Mortgage Payment Calculator
Estimate your monthly payments, including taxes and insurance.
30 Years
20 Years
15 Years
10 Years
Estimated Monthly Payment
$0.00
Principal & Interest:
$0.00
Property Tax (Monthly):
$0.00
Home Insurance (Monthly):
$0.00
HOA Fees (Monthly):
$0.00
Loan Amount:
$0.00
Total Interest Paid (Over Term):
$0.00
How to Use This Mortgage Calculator
Purchasing a home is one of the biggest financial decisions you will make. Our Mortgage Payment Calculator is designed to give you a comprehensive view of your potential monthly housing costs. By inputting specific details about the loan and the property, you can calculate not just the mortgage principal and interest, but also the "hidden" costs like taxes, insurance, and HOA fees.
Understanding the Inputs
- Home Price: The total purchase price of the real estate property.
- Down Payment: The upfront cash you pay toward the home purchase. A larger down payment reduces your loan amount and monthly payments.
- Loan Term: The duration of the mortgage. A 30-year term usually has lower monthly payments but higher total interest costs compared to a 15-year term.
- Interest Rate: The annual cost of borrowing money, expressed as a percentage. This rate significantly impacts your monthly payment.
- Property Tax & Insurance: These are often bundled into your monthly payment via an escrow account. Our calculator breaks these down to show the true cost of ownership.
How Mortgage Payments Are Calculated
The core of your monthly payment is the "Principal and Interest" (P&I). This is calculated using the standard amortization formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
- M = Total monthly P&I payment
- P = Principal loan amount (Home Price – Down Payment)
- i = Monthly interest rate (Annual Rate / 12)
- n = Number of payments (Loan Term in Years × 12)
PITI: The Full Picture
Most borrowers focus on P&I, but lenders look at PITI: Principal, Interest, Taxes, and Insurance. If you are buying a condo or a property in a managed community, you must also factor in Homeowners Association (HOA) fees. While HOA fees are rarely paid to the lender, they are a mandatory monthly obligation that affects your debt-to-income ratio.
Strategies to Lower Your Monthly Payment
If the calculated payment is higher than your budget allows, consider the following strategies:
- Increase your down payment: Putting 20% down avoids Private Mortgage Insurance (PMI) and lowers the principal.
- Improve your credit score: Higher credit scores often qualify for lower interest rates.
- Shop for insurance: Homeowners insurance rates vary; shopping around can save you hundreds per year.
- Consider a longer term: While it costs more in interest over time, a 30-year loan has lower monthly payments than a 15-year loan.