Mortgage Calculator
Calculate your monthly mortgage payments and amortization schedule
Planning to buy a home? Understanding your monthly mortgage payments is a critical step. This mortgage calculator helps you estimate your monthly costs based on key inputs like home price, down payment, loan term, interest rate, property tax, insurance, PMI, and HOA fees.
How It Works
The calculator takes your inputs and breaks down the financial picture clearly:
Loan Amount: This is the amount you’ll borrow after subtracting the down payment from the home price.
Monthly Mortgage Payment: Based on your loan amount, interest rate, and loan term, it calculates your principal and interest payment.
Additional Costs: Property tax, home insurance, private mortgage insurance (PMI), and HOA fees are factored into the total monthly payment.
PMI Calculation: If your down payment is less than 20%, the calculator includes PMI until that threshold is reached.
Amortization Details
Beyond the monthly summary, the calculator provides a year-by-year view of your loan balance through a visual chart. It also shows an amortization table with the first 12 months of payments, breaking each one into principal and interest amounts, and showing how your balance changes over time.
Who Should Use This Calculator?
Homebuyers: Understand what you can afford before applying for a mortgage.
Homeowners: Compare your current mortgage with refinancing options.
Investors: Evaluate property costs with all expenses included.
Why This Tool Stands Out
Unlike basic calculators, this tool provides a complete picture, including long-term costs and a detailed breakdown. It makes planning more accurate and gives you the clarity you need to make informed decisions.
Mortgage Payment Formula
Your monthly mortgage payment is calculated using the standard amortization formula:
M = P × [r(1+r)n] / [(1+r)n − 1]
- M – Monthly principal & interest payment
- P – Loan principal (home price minus down payment)
- r – Monthly interest rate (annual rate ÷ 12)
- n – Total number of payments (years × 12)
Property tax, homeowner’s insurance, PMI, and HOA fees are added on top of the principal & interest amount to give your full monthly housing cost.
Worked Examples
Example 1 – 30-year fixed
Home price $400,000, 20% down ($80,000), loan $320,000 at 6.5% for 30 years (360 payments). Monthly rate r = 0.065/12 = 0.005417. Payment M = 320,000 × [0.005417(1.005417)360] / [(1.005417)360 − 1] = $2,022.55/month principal & interest.
Example 2 – 15-year fixed
Same $320,000 loan at 6.0% for 15 years (180 payments). Monthly rate r = 0.06/12 = 0.005. Payment M = 320,000 × [0.005(1.005)180] / [(1.005)180 − 1] = $2,700.34/month. Total interest paid is far lower than the 30-year option.
Frequently Asked Questions
How much house can I afford?
A common rule is that your monthly housing cost should not exceed 28% of your gross monthly income. Enter different home prices in the calculator to find a payment that fits your budget.
What is PMI and when do I pay it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home price. It typically costs 0.5%–1% of the loan amount per year and is removed once you reach 20% equity.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but much lower total interest. A 30-year mortgage has lower payments but costs more over time. Use the calculator to compare both scenarios.
Does this include property tax and insurance?
Yes. Enter your annual property tax and homeowner’s insurance and the calculator adds the monthly portion to your payment for a complete picture.
Shahnawaz
Shahnawaz is the founder of DaProfitClub, a free online platform offering 100+ calculators and converters for finance, health, math, and everyday life. With a background in finance and mathematics, he designs accurate, easy-to-use tools.
Sources: Consumer Financial Protection Bureau (CFPB) mortgage guides; standard amortization mathematics. Last reviewed: September 2026.
Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Consult a licensed mortgage professional for guidance specific to your situation.