🏠 Mortgage Payment Calculator
Estimate your full monthly mortgage payment — not just principal and interest, but property taxes, home insurance and PMI too — and see how much interest the loan costs over its life.
How your monthly mortgage payment is calculated
A mortgage payment has up to four parts, often abbreviated PITI: principal, interest, taxes and insurance. The principal and interest portion is fixed for the life of a fixed-rate loan and is found with the standard amortization formula:
M = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]
where P is the amount borrowed, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments (years × 12). Property tax and insurance are added on top and usually collected monthly into an escrow account. If your down payment is under 20%, most lenders also add private mortgage insurance (PMI) until you build enough equity.
Why the interest total is so large
In the early years, most of each payment goes to interest rather than principal. On a 30-year loan at 6.5%, you can easily pay more in total interest than the original loan amount. Two levers cut that dramatically: a shorter term and a lower rate. Switching from a 30-year to a 15-year term roughly doubles the principal you retire each month but can cut lifetime interest by more than half.
How to lower your payment
- Larger down payment: borrow less and, at 20%, drop PMI entirely.
- Shop the rate: even a 0.25% difference on a large loan is thousands of dollars. Get quotes from several lenders in a short window so it counts as a single credit inquiry.
- Buy points carefully: paying to lower your rate only pays off if you keep the loan past the break-even point.
- Appeal your tax assessment or shop insurance yearly — the escrow portion is real money too.
Frequently asked questions
Does this mortgage calculator include taxes and insurance?
Yes. It adds estimated monthly property tax, homeowners insurance, and PMI (when your down payment is under 20%) on top of principal and interest, so the total is closer to what you'll actually pay.
What is PMI and when do I pay it?
Private mortgage insurance protects the lender when you put down less than 20%. It's added to your monthly payment and typically drops off once you reach about 20% equity. Put in 0% PMI if you're making a 20%+ down payment.
How much house can I afford?
A common guideline is keeping total housing costs under 28% of your gross monthly income and total debt under 36%. Enter different prices and down payments here to see which monthly payment fits that range for you.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has higher monthly payments but a lower rate and far less total interest. A 30-year loan keeps payments low and flexible. Compare both terms above and weigh the monthly cost against the lifetime interest.
These calculators provide general estimates for educational purposes and do not constitute financial, tax, or legal advice. Figures are approximate; verify with a qualified professional and your lender before making decisions.