Mortgage Calculator
Estimate your monthly mortgage payment and see how much of it goes to interest. Enter your home price, down payment, rate, and term — everything updates instantly.
- Loan amount
- $320,000
- Total of payments (P&I)
- $728,142
- Total interest paid
- $408,142
- Property tax
- $367/mo
- Insurance
- $150/mo
Estimate only. Excludes PMI, which lenders typically require when your down payment is under 20%. Actual rates and escrow amounts vary by lender and location.
How your mortgage payment is calculated
A fixed-rate mortgage is a fully amortizing loan, which means each monthly payment is the same and is split between interest (the cost of borrowing) and principal (paying down what you owe). Early in the loan, most of the payment goes to interest; over time the balance tips toward principal. The standard formula for the monthly principal-and-interest payment is:
M = P · r · (1 + r)n / ((1 + r)n − 1)
where P is the loan amount (home price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Our calculator runs this for you and then adds property tax, homeowners insurance, and any HOA dues to estimate your full monthly housing cost — often called PITI (principal, interest, taxes, and insurance).
A worked example
Suppose you buy a $400,000 home with 20% down ($80,000), financing $320,000 at a 6.5% APR over 30 years. The principal-and-interest payment works out to about $2,022 per month. Add roughly $367 for property tax (at 1.1% annually) and $150 for insurance, and your estimated monthly payment is around $2,539. Over the full 30 years you would pay about $408,000 in interest alone — which is exactly why the rate and term matter so much.
How to lower your monthly payment
- Larger down payment: reduces the amount financed and can remove PMI at 20% down.
- Lower interest rate: shopping multiple lenders or buying points can shave the rate.
- Longer term: a 30-year term lowers the monthly payment but raises total interest versus a 15-year.
- Lower property tax area: taxes vary widely by state and county and are a real part of the payment.
What this calculator does not include
This is an estimate for planning. It does not include private mortgage insurance (PMI), which lenders usually require when your down payment is below 20%, nor closing costs, which typically run 2–5% of the loan amount. Your actual rate depends on your credit score, loan type, and current market conditions.
Frequently asked questions
What is included in a monthly mortgage payment?+
A typical monthly payment includes principal and interest on the loan, plus escrowed property taxes and homeowners insurance. Together these are called PITI. If you put down less than 20%, lenders usually add private mortgage insurance (PMI), and a homeowners association may add monthly HOA dues.
How much income do I need to afford this payment?+
A common guideline is the 28/36 rule: aim to keep housing costs under about 28% of your gross monthly income and total debt under 36%. So a $2,500 monthly payment roughly suggests a gross income of around $8,900 per month, or about $107,000 per year, though lenders also weigh your other debts and down payment.
Should I choose a 15-year or 30-year mortgage?+
A 30-year loan has lower monthly payments but you pay far more interest over time. A 15-year loan has higher payments but a lower rate and dramatically less total interest. Use the term field above to compare the two for your numbers.
Does this calculator store my information?+
No. Every calculation runs entirely in your browser. The numbers you enter are never sent to a server or saved.