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🏠 Mortgage Calculator

Calculate your monthly mortgage payment with taxes, insurance, and PMI included.

Loan Details

Payment Summary

Loan Amount:$240,000
Principal & Interest:$1,516.96
Property Tax:$125
Insurance:$12.5
Total Monthly Payment:$1,654.46
Total Interest Over 30 Years:$306,106.77

Principal vs Interest (30 Years)

Amortization Schedule

MonthPaymentPrincipalInterestBalance
1$1516.96$216.96$1300.00$239783.04
2$1516.96$218.14$1298.82$239564.90
3$1516.96$219.32$1297.64$239345.58
4$1516.96$220.51$1296.46$239125.07
5$1516.96$221.70$1295.26$238903.37
6$1516.96$222.90$1294.06$238680.46
7$1516.96$224.11$1292.85$238456.35
8$1516.96$225.32$1291.64$238231.03
9$1516.96$226.55$1290.42$238004.48
10$1516.96$227.77$1289.19$237776.71
11$1516.96$229.01$1287.96$237547.71
12$1516.96$230.25$1286.72$237317.46
24$1516.96$245.67$1271.30$234455.26
36$1516.96$262.12$1254.84$231401.38
48$1516.96$279.67$1237.29$228142.97
60$1516.96$298.40$1218.56$224666.35
72$1516.96$318.39$1198.57$220956.88
84$1516.96$339.71$1177.25$216998.99
96$1516.96$362.46$1154.50$212776.03
108$1516.96$386.74$1130.23$208270.24
120$1516.96$412.64$1104.32$203462.70
132$1516.96$440.27$1076.69$198333.19
144$1516.96$469.76$1047.20$192860.15
156$1516.96$501.22$1015.74$187020.56
Showing first 24 months. Full schedule available for export.

How This Tool Works

What Does a Mortgage Calculator Actually Do?

At its core, a mortgage calculator takes the four biggest variables in your home loan — the principal amount, the interest rate, the loan term, and your down payment — and combines them into a single, clear monthly payment figure. But a truly useful mortgage calculator goes further than that. It factors in property taxes, homeowner’s insurance, and sometimes PMI (Private Mortgage Insurance) to give you a realistic picture of what you’ll actually write a check for every month, not just the bank’s cut of the deal. That distinction matters enormously when you’re budgeting for a new home.

How the Monthly Payment Is Calculated

The math behind your monthly mortgage payment is based on a standard amortization formula. Amortization simply means your loan is structured so that each payment covers the interest owed for that month plus a portion of the principal — and over time, the balance between those two shifts. In the early years of your mortgage, the majority of each payment goes toward interest. As the years pass and your principal shrinks, more of each payment chips away at what you actually borrowed. This is why making even small extra payments early in your loan term can save you a surprising amount of money over the life of the loan.

What’s Included in a Full Monthly Payment Estimate

When lenders talk about your monthly mortgage payment, they often refer to it as PITI — Principal, Interest, Taxes, and Insurance. Here’s what each piece covers:

  • Principal: The portion of your payment that reduces your actual loan balance.
  • Interest: The lender’s fee for lending you the money, calculated as a percentage of your remaining balance.
  • Property Taxes: Collected monthly by your lender and held in an escrow account, then paid to your local government on your behalf.
  • Homeowner’s Insurance: Protects your property against damage or loss — also typically escrowed by your lender.
  • PMI (if applicable): Required if your down payment is less than 20% of the home’s purchase price. It protects the lender, not you, and can usually be removed once you reach 20% equity.

Running the numbers through this calculator before you ever talk to a lender puts you in a much stronger position — you’ll know exactly what price range makes sense for your budget and won’t be caught off guard by a monthly figure that stretches you too thin.

Formula / Methodology

The Mortgage Payment Formula (Amortization)

The standard formula used to calculate your fixed monthly mortgage payment is:

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

  • M = Monthly mortgage payment
  • P = Principal loan amount (home price minus your down payment)
  • r = Monthly interest rate (annual interest rate ÷ 12, expressed as a decimal — so 6% annually becomes 0.005 per month)
  • n = Total number of monthly payments (loan term in years × 12 — a 30-year mortgage = 360 payments)

Full Monthly Cost Formula (PITI)

To get your total estimated monthly payment, add the following on top of M:

Total Monthly Payment = M + (Annual Property Tax ÷ 12) + (Annual Homeowner's Insurance ÷ 12) + PMI (if applicable)

Example: On a $350,000 home with a $70,000 down payment (20% down), a 6.5% annual interest rate, and a 30-year term:

  • P = $280,000
  • r = 0.065 ÷ 12 = 0.005417
  • n = 360
  • M ≈ $1,770/month (principal + interest only)

💡 Tips & Best Practices

  • 1Even a 0.5% difference in your interest rate can add up to tens of thousands of dollars over a 30-year loan. Before locking in a rate, get quotes from at least three different lenders — banks, credit unions, and online mortgage lenders often have meaningfully different offers.
  • 2If a 30-year mortgage feels overwhelming, run the numbers on a 15-year term too. Yes, the monthly payment is higher, but you'll pay dramatically less total interest and build equity much faster — sometimes saving over $100,000 on a mid-sized loan.
  • 3Don't forget to account for PMI if your down payment is under 20%. It typically costs between 0.5% and 1.5% of the loan amount per year, which on a $300,000 loan could add $125–$375 to your monthly payment. Factor that in before deciding how much to put down.
  • 4Your debt-to-income ratio (DTI) is just as important as your credit score when qualifying for a mortgage. Most lenders prefer your total monthly debt payments — including your new mortgage — to stay below 43% of your gross monthly income. Use this calculator to find a payment that keeps you comfortably within that range.

Frequently Asked Questions

How do I calculate my monthly mortgage payment?
Your monthly mortgage payment is calculated using an amortization formula that factors in your loan principal (the amount you borrowed), your annual interest rate divided into monthly increments, and the total number of payments over your loan term. For a complete real-world estimate, you also need to add property taxes and homeowner's insurance — those are typically collected monthly by your lender through an escrow account. Our calculator handles all of that automatically once you enter your home price, down payment, interest rate, and loan term.
What is a good interest rate for a mortgage?
What counts as a 'good' mortgage interest rate shifts constantly based on broader economic conditions, your credit score, your loan type, and your down payment. As a general rule, borrowers with credit scores above 740 and a down payment of 20% or more tend to qualify for the most competitive rates. The best way to know if you're getting a good rate is to compare offers from multiple lenders at the same time — even a small difference in rate has a large impact on your total cost over a 15 or 30-year loan.
How much house can I afford based on my income?
A widely used guideline is to keep your total monthly housing costs — including principal, interest, taxes, and insurance — at or below 28% of your gross monthly income. Your total debt payments (housing plus car loans, student loans, credit cards, etc.) should ideally stay under 43%. So if you earn $6,000 per month before taxes, a reasonable target is a total mortgage payment under $1,680. Use this calculator to test different home prices and down payment amounts until you find a monthly figure that fits comfortably within those boundaries.
Does property tax affect my monthly mortgage payment?
Yes, and it's one of the most commonly underestimated costs in homeownership. Most lenders require you to pay property taxes through an escrow account, meaning your lender collects a portion of your estimated annual tax bill each month along with your principal and interest payment. Property tax rates vary significantly by location — from under 0.5% of a home's assessed value in some states to over 2% in others. On a $400,000 home in a high-tax area, that could add $600 or more to your monthly payment, so always include it when calculating what you can afford.

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