Calculate your monthly mortgage payment
💡 Why This Matters Your monthly mortgage payment is more than just principal and interest. Property taxes and insurance add up fast—this calculator reveals the true cost of homeownership so you can budget with confidence.
Making one extra mortgage payment per year — or splitting your payment in half and paying biweekly — can shave several years off a 30-year loan and save tens of thousands in interest.
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A mortgage calculator is an essential tool for anyone looking to buy a home. It helps you understand your monthly payment breakdown, including principal, interest, taxes, and insurance—so you can budget properly before committing to a home loan.
Mortgage payments are calculated using the loan amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal loan amount, r is monthly interest rate, and n is number of payments. Your monthly payment stays constant, but the portion going to principal vs. interest shifts over time.
Principal: The portion of your payment that pays down the loan balance.
Interest: The cost of borrowing, determined by your interest rate.
Property Taxes: Typically 1-2% of home value annually, collected monthly in your mortgage payment.
Homeowners Insurance: Required by lenders, usually $1,000-3,000 annually depending on location and coverage.
Your credit score is the biggest factor—scores above 740 get the best rates. Down payment size also matters; 20% or more avoids private mortgage insurance (PMI). Loan type (30-year vs. 15-year, fixed-rate vs. adjustable) affects both your rate and monthly payment.
Use this calculator to compare scenarios: different home prices, down payments, interest rates, and loan terms. Understanding your monthly commitment helps you avoid being house-poor and ensures your mortgage fits comfortably in your budget.
Example: Say you buy a $300,000 home with a $60,000 down payment (20%), a 6.5% rate, and a 30-year term. Your principal is $240,000. Plug that into the amortization formula and your principal + interest comes out to roughly $1,517/month — add $250/month property tax and $100/month insurance, and your total monthly payment lands around $1,867.
Using the loan amortization formula M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is the principal loan amount, r is the monthly interest rate, and n is the total number of payments.
Principal and interest make up the loan payment itself, while property taxes and homeowners insurance are typically added on top and collected monthly as part of your total payment.
A down payment of 20% or more of the home price typically avoids private mortgage insurance (PMI), which lenders require on lower down payments to protect against default risk.