Mortgage Calculator — Estimate Your Monthly Home Payment

How to Use the Mortgage Calculator

Enter your loan details and the results update instantly. Here is what each input means:

Understanding Your Mortgage Payment

A monthly mortgage payment is usually made up of several parts, often remembered as PITI — Principal, Interest, Taxes, and Insurance. Not every homeowner has all of these:

• Principal — the portion of your payment that reduces the loan balance.
• Interest — the cost of borrowing, charged on the remaining balance each month.
• Property taxes — local taxes, usually collected monthly through escrow.
• Homeowners insurance — coverage for damage and liability, also typically escrowed.
• PMI — private mortgage insurance, required on most conventional loans below 20% down.
• HOA dues — monthly fees in some condos and planned communities.

If you put 20% down on a conventional loan, you typically will not pay PMI. If your property has no HOA, that cost is zero. The calculator only shows the components that apply to your inputs.

How Mortgage Payments Are Calculated

For a fixed-rate loan, the monthly principal-and-interest payment comes from a standard formula that spreads repayment evenly across every payment:

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

• M = monthly principal-and-interest payment
• P = loan amount (home price minus down payment)
• r = monthly interest rate (annual rate ÷ 12)
• n = total number of payments (years × 12)

Each payment covers the interest on the remaining balance first, and the rest goes to principal. Because the balance shrinks over time, the interest portion shrinks too — which is why early payments are mostly interest and later ones are mostly principal. Taxes, insurance, PMI, and HOA are then added on top to get your total monthly housing cost. For a deeper explanation, read our guide on how mortgage payments are calculated.

Example Mortgage Calculation

Hypothetical example — not a current rate or loan offer.

Suppose you buy a $350,000 home with a 20% down payment ($70,000), financing $280,000 at a 6.5% annual rate over 30 years:

• Loan amount (P): $280,000
• Monthly rate (r): 0.065 ÷ 12 ≈ 0.005417
• Number of payments (n): 30 × 12 = 360

Plugging these into the formula gives a monthly principal-and-interest payment of about $1,769.79. Over 360 payments, that is roughly $637,125 total — meaning about $357,125 is interest on top of the $280,000 borrowed.

Add property taxes (say, 1% of price, or about $292/month), insurance (about $125/month), and any PMI or HOA, and you get the full monthly housing cost. The calculator does all of this automatically from your inputs.

Ways Your Monthly Payment Can Change

Frequently Asked Questions

How accurate is this mortgage calculator?

The calculator uses the standard amortizing-loan formula, so the principal-and-interest figure is exact for the inputs you enter. Real-world totals differ because taxes, insurance, PMI, and HOA change over time and lenders may round or escrow differently. Treat results as solid estimates, not quotes — and verify with your lender.

Does the calculation include property taxes?

Yes. You can enter property taxes as a percentage of home value per year or as a direct annual amount. The calculator divides that by 12 and adds it to your monthly payment, just as a lender does through an escrow account.

What is PMI?

PMI (private mortgage insurance) is a monthly cost on most conventional loans when you put less than 20% down. It protects the lender, not you, and can usually be removed once your loan-to-value ratio reaches 80%. The calculator can estimate it automatically or use a manual figure.

How much should I put down on a house?

There is no single right answer. Twenty percent down avoids PMI on conventional loans and lowers your payment, but many programs allow 3–10% down. The right amount depends on your savings, monthly budget, and how long you plan to stay. Use the calculator to compare down payment levels side by side.

What is the difference between a 15-year and 30-year mortgage?

A 15-year loan has a higher monthly payment but far less total interest and usually a lower rate. A 30-year loan keeps payments lower and more flexible. You can compare them directly with our Loan Comparison tool.

Why does the interest rate affect my payment so much?

Because interest is charged on the remaining balance every month for the entire term, even a small rate change compounds across hundreds of payments. On a $280,000, 30-year loan, the difference between 6% and 7% is about $184 a month — and roughly $66,000 over the life of the loan.

Are HOA fees included?

Yes. If you enter a monthly HOA amount, it is added to your total monthly housing cost. HOA dues are common in condos and planned communities and count toward your housing expense.

Can I use the calculator before getting pre-approved?

Absolutely. The calculator is designed for planning before you talk to a lender. Enter realistic estimates for price, down payment, and rate to see what your payment could look like. Pre-approval from a lender will then confirm what you actually qualify for.

Mortgage Calculators & Tools

Mortgage Guides

Step-by-step explanations of how mortgages actually work — the math, the trade-offs, and the costs — with worked examples so you can run your own numbers.

• How Mortgage Payments Are Calculated
• How Much House Can I Afford?
• 15-Year vs 30-Year Mortgage
• How Down Payments Affect Your Mortgage
• What Is Private Mortgage Insurance (PMI)?
• Fixed-Rate vs Adjustable-Rate Mortgages
• How Mortgage Interest Works
• Property Taxes and Homeowners Insurance Explained
• How Extra Mortgage Payments Affect Your Loan
• Mortgage Amortization Explained

See the full library on the Mortgage Guides page, or browse the Mortgage Blog and Resources (glossary and FAQ).

About This Site

MortgageCalculatorApp provides free mortgage planning calculators and educational information to help people better understand potential housing costs before they borrow. Every calculator runs entirely in your browser — the figures you enter are never sent to a server or stored in an account. There is no sign-up, no login, and no data collection. The site is an independent educational resource and is not a mortgage lender, broker, bank, or financial adviser. Learn more on the About page, read how the math works on the Methodology page, or contact us.