Estimate your monthly mortgage payments, including taxes and insurance.
30 Years
20 Years
15 Years
10 Years
Principal & Interest:$0.00
Monthly Tax:$0.00
Monthly Insurance:$0.00
Total Monthly Payment:$0.00
Understanding Your Mortgage Payment
Calculating your monthly mortgage payment is a crucial step in the home-buying process. Our Mortgage Payment Calculator helps you estimate exactly how much you will need to budget each month by factoring in not just the loan repayment, but also the recurring costs of property ownership like taxes and insurance.
Key Takeaway: Your mortgage payment consists of four main components, often referred to as PITI: Principal, Interest, Taxes, and Insurance.
Components of a Mortgage Payment (PITI)
Principal: The portion of your payment that goes toward paying down the loan balance (the price of the home minus your down payment).
Interest: The cost of borrowing money from your lender. This is calculated based on your annual interest rate.
Taxes: Property taxes assessed by your local government, usually bundled into your monthly payment and held in escrow.
Insurance: Homeowners insurance protects your property against damage and liability. Lenders require this coverage.
How Interest Rates Affect Your Payment
Even a small difference in interest rates can have a significant impact on your monthly payment and the total cost of your loan over time. For example, on a $300,000 loan, a 1% increase in interest rate can increase your monthly payment by hundreds of dollars.
Why Use a Mortgage Calculator?
Using a calculator allows you to test different scenarios before you commit to a loan. You can see how increasing your down payment reduces your monthly burden or how choosing a 15-year term instead of a 30-year term affects your cash flow. This empowers you to make financially sound decisions when shopping for a home.
Frequently Asked Questions
Does this calculator include PMI?
This standard calculator focuses on PITI (Principal, Interest, Taxes, Insurance). If your down payment is less than 20%, your lender may require Private Mortgage Insurance (PMI), which would be an additional cost on top of the estimate provided here.
What is a good interest rate?
Interest rates fluctuate based on the economy, inflation, and central bank policies. A "good" rate is generally one that is at or below the current national average for borrowers with your credit score profile.
Should I choose a 15-year or 30-year term?
A 30-year mortgage offers lower monthly payments, making the home more affordable month-to-month. A 15-year mortgage has higher monthly payments but saves you a significant amount of money in interest over the life of the loan.
function calculateMortgage() {
// Get Input Values
var homePrice = parseFloat(document.getElementById('homePrice').value);
var downPayment = parseFloat(document.getElementById('downPayment').value);
var interestRate = parseFloat(document.getElementById('interestRate').value);
var loanTermYears = parseFloat(document.getElementById('loanTerm').value);
var propertyTaxYear = parseFloat(document.getElementById('propertyTax').value);
var insuranceYear = parseFloat(document.getElementById('insurance').value);
// Validate Inputs
if (isNaN(homePrice) || isNaN(downPayment) || isNaN(interestRate) || isNaN(loanTermYears)) {
alert("Please enter valid numbers for all fields.");
return;
}
// Calculations
var principal = homePrice – downPayment;
var monthlyInterest = (interestRate / 100) / 12;
var numberOfPayments = loanTermYears * 12;
// Monthly Principal & Interest (Standard Mortgage Formula)
// M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
var monthlyPI = 0;
if (interestRate === 0) {
monthlyPI = principal / numberOfPayments;
} else {
monthlyPI = principal * ( (monthlyInterest * Math.pow(1 + monthlyInterest, numberOfPayments)) / (Math.pow(1 + monthlyInterest, numberOfPayments) – 1) );
}
// Tax and Insurance per month
var monthlyTax = propertyTaxYear / 12;
var monthlyInsurance = insuranceYear / 12;
var totalMonthly = monthlyPI + monthlyTax + monthlyInsurance;
// formatting function
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
// Update UI
document.getElementById('resPI').innerHTML = formatCurrency(monthlyPI);
document.getElementById('resTax').innerHTML = formatCurrency(monthlyTax);
document.getElementById('resIns').innerHTML = formatCurrency(monthlyInsurance);
document.getElementById('resTotal').innerHTML = formatCurrency(totalMonthly);
// Show Results container
document.getElementById('results').style.display = 'block';
}