Mortgage Calculator
Find your total monthly mortgage payment, including principal, interest, property taxes, home insurance, PMI, and HOA fees, plus a full amortization schedule and how extra payments can shorten your loan term.
Your monthly payment will appear here
Enter your home price, down payment, and loan terms, then click calculate.
Quick Answer
A mortgage calculator estimates your monthly payment by combining principal and interest, based on your loan amount, interest rate, and term, with property taxes, home insurance, PMI, and HOA fees. It then shows how that payment breaks down and changes over the life of the loan.
How It Works: Formula & Variables
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- P
- Principal, the loan amount after subtracting your down payment from the home price.
- r
- Monthly interest rate, the annual rate divided by 12.
- n
- Number of monthly payments over the loan term.
- M
- Monthly principal and interest payment. Taxes, insurance, PMI, and HOA fees are added on top.
Worked Examples
Example 1: $400,000 home, 20% down
A $400,000 home with a 20% down payment ($80,000) leaves a $320,000 loan. At 6.5% APR over 30 years, with $4,800 in annual property tax and $1,500 in annual home insurance, the total monthly payment comes to about $2,548. No PMI is needed, since the down payment hits the 20% mark.
Example 2: $300,000 home, 10% down
A $300,000 home with a 10% down payment ($30,000) leaves a $270,000 loan. At 6.5% APR over 30 years, that's roughly $1,706 in principal and interest. Because the down payment is below 20%, PMI at 0.5% adds about $113 a month, bringing the total before taxes and insurance to around $1,819.
Key Concepts
Escrow holds your taxes and insurance: Lenders typically collect one-twelfth of your annual property tax and insurance with each monthly payment and pay those bills on your behalf from an escrow account.
PMI is not permanent: Private mortgage insurance can usually be removed once you have built up 20% equity in your home, either through payments or appreciation.
A longer term lowers your payment but raises your total interest: Stretching a loan from 15 to 30 years lowers the monthly payment, but you will pay significantly more interest over the life of the loan.
Common Mistakes
Forgetting taxes and insurance when budgeting: Many buyers focus only on principal and interest, then get caught off guard when escrow costs push the real payment hundreds of dollars higher.
Assuming PMI lasts forever: PMI can typically be canceled once you reach 20% equity. It is worth tracking your loan balance and requesting removal rather than paying it indefinitely.
Not accounting for extra payments correctly: Extra payments only reduce your term and total interest if they are applied directly to principal. Confirm with your lender that extra payments are not being held or misapplied.
Frequently Asked Questions
Your payment has two parts. Principal and interest come from a standard amortization formula based on your loan amount, interest rate, and term. On top of that, the calculator adds one-twelfth of your annual property tax and home insurance, plus PMI and HOA fees if they apply, to get your total monthly payment.
Private mortgage insurance is generally required on a conventional loan when your down payment is less than 20% of the home price. It protects the lender if you default, and it usually goes away once you reach 20% equity in the home.
Most lenders collect one-twelfth of your annual property tax bill and homeowners insurance premium with each monthly payment, holding the money in an escrow account until those bills are due. That's why your total monthly payment is usually higher than just principal and interest.
Extra principal payments go straight toward reducing your loan balance, so less interest accrues every month after that. Even a modest extra payment can shave years off a 30-year mortgage and save tens of thousands of dollars in interest, since interest is calculated on whatever balance remains.
Mortgages are amortized, meaning interest is calculated on the remaining balance each month. Early on, your balance is at its highest, so a larger share of each payment covers interest. As the balance shrinks, more of each payment goes toward principal.