30 Years
20 Years
15 Years
10 Years
Please enter valid numeric values for all fields.
Estimated Monthly Payment
$0.00
Principal & Interest
$0.00
Property Tax (Monthly)
$0.00
Home Insurance (Monthly)
$0.00
Total Interest Paid (Life of Loan)
$0.00
Comprehensive Mortgage Payment Calculator
Purchasing a home is one of the most significant financial decisions you will make. This Mortgage Calculator helps you estimate your monthly housing costs by factoring in the principal, interest, taxes, and insurance (often referred to as PITI).
How Is Your Mortgage Payment Calculated?
Your monthly payment is determined by four primary components:
- Principal: The amount of money you borrowed to buy the home. As you pay this down, your equity increases.
- Interest: The cost of borrowing the money. This is determined by your annual percentage rate (APR) and the loan term.
- Taxes: Property taxes assessed by your local government, typically collected alongside your mortgage.
- Insurance: Homeowners insurance protects your property against damage and is usually required by lenders.
The Amortization Formula
Standard mortgages use an amortization formula to ensure your payments remain consistent while the ratio of principal to interest changes over time. In the early years of a 30-year mortgage, the majority of your payment goes toward interest. As the loan matures, a larger portion is applied to the principal balance.
Factors Influencing Your Payment
Down Payment: Putting more money down reduces the principal loan amount, which lowers your monthly payment and the total interest paid over the life of the loan. A down payment of 20% or more also typically eliminates the need for Private Mortgage Insurance (PMI).
Loan Term: A 30-year term offers lower monthly payments but results in higher total interest costs. Conversely, a 15-year term has higher monthly payments but saves significantly on interest.
Example Calculation
If you purchase a home for $350,000 with a $70,000 down payment (20%), your loan amount is $280,000. At a fixed interest rate of 6.5% over 30 years:
- Your Principal & Interest payment would be approximately $1,770.
- Adding typical taxes and insurance (e.g., $450/month) brings the total to roughly $2,220.
Use the calculator above to input your specific numbers and find the financing option that fits your budget.