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Mortgage Calculator

Use this free Mortgage Calculator to estimate monthly home loan payments with taxes and insurance. Simple, accurate, and easy to use online.

A mortgage is likely the biggest debt you will ever take on, and the Mortgage Calculator is designed to make that commitment transparent. It calculates your monthly payment based on the loan amount, interest rate, and term, while also estimating the impact of property taxes and insurance.

Navigating the mortgage market can be overwhelming. Lenders quote different rates, points, and terms. This tool allows you to standardize those offers and see exactly what each one costs you on a monthly basis and over the life of the loan.

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When to Use This Calculator

Use the Mortgage Calculator when:

  • House Hunting: "Can I afford that $400,000 house on my $80,000 salary?"
  • Comparing Offers: "Is a 15-year loan at 4% better than a 30-year loan at 5%?"

Example Scenario

You want to buy a home for $300,000. You have a 20% down payment ($60,000). The loan amount is $240,000.

At a 6.5% interest rate over 30 years:

  • Principal & Interest: ~$1,517/month
  • Property Tax (est. 1.2%): ~$300/month
  • Home Insurance (est.): ~$100/month

Your total monthly payment is roughly $1,917. Over 30 years, you will pay approximately $306,000 in interest alone—more than the original loan amount!

Formula & Calculation Method

Formula Used

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

Variable Explanation

  • M: Total Monthly Mortgage Payment
  • P: Principal Loan Amount
  • i: Monthly Interest Rate
  • n: Number of Payments (Months)

Step-by-Step Calculation

  1. 1. Subtract Down Payment from Home Price to find the Principal Loan Amount.
  2. 2. Convert annual rate to monthly interest rate.
  3. 3. Use the standard mortgage amortization formula.
  4. 4. The result is the principal and interest payment (taxes and insurance not included).

Interpretation Notes

This formula strictly calculates Principal and Interest. Property taxes, homeowners insurance, and PMI are extra costs typically added to this monthly figure.

How to Interpret the Results

P&I vs. PITI: Most calculators show "Principal & Interest" (P&I). However, your lender collects "PITI" (Principal, Interest, Taxes, Insurance). Always budget for the PITI number.

Common Mistakes

Forgetting PMI: If you put down less than 20%, you will likely pay Private Mortgage Insurance (PMI), which can add $100-$300 to your monthly bill.

Ignoring Maintenance: The mortgage payment is the minimum you will pay each month. Repairs and maintenance are extra.