresholds used here?
The calculator uses the figures you enter, so update the rate to your actual offer or current market quote. Ratio thresholds, poverty guidelines and programme rules reflect the conventions described in the references and change periodically.
Does rounding change the results?
Every calculation runs on full precision and rounds only for display. Lenders round payments to the nearest cent or dollar, so expect a small difference between these figures and a formal statement or payoff quote.
Should I use the payment or the total cost to compare offers?
Use the payment to judge cash flow and the finance charge or APR to judge cost. When two offers differ on both, the all-in cost over the period you expect to hold the loan is the decisive measure.
Can I use this calculator for a business or commercial loan?
Yes. The payment, amortisation, ratio and cost calculators apply the same amortisation mathematics to commercial loans; the difference is in the fees, covenants and collateral rules, which you should enter explicitly.
What information should I have ready before applying?
Your exact rate and term, the fee schedule, any required add-ons, and your gross income and existing monthly obligations. With those five numbers every figure on this page can be tied back to a lender quote.

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Related Guides

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Glossary

Technical terms used in mortgage calculations explained in plain language.

Principal
The amount borrowed, excluding interest and fees. Payments applied to principal reduce the balance and therefore future interest.
Amortisation
Repaying a debt through a schedule of payments that gradually shifts the split from interest to principal until the balance reaches zero.
APR (Annual Percentage Rate)
The yearly cost of credit expressed as a rate, including interest and most upfront finance charges.
Finance charge
The total dollar cost of credit, including interest and certain fees.

Authoritative References

Trusted sources and standards referenced by this calculator.

Applicable Standards

Level-payment (simple-interest) amortisation, payments assumed in arrearsAPR computed by discounting the actual payment stream to net proceedsDebt ratios computed on gross income for lender comparisonsMoney rounded for display only; all calculations run at full precision

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Page Information

Last Updated:

2026-09-21

Version:

2.0.0

License:

Free to use for educational and professional purposes.