Mortgage Payment Calculator
Estimate your monthly home loan payments including interest and principal.
Estimated Monthly Payment
$0.00
How to Calculate Your Mortgage Payment
Understanding your monthly mortgage obligation is the most critical step in the home-buying process. This calculator helps you determine the Principal and Interest (P&I) component of your loan. Note that this estimation does not include private mortgage insurance (PMI), property taxes, or homeowners association (HOA) fees, which are often added to your final monthly escrow payment.
Realistic Example:
If you purchase a home for $350,000 with a 20% down payment ($70,000), you are financing $280,000. At a fixed interest rate of 7.0% over 30 years, your estimated monthly principal and interest payment would be approximately $1,862.84.
If you purchase a home for $350,000 with a 20% down payment ($70,000), you are financing $280,000. At a fixed interest rate of 7.0% over 30 years, your estimated monthly principal and interest payment would be approximately $1,862.84.
The Mortgage Formula Explained
Our calculator uses the standard fixed-rate mortgage formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M: Total monthly payment.
- P: Principal loan amount (Home price minus down payment).
- i: Monthly interest rate (Annual rate divided by 12).
- n: Number of months (Loan term in years multiplied by 12).
Factors That Influence Your Monthly Payment
Three primary factors dictate the size of your mortgage check: the loan amount, the interest rate, and the loan term. A shorter term (e.g., 15 years) typically offers lower interest rates but requires significantly higher monthly payments. Conversely, a 30-year term spreads payments out, making them more affordable but increasing the total interest paid over the life of the loan.