Mortgage Calculator
Estimate your monthly payment and total loan cost before you commit to a purchase or refinance.
Need a walkthrough? Read the Mortgage Calculator Guide.
Mortgage Calculator
How Mortgage Calculation Works
The Mortgage Calculator estimates your monthly mortgage payment including principal, interest, property taxes, and insurance (PITI). Enter the home price, down payment, interest rate, and loan term to understand the true monthly cost of homeownership.
Formula
Monthly P and I = P x [r(1+r)^n] / [(1+r)^n - 1] where P=loan amount, r=monthly interest rate, n=number of payments
Key Features
- ✓Full PITI payment breakdown (Principal, Interest, Tax, Insurance)
- ✓Adjustable down payment with PMI calculation
- ✓Amortization schedule showing equity buildup
- ✓Compare 15-year vs. 30-year loan scenarios
Pro Tip
A 20% down payment eliminates Private Mortgage Insurance (PMI), which typically costs 0.5-1% of the loan amount annually. If you cannot put 20% down, factor PMI into your monthly budget.
Reference links
Home budget check
Estimate the full ownership payment, not just principal and interest
Mortgage affordability depends on the full monthly housing cost. Use the result with taxes, insurance, down payment, closing costs, and future maintenance before making an offer.
Reference points
Methodology
- Calculate principal and interest from loan amount, interest rate, and term.
- Add property taxes, insurance, HOA fees, and mortgage insurance where relevant.
- Compare scenarios with different down payments, rates, and terms before locking a lender decision.
Practical examples
- A $300,000 loan at 6 percent for 30 years has principal and interest near $1,799 per month.
- Adding $450 taxes and $120 insurance puts the estimated payment near $2,369 before HOA or maintenance.
- A lower rate can create meaningful savings, but closing costs decide whether refinancing pays off.
Common mistakes to avoid
- Do not use principal and interest as the full housing budget.
- Do not forget closing costs, moving costs, repairs, and emergency reserves.
- Do not compare fixed and variable rates without modelling payment shock risk.
Who this is for
- Buyers who need a payment that fits the monthly budget before making an offer.
- Landlords who want to separate the loan payment from rent and operating expenses.
- Investors who are comparing rate, term, and down payment scenarios side by side.
When to use this calculator
- Before making an offer to confirm the payment fits your budget.
- When comparing rate options or loan terms.
- While planning a refinance to see potential savings.
Worked example
A buyer planning a $300,000 loan at 6.0% for 30 years is looking at about $1,799 per month in principal and interest. If property taxes run $450 and insurance is $120, the full housing payment is closer to $2,369 before HOA dues or maintenance.
Assumptions to keep in mind
Treat this as the loan-payment piece of the decision. Taxes, insurance, HOA dues, and upkeep can change the real monthly cost, so rerun the numbers if any of those items move.
What to do next
Validate the cash you need at closing and then check the property tax impact on your budget.
Next best tool: Closing Cost Calculator
Also useful: Property Tax Estimator and Property Comparator.
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These links stay within the same decision path so you can move to the next calculation without starting over.
How these links are chosen
We only link to closely related pages so each next step supports the same decision.
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