Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance & PMI
What is a Mortgage Calculator?
A mortgage calculator is a financial tool that helps you estimate your monthly mortgage payment based on home price, down payment, interest rate, and loan term. It also factors in property taxes, homeowners insurance, and Private Mortgage Insurance (PMI) to give you a complete picture of your total monthly housing expense.
How to Use the Mortgage Payment Calculator
- Enter Home Price: Input the total purchase price of the property.
- Enter Down Payment: Specify your down payment amount.
- Set Interest Rate: Enter the annual rate offered by your lender.
- Choose Loan Term: Select 30, 20, 15, or 10 years.
- Click Calculate: See your estimated monthly payment and cost breakdown.
Understanding PITI: Your Payment Breakdown
Your total monthly mortgage payment consists of Principal, Interest, Taxes, and Insurance (PITI), plus PMI if your down payment is below 20%.
Mortgage Calculator Formula
Where M = monthly payment, P = loan principal, r = monthly interest rate, n = number of payments.
Sample Calculation
| Parameter | Value |
|---|---|
| Home Price | $300,000 |
| Down Payment (20%) | $60,000 |
| Loan Amount | $240,000 |
| Interest Rate | 6.5% |
| Monthly P&I | $1,516.96 |
| Total Monthly | $1,866.96 |
| Total Interest (30yr) | $306,106 |
Key Factors Affecting Your Mortgage
Interest Rate
A 1% difference on a $240K loan changes monthly payments by ~$160 and adds $57K+ in interest over 30 years.
Down Payment
Larger down payments reduce loans, lower payments, and may eliminate PMI. FHA: 3.5%, VA: 0%, Conventional: 3-20%.
Loan Term
15-year terms save ~$170K in interest vs 30-year on a $240K loan, but require higher monthly payments.
30-Year vs 15-Year Comparison
| Feature | 30-Year | 15-Year |
|---|---|---|
| Monthly P&I ($240K, 6.5%) | $1,517 | $2,091 |
| Total Interest | $306,106 | $136,339 |
| Interest Savings | — | $169,767 |
Frequently Asked Questions
How much mortgage can I afford?
Lenders use the 28/36 rule: housing ≤28% of income, total debt ≤36%.
What is the difference between interest rate and APR?
APR includes lender fees and points plus the base interest rate. Always compare APRs.
How does PMI work and when can I cancel?
PMI (0.5%-1.5% annually) is required when down payment <20%. Cancel at 80% LTV; auto-terminates at 78%.
30-year vs 15-year: which is better?
30-year: lower payments, more flexibility. 15-year: faster equity, huge interest savings.
Summary
A mortgage is likely your largest financial commitment. Our Mortgage Calculator gives you a clear estimate of your total monthly housing cost so you can budget confidently and make informed decisions.