Mortgage Calculator
Calculate your monthly mortgage payment including taxes and insurance
Enter values to see results
Fill in the form and click Calculate
How to Use This Calculator
Enter the home price, your down payment amount, loan term, and interest rate. Optionally add property taxes, homeowners insurance, PMI, and HOA fees to see your complete monthly housing cost. The calculator shows your total monthly payment and how much you will pay in interest over the life of the loan.
Understanding Your Mortgage Payment
Your monthly mortgage payment consists of several components, often called PITI:
- Principal: The portion that pays down your loan balance
- Interest: The cost of borrowing money
- Taxes: Property taxes paid through escrow
- Insurance: Homeowners insurance and possibly PMI
The Mortgage Payment Formula
M = P × [r(1+r)n] / [(1+r)n - 1]
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Number of payments (years × 12)
Example Calculation
For a $400,000 home with 20% down ($80,000), a 30-year loan at 6.5% interest:
- Loan Amount: $320,000
- Principal & Interest: $2,022/month
- Total Interest Over 30 Years: $407,969
Frequently Asked Questions
How much house can I afford?
A common rule is that your monthly housing costs should not exceed 28% of your gross monthly income. This includes mortgage payment, property taxes, and insurance. Lenders also consider your total debt-to-income ratio.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. PMI protects the lender if you default on the loan. You can request to remove PMI once you have 20% equity.
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but lower total interest. A 30-year mortgage has lower monthly payments but you pay more interest over time. Choose based on your monthly budget and financial goals.
What affects my mortgage interest rate?
Your credit score, down payment size, loan amount, loan type, and market conditions all affect your rate. A higher credit score and larger down payment typically result in a lower interest rate.