Mortgage Payment Calculator – Estimate Your Monthly Payment
Our mortgage payment calculator helps you estimate your monthly mortgage payment quickly and accurately. Simply enter your home price, down payment, loan term, and interest rate to see a full breakdown of principal, interest, taxes, insurance, and PMI. Understanding your true monthly housing cost is the first step toward confident homeownership.
The total purchase price of the home.
The upfront amount you will pay. A 20% down payment avoids PMI.
The number of years over which the loan will be repaid.
The annual interest rate on your mortgage loan.
Your estimated annual property tax. Leave 0 to exclude.
Your estimated annual homeowner's insurance premium.
Private Mortgage Insurance — typically required if down payment is less than 20%.
Your results will appear here
How to Use This Calculator
1. Enter the total home price you are considering purchasing. 2. Input your planned down payment amount in dollars. 3. Select your desired loan term (10, 15, 20, 25, or 30 years). 4. Enter the annual interest rate you expect to receive from your lender. 5. Optionally, add your estimated annual property tax and homeowner's insurance to get a complete monthly payment picture. 6. If your down payment is less than 20%, enter your estimated monthly PMI cost. 7. Review the results panel to see your total monthly payment, interest paid over the life of the loan, and total loan cost.
How Is a Mortgage Payment Calculated?
A standard mortgage payment is calculated using the amortization formula, which distributes equal monthly payments across the life of the loan so that both principal and interest are fully paid by the end of the term.
The Amortization Formula
The monthly principal and interest payment (M) is calculated as:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- P = Loan principal (home price minus down payment)
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly payments (years × 12)
Total Monthly Payment Components
Your real monthly housing cost often includes more than just principal and interest:
- Principal & Interest (P&I): The core mortgage payment calculated by the amortization formula.
- Property Tax: Annual property tax divided by 12, typically collected into an escrow account.
- Homeowner's Insurance: Annual premium divided by 12, also often escrowed.
- PMI (Private Mortgage Insurance): Required by most lenders when your down payment is less than 20% of the home's purchase price.
Understanding Loan Term vs. Interest Rate Trade-offs
A shorter loan term (e.g., 15 years) means higher monthly payments but significantly less interest paid over the life of the loan. A longer term (e.g., 30 years) reduces monthly payments but greatly increases total interest costs. Use this calculator to compare both scenarios before committing.
What Is PMI?
Private Mortgage Insurance protects the lender — not you — in case you default. It typically costs between 0.5% and 1.5% of the loan amount annually and can be removed once your loan-to-value ratio drops below 80%.
Tips to Lower Your Mortgage Payment
- Make a larger down payment to reduce the loan principal.
- Shop multiple lenders to secure a lower interest rate.
- Choose a longer loan term to spread payments over more months.
- Improve your credit score before applying to qualify for better rates.
- Avoid PMI by putting down at least 20%.