Money tools

Mortgage Calculator

Estimate your full monthly payment — principal, interest, taxes, and insurance — plus total interest over the life of the loan. Every result shows the formula behind it.

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How this calculator works

Your monthly principal & interest comes from the standard amortization formula:

M = P · r(1 + r)n / ((1 + r)n − 1)
  • P = loan amount (home price − down payment)
  • r = monthly interest rate (annual rate ÷ 12 ÷ 100)
  • n = number of payments (loan term in years × 12)

We then add monthly property tax (annual ÷ 12), monthly home insurance (annual ÷ 12), and any HOA dues to get your full monthly payment — the figure lenders call PITI.

Worked example

On a $400,000 home with $80,000 down (a $320,000 loan) at 6.5% over 30 years, principal & interest is about $2,023/month. Add ~$400 tax and ~$125 insurance and the full payment is roughly $2,548/month, with about $408,000 of total interest.

Tips to lower your payment

  • Increase your down payment to shrink the loan and avoid PMI (20%+).
  • Shop lenders — even 0.25% off the rate saves thousands over 30 years.
  • Consider a shorter term: higher monthly payment, far less total interest.

Frequently asked questions

How is the monthly mortgage payment calculated?

The principal and interest portion uses the standard amortization formula: M = P · r(1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Property tax, home insurance, and HOA dues are added on top.

What is included in the total monthly payment?

This calculator adds four parts, often called PITI plus HOA: principal, interest, property taxes, and homeowners insurance, plus any monthly HOA dues. Lenders use this full figure to judge affordability.

Does a bigger down payment lower my payment?

Yes. A larger down payment reduces the loan amount, which lowers both the monthly principal-and-interest and the total interest paid over the life of the loan. Putting down 20% or more also typically avoids private mortgage insurance (PMI).

Is this calculator accurate for my exact loan?

It gives a close estimate using standard formulas, but your lender’s figures may differ slightly due to PMI, exact tax assessments, escrow rules, and rounding. Always confirm with a loan estimate from your lender.