Calculate your estimated monthly mortgage payment, including taxes and insurance.
Please enter valid positive numbers for all fields.
Principal & Interest:$0.00
Monthly Property Tax:$0.00
Monthly Home Insurance:$0.00
TOTAL MONTHLY PAYMENT:$0.00
Understanding Your Mortgage Payment
Whether you are a first-time homebuyer or looking to refinance, understanding exactly where your money goes every month is crucial for financial planning. This Mortgage Payment Calculator helps you estimate your total monthly housing costs by factoring in the four key components of a mortgage payment, often referred to as PITI.
Components of Your Monthly Payment (PITI)
Most mortgage payments consist of four distinct parts:
Principal: The portion of your payment that goes directly toward reducing the loan balance. In the early years of a mortgage, this amount is typically smaller.
Interest: The cost of borrowing money paid to the lender. On a standard amortization schedule, interest makes up the bulk of your payment in the beginning.
Taxes: Property taxes assessed by your local government. These are usually collected by the lender in an escrow account and paid annually on your behalf.
Insurance: Homeowners insurance protects your property against damage. Like taxes, this is often divided into monthly payments and held in escrow.
How Interest Rates Affect Affordability
Even a small fluctuation in interest rates can significantly impact your monthly payment and the total cost of your loan. For example, on a $300,000 loan, a 1% increase in interest rate can raise your monthly payment by hundreds of dollars. It is essential to shop around for the best rate and improve your credit score before applying.
The Impact of Down Payment
Your down payment reduces the principal amount you need to borrow. A larger down payment (typically 20% or more) not only lowers your monthly principal and interest payment but also helps you avoid Private Mortgage Insurance (PMI), which is an additional cost for borrowers with less than 20% equity.
Using This Calculator
To get the most accurate estimate, gather your potential home price, expected down payment, and current interest rates. Don't forget to include estimates for property taxes and insurance, as these can add significantly to your monthly obligation. This tool provides a baseline to help you budget effectively for your new home.
function calculateMortgage() {
var homePrice = parseFloat(document.getElementById('mcHomePrice').value);
var downPayment = parseFloat(document.getElementById('mcDownPayment').value);
var interestRate = parseFloat(document.getElementById('mcInterestRate').value);
var loanTerm = parseFloat(document.getElementById('mcLoanTerm').value);
var propertyTax = parseFloat(document.getElementById('mcPropertyTax').value);
var homeInsurance = parseFloat(document.getElementById('mcHomeInsurance').value);
var errorDiv = document.getElementById('mcError');
var resultDiv = document.getElementById('mcResult');
// Validation
if (isNaN(homePrice) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTerm) || isNaN(propertyTax) || isNaN(homeInsurance)) {
errorDiv.style.display = 'block';
resultDiv.style.display = 'none';
return;
}
if (homePrice <= 0 || loanTerm <= 0) {
errorDiv.style.display = 'block';
resultDiv.style.display = 'none';
return;
}
errorDiv.style.display = 'none';
// Calculation Logic
var principal = homePrice – downPayment;
var monthlyInterestRate = interestRate / 100 / 12;
var numberOfPayments = loanTerm * 12;
// Monthly Taxes and Insurance
var monthlyTax = propertyTax / 12;
var monthlyInsurance = homeInsurance / 12;
var monthlyPrincipalInterest = 0;
// Standard Amortization Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
if (interestRate === 0) {
monthlyPrincipalInterest = principal / numberOfPayments;
} else {
var x = Math.pow(1 + monthlyInterestRate, numberOfPayments);
monthlyPrincipalInterest = (principal * x * monthlyInterestRate) / (x – 1);
}
// Total Monthly Payment
var totalMonthly = monthlyPrincipalInterest + monthlyTax + monthlyInsurance;
// Update UI
document.getElementById('resPrincipalInterest').innerHTML = '$' + monthlyPrincipalInterest.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
document.getElementById('resTax').innerHTML = '$' + monthlyTax.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
document.getElementById('resInsurance').innerHTML = '$' + monthlyInsurance.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
document.getElementById('resTotal').innerHTML = '$' + totalMonthly.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
resultDiv.style.display = 'block';
}