Mortgage Calculator

Estimate your monthly mortgage payment including principal, interest, taxes, and insurance.

Mortgage Details

Home Price

The purchase price of the home

Down Payment

20.0% of home price

Interest Rate

Annual interest rate (APR)

Loan Term

years

Common terms: 15, 20, or 30 years

Additional Costs (Optional)

Property Tax Rate

% / year

Annual property tax as % of home value

Home Insurance Rate

% / year

Annual insurance as % of home value

What is a Mortgage Calculator?

A mortgage is a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to secure the loan.

Mortgage Formula & How to Calculate

The most common method to calculate a monthly mortgage payment is the standard amortization formula. However, a complete monthly payment (PITI) includes Principal, Interest, Taxes, and Insurance.

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

M = Total monthly payment
P = Principal loan amount
i = Monthly interest rate (Annual Rate / 12)
n = Number of months (Loan Term in Years × 12)

PITI breakdown:

Principal: The portion going towards the loan balance.
Interest: The cost of borrowing money.
Taxes: Property taxes assessed by your local government.
Insurance: Homeowners insurance to protect the property.

Example Calculation

Let's calculate the monthly payment for a $350,000 home with a 20% ($70,000) down payment, resulting in a loan amount of $280,000. The loan term is 30 years with an interest rate of 6.5%.

Loan Amount (P): $280,000

Monthly Rate (i): 6.5% / 12 = 0.005417

Number of Months (n): 30 × 12 = 360

Result: $1,769.79 (Principal & Interest only)

Note: This example excludes property taxes and insurance, which vary by location.

Frequently Asked Questions

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance. These are the four main components that make up a monthly mortgage payment.

How much down payment do I need?

Traditionally, 20% is recommended to avoid Private Mortgage Insurance (PMI), but many loans allow for as little as 3-3.5% down.

What is the difference between fixed and adjustable rates?

A fixed-rate mortgage has the same interest rate for the entire life of the loan. An adjustable-rate mortgage (ARM) has a rate that can change after an initial fixed period.

How does the loan term affect my payment?

A shorter term (e.g., 15 years) results in higher monthly payments but less total interest paid. A longer term (e.g., 30 years) lowers the monthly payment but increases the total interest.

Are property taxes included in the calculation?

Yes, this calculator allows you to input an annual property tax rate to estimate the tax portion of your monthly payment.

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