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Calculator Answers

Mortgage Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

A mortgage calculator is a financial assessment tool that estimates the monthly payment required to pay off a home loan. It uses the standard amortization formula, incorporating the principal loan amount, annual interest rate, and loan term in years. Most modern mortgage calculators also account for estimated property taxes, home insurance, and private mortgage insurance (PMI) to provide a complete picture of homeownership costs.

Enter the home price, your down payment, the interest rate and loan term, plus property tax, insurance, PMI, and HOA dues. The calculator estimates your monthly principal and interest, the full housing payment, and total interest over the loan.

See also: Reverse Mortgage Calculator, Mortgage Refinance Calculator, and Mortgage Recast Calculator.

Quick Answer

Estimate your monthly home loan payment including principal, interest, taxes, and insurance. Enter the home price, down payment, interest rate, and loan term to see a detailed breakdown.

$

e.g. 350,000

$

Cash you put toward the purchase up front. · e.g. 70,000

yr

e.g. 30

%

e.g. 7

Taxes, insurance, and dues

$

e.g. 4,200

$

e.g. 1,800

$

Usually applies when down payment is under 20%. · e.g. 0

$

e.g. 0

Estimated monthly housing payment

Total monthly payment

$2,362.85

Loan amount $280,000.00 over 360 months

Principal and interest$1,862.85
Property tax$350.00
Home insurance$150.00
PMI$0.00
HOA$0.00
Loan amount$280,000.00
Total P&I over loan$670,624.92
Total interest$390,624.92
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Examples

$350k home, 20% down, 30 yr at 7%

P&I ≈ $1,862.85/mo · total ≈ $2,362.85/mo

Same loan at 6% interest

P&I ≈ $1,678.74/mo · saves $184/mo vs 7%

$450k home, 10% down, 30 yr at 7%, $250 PMI

P&I ≈ $2,694.48/mo · with PMI ≈ $2,944.48/mo

How it works

The principal and interest portion is computed with the standard amortized loan formula. The full housing payment then adds monthly property tax, homeowners insurance, PMI, and HOA dues on top.

Monthly principal and interest

M = P × r × (1 + r)^n / ((1 + r)^n − 1)

The parts

  • M = monthly principal and interest payment
  • P = loan amount (home price − down payment)
  • r = monthly interest rate (rate ÷ 12 ÷ 100)
  • n = number of monthly payments

Full housing payment

total = M + tax/mo + insurance/mo + PMI + HOA

At 0% interest

M = P / n

What is a mortgage calculator?

A mortgage calculator estimates the monthly cost of owning a home given a few inputs: the home price, your down payment, the loan term, the interest rate, and recurring costs like property tax, homeowners insurance, PMI, and HOA dues. It gives you a clear picture of the full monthly payment, not just the loan piece.

How the mortgage calculator works

The loan amount is the home price minus the down payment. From there the calculator computes:

  • The monthly principal and interest using the amortization formula.
  • Monthly property tax (annual tax ÷ 12).
  • Monthly homeowners insurance (annual premium ÷ 12).
  • PMI per month if you entered a value.
  • HOA dues per month if you entered a value.
  • The full monthly housing payment, total of all principal and interest payments over the loan, and total interest paid.

Principal and interest

Each scheduled payment is split between principal (the part that pays down the balance) and interest (the part that pays the lender). On a fixed-rate mortgage, the total principal and interest payment stays the same every month, but the split changes: more interest at the start of the loan, more principal as the balance shrinks.

Property taxes and home insurance

Property tax and homeowners insurance are recurring costs of owning a home, separate from the loan itself. Many lenders collect these as part of your monthly payment and hold them in an escrow account, then pay the bills when they come due. Enter the annual amounts and the calculator splits them into monthly figures.

PMI and HOA dues

PMI typically applies when your down payment is under 20% on a conventional mortgage. It is usually billed monthly and can often be removed once you have at least 20% equity. HOA dues are paid to a homeowners association if your property is in one. Both are entered here as monthly amounts and added directly to the total housing payment.

Down payment and loan amount

The down payment reduces the loan amount, which reduces both the monthly principal and interest payment and the total interest paid over the loan. A larger down payment can also eliminate the need for PMI and may qualify you for a better interest rate, which compounds the savings.

To compare two rate scenarios in percentage terms, the percentage increase calculator can help.

Worked example

Home price $350,000, down payment $70,000, loan amount $280,000, interest rate 7%, term 30 years, property tax $4,200 per year, home insurance $1,800 per year, no PMI, no HOA.

  • Principal and interest ≈ $1,862.85 per month
  • Property tax per month = 4,200 ÷ 12 = $350.00
  • Insurance per month = 1,800 ÷ 12 = $150.00
  • PMI = $0.00
  • HOA = $0.00
  • Total monthly payment ≈ $2,362.85
  • Total of principal and interest payments ≈ $670,624.92
  • Total interest ≈ $390,624.92

Common mistakes

  • Confusing principal and interest with the full housing payment. The full payment usually also includes tax, insurance, PMI, and HOA.
  • Forgetting PMI when the down payment is under 20%. Even a small monthly PMI adds up over years.
  • Using a 15-year payment to budget a 30-year loan, or vice versa. The two payments are very different even at the same rate.
  • Confusing rate with APR. APR includes some financing fees; the rate used in the formula here is the note rate.
  • Ignoring closing costs. These are not in the monthly payment but are a real cost of buying.

Mortgage and Home Buying Calculators

Buying a home involves more than just the monthly mortgage payment. Use the calculators below to plan every step, from how much house you can afford, to your down payment savings, to refinancing or recasting an existing mortgage.

Mortgage Calculators

Home Buying Calculators

Renting Calculators

Still renting? Use these calculators for lease and rental decisions.

Related tools

Disclaimer. This calculator is an estimate for general educational use. Actual mortgage payments, rates, taxes, insurance, PMI, HOA dues, closing costs, escrow rules, and loan terms can vary by lender, property, location, credit profile, and purchase details. It is not a mortgage offer or approval and is not financial advice.

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Frequently asked questions

Yes. PITI stands for principal, interest, taxes and insurance, and the total monthly figure this page reports is exactly that sum. The principal and interest come from the loan amount, rate and term; the taxes and insurance are the annual figures you enter divided by twelve. PMI and HOA dues are added on top when you enter them, which is strictly speaking more than PITI, so the breakdown lists every part separately.

The principal and interest portion is calculated with the standard amortized loan formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1). P is the loan amount, r is the monthly interest rate (rate ÷ 12 ÷ 100), and n is the number of monthly payments. A full monthly mortgage payment also adds monthly property tax, homeowners insurance, PMI when it applies, and HOA dues if any.

A typical monthly housing payment includes principal and interest on the loan, monthly property tax (often held in escrow), monthly homeowners insurance (often held in escrow), private mortgage insurance (PMI) if your down payment is under 20%, and HOA dues if your property is in an association. This calculator sums all of those into the estimated total.

Principal is the part of each payment that reduces the loan balance. Interest is the part that pays the lender for lending the money. Early in the loan most of the payment goes to interest. As the balance shrinks, more of each payment goes to principal. The principal and interest portion is fixed for a fixed-rate mortgage.

A larger down payment reduces the loan amount, which directly reduces the principal and interest portion of the payment and lowers the total interest you pay over the life of the loan. A down payment of 20% or more typically also avoids private mortgage insurance (PMI).

A higher rate raises both the monthly principal and interest payment and the total interest paid over the term. Even a small change in rate has a big effect on a long mortgage. A 30-year mortgage compounds interest over 360 months, so a rate move from 6% to 7% can add tens of thousands of dollars in total interest.

Property taxes are paid to your local government, usually as a percentage of assessed home value, and vary widely by state and county. Homeowners insurance protects your property against covered damage. Lenders often collect both monthly through an escrow account and pay them on your behalf when the bills come due.

PMI (private mortgage insurance) is an insurance premium that lenders typically require when the down payment is under 20% on a conventional mortgage. It protects the lender, not you. PMI is usually billed monthly and can often be removed once you reach 20% equity in the home. Government-backed loans (FHA, VA, USDA) handle mortgage insurance differently.

No. This calculator estimates the monthly payment on a specific scenario you enter. A home affordability calculator works backward from your income, debts, and target payment ratios to suggest how much home you might be able to buy. For affordability, also factor in closing costs, maintenance, and your local cost of living.