Private Mortgage Insurance (if applicable, typically for down payments < 20%)
Your Estimated Monthly Payment (Principal, Interest, Taxes, Insurance, PMI)
$0.00
Understanding Your Mortgage Payment with Escrow
A mortgage payment is often more than just the principal and interest on your loan. For many homeowners, especially those with conventional loans and a down payment less than 20%, the monthly payment includes an escrow component to cover property taxes and homeowner's insurance. Private Mortgage Insurance (PMI) may also be factored in if your down payment is insufficient.
The Components of Your Monthly Mortgage Payment
Your total monthly mortgage payment is typically broken down into several parts:
Principal: The amount that goes towards paying down the actual loan balance.
Interest: The cost of borrowing the money, calculated on the outstanding loan balance.
Property Taxes: Your local government's taxes on your property. Lenders collect this monthly and pay your tax bill annually on your behalf through an escrow account.
Homeowner's Insurance: Covers damages to your home from events like fire, theft, or natural disasters. Lenders require this to protect their investment and collect it monthly via escrow to pay your annual premium.
Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home's purchase price, lenders usually require PMI to protect them against potential default. This cost is also often included in the monthly payment.
How the Calculator Works
This calculator estimates your total monthly mortgage payment by calculating each component:
Loan Amount: The home price minus your down payment.
Loan Amount = Home Price - (Home Price * Down Payment Percentage / 100)
Principal & Interest (P&I): This is calculated using the standard mortgage payment formula (also known as the amortization formula):
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] Where:
M = Your total monthly mortgage payment (Principal & Interest)
P = The principal loan amount
i = Your monthly interest rate (Annual Interest Rate / 12 / 100)
n = The total number of payments over the loan's lifetime (Loan Term in Years * 12)
Monthly Taxes: Your annual property taxes divided by 12.
Monthly Taxes = Annual Property Taxes / 12
Monthly Insurance: Your annual homeowner's insurance premium divided by 12.
Monthly Insurance = Annual Homeowner's Insurance / 12
Monthly PMI: If the down payment is less than 20%, this is calculated as your annual PMI rate applied to the loan amount, divided by 12.
Monthly PMI = (Loan Amount * Annual PMI Rate / 100) / 12
The total estimated monthly payment is the sum of P&I, Monthly Taxes, Monthly Insurance, and Monthly PMI (if applicable).
Why Use This Calculator?
This tool helps potential homebuyers and existing homeowners:
Estimate the full monthly cost of homeownership.
Compare different loan scenarios and down payment amounts.
Budget more effectively for mortgage-related expenses.
Understand the impact of taxes, insurance, and PMI on their overall payment.
Disclaimer: This calculator provides an estimate only. Actual mortgage payments may vary based on lender fees, specific insurance policies, tax assessments, and other factors. It is recommended to consult with a mortgage professional for precise figures.
function calculateMortgage() {
var homePrice = parseFloat(document.getElementById("homePrice").value);
var downPaymentPercent = parseFloat(document.getElementById("downPayment").value);
var loanTermYears = parseInt(document.getElementById("loanTerm").value);
var annualInterestRate = parseFloat(document.getElementById("interestRate").value);
var annualTaxes = parseFloat(document.getElementById("annualTaxes").value);
var annualInsurance = parseFloat(document.getElementById("annualInsurance").value);
var pmiRate = parseFloat(document.getElementById("pmiRate").value);
var resultElement = document.getElementById("monthlyPayment");
resultElement.textContent = "$0.00"; // Reset to default
// Input validation
if (isNaN(homePrice) || homePrice <= 0) {
alert("Please enter a valid Home Price.");
return;
}
if (isNaN(downPaymentPercent) || downPaymentPercent 100) {
alert("Please enter a valid Down Payment percentage (0-100%).");
return;
}
if (isNaN(loanTermYears) || loanTermYears <= 0) {
alert("Please enter a valid Loan Term in years.");
return;
}
if (isNaN(annualInterestRate) || annualInterestRate < 0) {
alert("Please enter a valid Annual Interest Rate.");
return;
}
if (isNaN(annualTaxes) || annualTaxes < 0) {
alert("Please enter a valid amount for Annual Property Taxes.");
return;
}
if (isNaN(annualInsurance) || annualInsurance < 0) {
alert("Please enter a valid amount for Annual Homeowner's Insurance.");
return;
}
if (isNaN(pmiRate) || pmiRate 0) {
principalAndInterest = loanAmount * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else { // Handle 0% interest rate case
principalAndInterest = loanAmount / numberOfPayments;
}
var monthlyTaxes = annualTaxes / 12;
var monthlyInsurance = annualInsurance / 12;
var monthlyPMI = 0;
// PMI is typically required if down payment is less than 20%
if (downPaymentPercent < 20) {
monthlyPMI = (loanAmount * (pmiRate / 100)) / 12;
}
var totalMonthlyPayment = principalAndInterest + monthlyTaxes + monthlyInsurance + monthlyPMI;
// Display result
resultElement.textContent = "$" + totalMonthlyPayment.toFixed(2);
}