Mortgage Calculator
Estimate your monthly mortgage payment — principal, interest, taxes, insurance, and HOA — and see exactly how the number is calculated.
Enter your loan details
Updates liveEstimates only. Actual payments depend on your lender, credit profile, PMI, and local tax rates.
Understanding your mortgage payment
A mortgage payment is rarely just one number. Lenders typically bundle four components into a single monthly bill — principal, interest, taxes, and insurance, known as PITI — and this calculator estimates all four so you can see your real, all-in monthly cost rather than just the loan payment.
Use it to compare loan terms, test different down payment amounts, or see how much a lower interest rate would actually save you over the life of the loan.
The mortgage payment formula
The principal and interest portion of your payment is calculated with the standard amortization formula:
What each variable means
- M — your monthly principal and interest payment.
- P — the principal, meaning the home price minus your down payment.
- r — your monthly interest rate, calculated as your annual rate divided by 12, then divided by 100 to convert from a percentage.
- n — the total number of monthly payments, calculated as your loan term in years multiplied by 12.
Property tax and homeowners insurance are added on top of M as simple monthly averages of their annual cost, and HOA dues are added as a flat monthly amount.
Step-by-step: how to use this calculator
- Enter the home price you're considering, or your current loan's original purchase price.
- Enter your planned down payment in dollars. Aim for 20% if you want to avoid PMI on a conventional loan.
- Enter the interest rate your lender quoted, as an annual percentage (APR).
- Choose your loan term — 30 years is most common, 15 years builds equity faster.
- Add property tax and insurance if you know them, so the result reflects your true monthly cost, not just principal and interest.
- The calculator updates automatically. Use Copy share link to save your scenario as a URL, or Print for your records.
Worked example
Suppose you're buying a $400,000 home with a $80,000 (20%) down payment, a 6.25% interest rate, and a 30-year term.
| Step | Value |
|---|---|
| Loan amount (P) | $320,000 |
| Monthly interest rate (r) | 0.0052083 |
| Number of payments (n) | 360 |
| Principal & interest (M) | $1,970.44 |
| + Property tax ($3,600/yr) | $300.00 |
| + Home insurance ($1,400/yr) | $116.67 |
| Total monthly payment (PITI) | $2,387.11 |
| Total interest paid over 30 years | $389,357 |
Try these same numbers in the calculator above to confirm the result — this is exactly how the live tool computes your figure.
Interpreting your results
Your total monthly payment is the number to compare against your budget — most lenders and financial advisors suggest keeping it at or below 28% of your gross monthly income. Your total interest paid shows the true long-term cost of the loan: on a 30-year term, it's common for total interest to approach or exceed the loan amount itself, which is why shortening the term or paying extra toward principal can produce large savings.
Common mistakes to avoid
- Using the home price instead of the loan amount (price minus down payment) when estimating payments.
- Ignoring property tax and insurance, then being surprised by a higher bill from the lender.
- Comparing loans only by monthly payment without checking the interest rate and total interest over the full term.
- Assuming a shorter term is unaffordable without checking — the rate is often lower, so the payment difference may be smaller than expected.
Frequently asked questions
What is included in a monthly mortgage payment?
A typical monthly mortgage payment has four parts, often abbreviated PITI: principal (the portion that reduces your loan balance), interest (the lender's charge for the loan), property taxes, and homeowners insurance. If you have a homeowners association, HOA dues are usually billed separately but are still part of your true monthly housing cost.
How much should my down payment be?
Conventional loans often require as little as 3–5% down, while 20% avoids private mortgage insurance (PMI) on most conventional loans. A larger down payment lowers your loan amount, your monthly payment, and your total interest paid over the life of the loan.
Does this calculator include private mortgage insurance (PMI)?
Not automatically. PMI typically applies when your down payment is below 20% of the home price and generally costs between 0.3% and 1.5% of the loan amount per year. If PMI applies to you, add it to the property tax or HOA field as a rough estimate, or treat it as a separate monthly line item.
Why is my total interest so much higher than my loan amount?
Interest compounds over the full loan term. On a 30-year loan, you're paying interest on the remaining balance every month for 360 months, so cumulative interest can approach or exceed the original loan amount, especially at higher rates. Shortening the term or making extra principal payments reduces this significantly.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has a higher monthly payment but a lower interest rate and far less total interest. A 30-year mortgage has a lower, more manageable monthly payment but costs more in interest overall. The right choice depends on your monthly budget, other financial goals, and how much flexibility you want.
Related calculators
Amortization schedule and refinance breakeven calculators are next in our review pipeline.
Conclusion
Your mortgage payment is shaped by four levers: home price, down payment, interest rate, and loan term. Small changes to any one of them compound significantly over 15–30 years, so it's worth testing a few scenarios above before you commit. Bookmark or copy the share link to compare options side by side.