Mortgage Calculator
Use our mortgage calculator to estimate your monthly mortgage payment, principal and interest, property taxes, homeowners insurance, PMI, and other homeownership costs.
Mortgage Details
See How Extra Payments Can Save You Money
How Much House Can I Afford? (Estimate)
Estimated Monthly Payment
Total Cost of Mortgage
Loan Amount
$0
Total Interest
$0
Total Payments (Incl. Taxes & Ins)
$0
Compare Mortgage Terms
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Amortization Schedule
How to Use This Mortgage Calculator
Our comprehensive mortgage calculator helps you understand exactly how much a home will cost you each month. Simply enter the home price, your expected down payment, and the loan details. You can expand the Advanced Options section to fine-tune your estimates for property taxes, homeowners insurance, HOA fees, and Private Mortgage Insurance (PMI).
How Mortgage Payments Are Calculated
A true mortgage payment is more than just paying back the money you borrowed. Most lenders require you to pay property taxes and homeowners insurance through an escrow account, meaning they are bundled into your monthly bill. This calculator accounts for all these variables to give you an accurate estimate.
Mortgage Payment Formula
The standard mathematical formula used to calculate the fixed-rate monthly principal and interest payment is:
Where:
- M = Total monthly payment (Principal & Interest)
- P = The principal loan amount
- r = Your monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years multiplied by 12)
What Is Included in a Mortgage Payment?
Principal and Interest
The principal is the actual amount of money you borrowed to buy the home. Interest is the cost charged by the lender for borrowing that money. In the early years of a 30-year mortgage, the majority of your payment goes toward interest.
Property Taxes
Property taxes are assessed by your local government and are used to fund public services like schools, police, and fire departments. The national average is slightly over 1%, but this varies wildly depending on your location in the US.
Homeowners Insurance
Lenders require you to carry homeowners insurance to protect the property against damage (like fire or severe weather). This is usually rolled into your monthly payment via an escrow account.
PMI (Private Mortgage Insurance)
If you put down less than 20% on a conventional loan, lenders will require you to pay PMI. This protects the lender in case you default on the loan. PMI typically costs between 0.5% and 1% of the total loan amount per year.
HOA Fees
If you are buying a condo, townhome, or a house in a planned community, you may have to pay Homeowners Association (HOA) fees. These cover the maintenance of common areas and shared amenities.
15-Year vs 30-Year Mortgage
The two most common loan terms in the US are 15 years and 30 years. A 30-year mortgage spreads your payments out over a longer period, resulting in a lower monthly payment, making it easier to qualify for a loan. A 15-year mortgage has higher monthly payments, but you build equity much faster and pay significantly less in total interest over the life of the loan. Use our comparison table in the calculator above to see the difference!
How Extra Mortgage Payments Save Interest
Paying even a little extra each month toward your mortgage principal can have a massive impact over time. Because mortgage interest compounds on the outstanding balance, every extra dollar you pay today reduces the interest calculated tomorrow. Use our Extra Payments tool to see how shaving years off your loan term can save you tens of thousands of dollars.
Mortgage Calculator FAQs
What is a mortgage calculator?
A mortgage calculator is a tool that helps you estimate your monthly home loan payments based on the home price, down payment, interest rate, and loan term. Advanced calculators like ours also factor in property taxes, homeowners insurance, PMI, and HOA fees to give you a complete picture of your monthly housing costs.
How much is a $300,000 mortgage payment?
A $300,000 mortgage payment depends on your interest rate and loan term. For example, on a 30-year fixed-rate mortgage at 6.5%, the principal and interest payment is approximately $1,896 per month. Remember to add property taxes, insurance, and potential PMI or HOA fees for the total payment.
How much is a $400,000 mortgage payment?
For a $400,000 loan on a 30-year term at a 6.5% interest rate, the principal and interest payment is roughly $2,528 per month. Total monthly costs will be higher once property taxes and homeowners insurance are included.
How much is a $500,000 mortgage payment?
A $500,000 loan amortized over 30 years at 6.5% interest results in a monthly principal and interest payment of about $3,160. Additional costs like taxes and insurance will increase the overall monthly obligation.
How much house can I afford?
A common rule of thumb is the 28/36 rule, which suggests that you spend no more than 28% of your gross monthly income on housing expenses, and no more than 36% on total debt (including housing, student loans, car payments, etc.). You can use our Affordability section in the calculator above to get an estimate based on your income.
What is included in a monthly mortgage payment?
A typical mortgage payment includes Principal (the loan amount), Interest (the cost of borrowing), Property Taxes, and Homeowners Insurance. This is often referred to as PITI. It may also include Private Mortgage Insurance (PMI) if your down payment was less than 20%, and HOA fees depending on the property.
How much should I put down on a house?
While 20% is the traditional down payment required to avoid paying Private Mortgage Insurance (PMI), many buyers put down less. Some loan programs allow down payments as low as 3% or even 0% (like VA or USDA loans). However, a larger down payment lowers your monthly payment and saves you money on interest over the life of the loan.
What is PMI?
PMI stands for Private Mortgage Insurance. It is a type of insurance that lenders typically require you to buy if you make a down payment of less than 20% of the home's purchase price. It protects the lender in case you default on the loan.
How does mortgage interest work?
Mortgage interest is calculated dynamically based on your outstanding loan balance. In the early years of a mortgage, a larger portion of your monthly payment goes toward interest. As you pay down the principal balance over time, the interest portion of your payment decreases, and more of your payment goes toward principal.
Is a 15-year mortgage better than a 30-year mortgage?
It depends on your financial goals. A 15-year mortgage has higher monthly payments but typically a lower interest rate, meaning you pay significantly less total interest over the life of the loan. A 30-year mortgage has lower, more affordable monthly payments, giving you more cash flow, but costs more in total interest over time.
Can I pay off my mortgage early?
Yes, making extra payments toward your principal can significantly shorten the life of your loan and save you thousands in interest. You can use the 'Extra Payments' section of our calculator to see exactly how much time and money you can save. Be sure to check with your lender to ensure there are no prepayment penalties.
Does a mortgage calculator include property taxes and insurance?
Basic calculators only compute principal and interest. However, our advanced Mortgage Calculator allows you to include property taxes, homeowners insurance, PMI, and HOA fees to give you a highly accurate estimate of your true monthly costs.