Mortgage Calculator

Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and other costs. Get a complete breakdown of your home loan expenses.

Enter Your Information

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20.0% of home price

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Typical range: 0.5% - 2% of home value annually

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Average: $1,000 - $2,000 per year

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Required if down payment < 20%

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How the Mortgage Calculator Works

This mortgage calculator uses the standard amortization formula to calculate your monthly payment. The calculation takes into account:

  • Principal: The amount you borrow (home price minus down payment)
  • Interest Rate: The annual percentage rate (APR) on your loan
  • Loan Term: The number of years to repay the loan
  • Property Taxes: Annual property taxes divided by 12
  • Home Insurance: Annual homeowners insurance divided by 12
  • PMI: Private mortgage insurance if down payment is less than 20%
  • HOA Fees: Monthly homeowners association fees (if applicable)

The Mortgage Payment Formula

The monthly principal and interest payment is calculated using:

M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]

Where:

  • M = Monthly payment
  • P = Principal loan amount
  • r = Monthly interest rate (annual rate / 12)
  • n = Number of payments (years × 12)

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Frequently Asked Questions

How is my monthly mortgage payment calculated?

Your monthly mortgage payment is calculated using the loan amount, interest rate, and loan term. The formula accounts for principal and interest (P&I), which is then added to property taxes, insurance, PMI (if applicable), and HOA fees to get your total monthly payment.

What is PMI and when do I need it?

PMI (Private Mortgage Insurance) is typically required when your down payment is less than 20% of the home price. It protects the lender if you default on the loan. Once you reach 20% equity, you can usually request to have PMI removed.

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

A 15-year mortgage has higher monthly payments but significantly lower total interest paid. A 30-year mortgage has lower monthly payments but higher total interest. Choose based on your budget and financial goals.

How much down payment should I make?

While 20% is traditional and avoids PMI, many loans allow as little as 3-5% down. A larger down payment reduces your loan amount, monthly payment, and total interest paid, but consider keeping emergency savings.

What is included in my total monthly payment?

Your total monthly payment typically includes: Principal & Interest (P&I), Property Taxes, Homeowners Insurance, PMI (if applicable), and HOA fees (if applicable). This is often called PITI or PITIA.

Financial Disclaimer

This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.

Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.

We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.