Mortgage Calculator
Calculate monthly mortgage payments including principal, interest, property tax, and insurance.
How to Use
- 1
Enter home price and down payment
Type your home price and the down payment you plan to make.
- 2
Set rate and term
Enter the annual interest rate and select your loan term.
- 3
Add optional costs
Enter annual property tax and home insurance for a full monthly payment estimate.
- 4
View results
See your total monthly payment broken down by component.
How It Works
Your monthly mortgage payment is usually more than just principal and interest — lenders in the US typically bundle in property tax and homeowners insurance (sometimes called PITI: Principal, Interest, Taxes, Insurance) into one monthly figure.
Principal & interest
Calculated the same way as any amortizing loan: M = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the loan amount (home price minus down payment), r is the monthly rate, and n is the number of months in the term (e.g. 360 for 30 years).
Taxes and insurance
Monthly property tax and monthly homeowners insurance are added on top of the principal & interest figure to show your realistic total monthly outlay — this is the number that determines whether you can actually afford the home month to month.
Examples
$400,000 home, 20% down, 30-year fixed at 6.5%
Loan amount = $320,000. Monthly principal & interest ≈ $2,022. Add ~$400/month property tax and ~$120/month insurance, and the realistic total payment is closer to $2,542/month — significantly more than the P&I figure alone.
Effect of down payment size
Putting 20% down ($80,000) instead of 10% ($40,000) on the same $400,000 home cuts the loan to $320,000 from $360,000, lowering the monthly P&I by roughly $227 — and at under 20% down, most US lenders also add Private Mortgage Insurance (PMI) until you build 20% equity.
Common Use Cases
- Estimating what home price you can afford at a given monthly budget
- Comparing 15-year vs 30-year fixed terms — shorter terms mean higher payments but far less total interest
- Seeing how a larger down payment changes both the monthly payment and whether PMI applies
- Budgeting realistic monthly housing cost including tax and insurance, not just the loan payment
Tips
- A 30-year term has a lower monthly payment than a 15-year term, but you'll pay roughly double the total interest over the life of the loan for the same rate.
- If your down payment is under 20%, budget for PMI on top of P&I, taxes, and insurance until you reach 20% equity.
- Property tax and insurance vary a lot by location — use your actual county tax rate and an insurance quote rather than a generic estimate when deciding if a home is affordable.
Frequently Asked Questions
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