How is my monthly mortgage payment calculated?

Your monthly payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n−1], where P is the principal, r is the monthly interest rate, and n is the number of payments.

Does this calculator include property taxes and insurance?

Yes. You can optionally enter monthly property tax, homeowner's insurance, and HOA fees to see your total monthly housing cost (PITI).

What is a good mortgage interest rate?

Mortgage rates change daily and vary by loan type, term, credit score, and down payment. Check current rates with multiple lenders and use this calculator to compare scenarios.

What is amortization?

Amortization is the process of paying off a loan through regular fixed payments. Early payments are mostly interest; later payments are mostly principal.

Mortgage Calculator

Calculate your monthly mortgage payment, total interest paid, and total loan cost. Includes optional property tax, insurance, and HOA fees.

Home Price

Down Payment (20.0%)

Annual Interest Rate

Loan Term

Monthly Payment (P&I)

$1,769.79

Monthly Payment Breakdown

Principal & Interest: $1,769.79

Loan Summary

Home Price: $350,000.00
Down Payment (20.0%): $70,000.00
Loan Amount: $280,000.00
Total Interest (30 years): $357,124.57
Total Loan Cost: $637,124.57

Principal vs. Interest

Principal $280,000.00Interest $357,124.57

Disclaimer: This calculator provides estimates for informational purposes only. Actual mortgage terms, rates, and payments will vary based on your lender, credit score, and loan type. Consult a licensed mortgage professional before making financial decisions.

Mortgage Payment Formula

M = P × [r(1+r)^n] / [(1+r)^n − 1]. P = principal loan amount. r = monthly interest rate (annual rate ÷ 12). n = total number of monthly payments (years × 12).

How to Lower Your Mortgage Payment

Make a larger down payment to reduce principal. Improve your credit score before applying. Choose a longer loan term (30 vs. 15 years). Shop multiple lenders for the best rate. Buy mortgage points to lower your rate.

15-Year vs. 30-Year Mortgage

A 15-year mortgage typically has a lower interest rate and you pay far less total interest. A 30-year mortgage has lower monthly payments, making it more affordable on a tight budget. Use this calculator to compare both scenarios with your numbers.

Frequently Asked Questions

: Your monthly payment is calculated using the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n−1], where P is the principal, r is the monthly interest rate, and n is the number of payments.
: Yes. You can optionally enter monthly property tax, homeowner's insurance, and HOA fees to see your total monthly housing cost (PITI).
: Mortgage rates change daily and vary by loan type, term, credit score, and down payment. Check current rates with multiple lenders and use this calculator to compare scenarios.
: Amortization is the process of paying off a loan through regular fixed payments. Early payments are mostly interest; later payments are mostly principal.

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