Mortgage Calculator – Estimate Your Monthly Payment
Use our free mortgage calculator to estimate your monthly payment, including principal, interest, property taxes, homeowners insurance, PMI, and HOA fees. Enter your loan amount, interest rate, and loan term to see your total monthly housing payment and lifetime loan cost.
Mortgage Payment Calculator
How the Calculation Works
Formula: Monthly Payment = [Loan Amount × (Interest Rate / 12) × (1 + Interest Rate / 12)^(Months)] / [(1 + Interest Rate / 12)^(Months) - 1]
This calculator uses the standard amortization formula to calculate principal and interest. It then adds estimated property taxes (based on your input), homeowners insurance, private mortgage insurance (PMI, if applicable), and HOA fees to show your total monthly housing payment.
Key Inputs: The interest rate shown is your annual rate divided by 12 for monthly calculations. The loan term determines how many months you'll be paying. Property taxes and insurance are estimates and vary by location.
Important Note: This is an estimate only. Your actual payment may vary based on your lender's fees, your credit score, local tax rates, and insurance costs. Always verify with your lender before making a decision.
Worked Example
Example: You're buying a $350,000 home with a $70,000 down payment (20%), leaving a $280,000 loan at 6.5% interest over 30 years.
- Principal & Interest: $1,769.79/month
- Property Tax (estimated 1.1%): $320.83/month
- Homeowners Insurance (estimated): $150/month
- PMI: $0 (you have 20% down)
- HOA (if applicable): $0
- Total Estimated Monthly Payment: $2,240.62/month
- Total Interest Over 30 Years: $357,124.57
How to Use This Calculator
Understanding Your Results:
- Principal: The amount you're borrowing for the home
- Interest: The cost of borrowing the money
- Property Taxes: Taxes paid to your local government (varies significantly by location)
- Homeowners Insurance: Protection against loss or damage to your home
- PMI (Private Mortgage Insurance): Many lenders require mortgage insurance if your down payment is less than 20%. However, mortgage insurance requirements and types vary by lender, loan program, and borrower circumstances. Some loans may use different insurance products or have different requirements.
- HOA Fees: Monthly fees for homeowners association maintenance
Your total monthly housing cost is important for determining whether a home is affordable. Many lenders use the "28/36 rule" as a general guideline: housing costs should typically not exceed 28% of your gross income, and total debt should typically not exceed 36%. However, lending standards vary by lender and loan program, and some lenders may use different criteria.
Frequently Asked Questions
How is a mortgage payment calculated?
Your monthly payment is calculated using an amortization formula based on your loan amount, interest rate, and loan term. The calculator adds estimated property taxes, insurance, PMI (if applicable), and HOA fees to show your total monthly housing payment.
What is PMI and when is it required?
PMI (Private Mortgage Insurance) is insurance that protects the lender if you default on your loan. Many lenders require mortgage insurance if your down payment is less than 20%, though requirements vary by lender, loan type, and borrower situation. Different mortgage insurance products exist, and requirements differ across programs. You may be able to remove PMI once you reach 20% equity, but this also varies by loan terms and lender policy. Always verify specific requirements and options with your lender.
Does this calculator include property taxes and insurance?
Yes, this calculator includes estimated property taxes and homeowners insurance. However, these vary significantly by location and individual circumstances. Always verify actual amounts with your lender and insurance provider.
How much does a larger down payment lower my monthly payment?
A larger down payment reduces the amount borrowed. The resulting payment difference depends on the loan amount, interest rate, loan term, and other housing costs.
How does interest rate affect my mortgage payment?
A higher interest rate generally increases principal-and-interest cost. The dollar impact depends on the loan balance, loan term, and size of the rate change. Use the calculator to compare specific scenarios.
Can I pay off my mortgage early?
Yes. You can pay extra toward principal each month, make biweekly payments instead of monthly, or make a lump-sum payment toward principal. Try our Mortgage Payoff Calculator to see how extra payments can save you money.