Mortgage Calculator

Estimate Monthly Housing Payment

Enter the home price, down payment, rate, taxes, and insurance to see the monthly payment composition.

Monthly payment summary

Estimated monthly payment Enter home details Your payment composition will appear here.

Includes principal and interest, annual property tax divided by 12, and annual insurance divided by 12. PMI, HOA dues, closing costs, and lender fees are not included.

Important Finance Disclaimer

This calculator is for estimates only and educational purposes. It does not constitute financial, investment, loan, tax, legal, accounting, or other professional advice. Always verify important decisions with a qualified professional and the relevant lender, advisor, tax authority, or service provider.

Inputs, units, and periods

  • Home price, down payment, property tax, and insurance are treated as dollar amounts.
  • The interest rate is an annual nominal mortgage rate entered as a percent and converted to a monthly rate.
  • The selected mortgage term is converted to monthly payments.
  • Annual property tax and homeowners insurance are divided by 12 and added to the estimated monthly payment.

Items not included

  • PMI, HOA dues, closing costs, points, lender fees, escrow changes, tax reassessments, and local fees unless you add them separately.
  • APR disclosures, adjustable-rate mortgage resets, buy-downs, and lender-specific underwriting terms.
  • Future changes in tax, insurance, interest rates, or home ownership costs.

Actual outcomes can differ because of rounding, fees, taxes, insurance, compounding rules, APR disclosures, loan terms, market conditions, provider policies, and the exact timing of payments or cash flows.

What is a Mortgage Calculator?

A mortgage calculator helps you estimate your monthly home loan payment, including principal, interest, property taxes, and insurance. It's an essential tool for anyone planning to buy a home or refinance an existing mortgage.

By adjusting the home price, down payment, interest rate, and loan term, you can see how different scenarios affect your monthly payment and total cost of the loan.

How Mortgage Payments Are Calculated

Follow these detailed steps:

  1. Step 1: Enter Home Details
    Input the home price, down payment amount, interest rate, and loan term. A 20% down payment helps you avoid PMI (Private Mortgage Insurance).
  2. Step 2: Calculate P&I Payment
    Principal and Interest form your base mortgage payment. For a $300,000 loan at 6.5% for 30 years: P&I = $1,896/month.
  3. Step 3: Add Escrow Items
    Include property taxes (typically 1-2% of home value annually), homeowners insurance, and PMI if applicable to get your total monthly payment.

Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where: M = Monthly principal & interest payment, P = Principal (loan amount), r = Monthly interest rate (annual rate / 12 / 100), n = Total number of payments (years × 12)

Total Monthly Payment = Principal & Interest + Property Tax/12 + Insurance/12

Example

Home Purchase Example

Problem: You want to buy a $350,000 home with a 20% down payment, at 6.5% interest for 30 years. Annual property tax is $4,200 and insurance is $1,800.

Solution:

  1. Down Payment: $350,000 × 20% = $70,000
  2. Loan Amount: $350,000 - $70,000 = $280,000
  3. Monthly Principal & Interest: $1,770.31
  4. Monthly Tax: $4,200 / 12 = $350
  5. Monthly Insurance: $1,800 / 12 = $150
  6. Total Monthly Payment: $2,270.31

Quick Calculation Tips

  • 15-year mortgages typically have lower rates than 30-year
  • A 20% down payment eliminates PMI, saving 0.5-1% annually
  • Get pre-approved to know your budget before house hunting
  • Consider total payment including taxes and insurance, not just P&I

Common Mistakes to Avoid

  • Forgetting closing costs
    Budget 2-5% of home price for closing costs on top of down payment.
  • Ignoring PMI costs
    PMI adds 0.5-1% of loan amount annually until you reach 20% equity.

Frequently Asked Questions

What is included in a mortgage payment?

A typical mortgage payment includes four components (often called PITI): Principal (the amount borrowed), Interest (the cost of borrowing), Taxes (property taxes), and Insurance (homeowners insurance and possibly PMI).

How much should I put down on a house?

A 20% down payment is ideal as it helps you avoid Private Mortgage Insurance (PMI) and results in better loan terms. However, many loans allow lower down payments (3-10%), especially for first-time buyers.

Should I choose a 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but saves significantly on interest and builds equity faster. A 30-year mortgage has lower payments but costs more in total interest. Choose based on your budget and financial goals.

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