Mortgage Calculator
Estimate your monthly mortgage payment with our easy-to-use Mortgage Calculator. Get a complete breakdown of your home loan’s principal, interest, taxes, and insurance (PITI), and plan your finances confidently whether you're a first-time homebuyer or refinancing your existing loan.
How to Calculate a Mortgage?
A mortgage payment typically includes four key elements, commonly referred to as PITI:
- Principal: The original loan amount borrowed to buy the home.
- Interest: The lender’s charge for borrowing the principal, usually expressed as an annual percentage rate (APR).
- Taxes: Annual property taxes divided into monthly installments.
- Insurance: Homeowners insurance (and potentially mortgage insurance) premiums also paid monthly.
Our calculator estimates your monthly payment using the loan amount, term (in years), and interest rate. You can also enter optional fields like annual property taxes and insurance costs to get a more complete monthly cost.
Mortgage Payment Formula
The formula to calculate your base mortgage payment (principal + interest) is:
M = P × (r × (1 + r)^n) / ((1 + r)^n – 1)
- M = Monthly mortgage payment
- P = Loan principal (amount borrowed)
- r = Monthly interest rate (APR ÷ 12 ÷ 100)
- n = Total number of monthly payments (years × 12)
This base payment is then adjusted to include taxes and insurance to give your full monthly cost.
Why Use a Mortgage Calculator?
- Estimate affordability: Understand how much house you can afford based on your income and monthly budget.
- Compare loan offers: See how different rates, down payments, or loan terms affect your monthly cost.
- Prepare for closing: Account for all recurring housing costs like taxes and insurance.
- Plan ahead: Visualize how extra payments or refinancing could reduce your total interest.
What Affects Your Mortgage Payment?
Several variables impact the amount you’ll pay each month:
- Loan Amount: A larger loan means higher monthly payments and more interest.
- Interest Rate: Even a small change in APR can result in thousands of dollars saved or added over time.
- Loan Term: 15-year loans have higher monthly payments but less interest than 30-year loans.
- Down Payment: A larger down payment lowers your loan principal, reducing your monthly burden.
- Property Taxes: Rates vary by location and are often 0.5%–2.5% of your home’s value per year.
- Insurance: Most lenders require homeowners insurance, and some charge for PMI (Private Mortgage Insurance) if your down payment is under 20%.
Amortization and Interest Breakdown
Your mortgage amortization schedule shows how much of each monthly payment goes toward interest vs. principal. In the early years, most of your payment goes to interest. Over time, more of each payment goes toward reducing the principal.
Our calculator can optionally display this amortization schedule, helping you:
- See how your loan balance decreases over time
- Identify interest-heavy periods
- Plan for extra payments or refinancing
FAQs
A: Only if you enter an estimate. You can include annual taxes to get a full monthly payment.
A: Private Mortgage Insurance is typically required if your down payment is less than 20%. It protects the lender and adds to your monthly cost.
A: No. This calculator is for fixed-rate loans only. Variable-rate loans change based on market conditions.
A: Yes. Add HOA fees manually to your total monthly cost after calculating your mortgage payment.
Start Calculating Now
Buying a home is one of the biggest financial decisions you'll ever make. Our mortgage calculator gives you a clear, accurate understanding of your loan and helps you avoid surprises. Whether you're just browsing or preparing for pre-approval, this tool can guide your home-buying journey.
Bookmark this page and use it anytime to evaluate loan options, plan your budget, or prepare for a conversation with your lender or realtor.