Mortgage Calculator
Estimate your monthly mortgage payment including principal, interest, property tax and home insurance.
How a mortgage payment is calculated
A standard fixed-rate mortgage uses an amortization formula to determine a constant monthly payment that pays off the loan over the agreed term. The payment covers principal (the loan balance) and interest. Lenders also typically require an escrow contribution toward property tax and home insurance — the four together are called PITI.
The amortization formula
M = P × [r(1 + r)n] / [(1 + r)n − 1]
- M — monthly principal & interest payment
- P — loan amount (home price minus down payment)
- r — monthly interest rate (annual rate ÷ 12)
- n — number of monthly payments (years × 12)
Down payment, PMI and the 20% rule
A larger down payment reduces the loan amount, monthly payment and total interest paid. Conventional loans in the US typically require Private Mortgage Insurance (PMI) when the down payment is less than 20%. PMI is not included in this calculator; add it manually under "Home Insurance" if your lender charges it.
Frequently Asked Questions
15-year vs. 30-year mortgage — which is better?
A 15-year mortgage has higher monthly payments but dramatically lower total interest and faster equity build-up. A 30-year mortgage offers lower monthly payments and more cash flow flexibility. Pick based on your budget and how long you plan to keep the home.
Should I pay extra each month?
Even small extra payments toward principal can save tens of thousands in interest and shorten the loan by years. Always confirm with your lender that extra payments are applied to principal rather than future scheduled payments.
What about HOA fees?
Homeowners Association fees are not part of the mortgage payment itself but are a real recurring cost. Add them to your monthly housing budget when comparing properties.