Mortgage Calculator
Estimate your monthly mortgage payment, total interest paid, and full amortization schedule. Optionally include property tax, homeowner's insurance, and PMI.
Show amortization (yearly)
| Year | Principal paid | Interest paid | Balance |
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How to use this mortgage calculator
Enter the home price, your planned down payment, the interest rate quoted by your lender, and your loan term. The calculator returns your estimated monthly payment broken down into principal & interest (P&I), property tax, homeowner's insurance, and private mortgage insurance (PMI). Together, these four numbers form the PITI figure that lenders use when deciding what you can afford.
The mortgage payment formula
The principal-and-interest portion of your monthly payment is calculated with the standard amortization formula:
M = P × (r(1+r)n) / ((1+r)n − 1)
Where P is the loan principal (price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments (years × 12). Property tax and insurance are added on top, and PMI is included while your loan-to-value ratio is above 80%.
Tips for getting an accurate estimate
- Use today's rates. Mortgage rates move daily. Check a reliable rate aggregator the day you run the numbers.
- Look up your local tax rate. Property tax varies wildly by county. Multiply the home price by your local effective tax rate (often 0.5%–2.5%).
- Don't forget closing costs. Closing costs typically add another 2%–5% to the cash you'll need on day one — this calculator covers the recurring monthly cost only.
- Test "what-if" scenarios. Try shorter terms, larger down payments, or rate-buy-down scenarios to see what shaves the most off your total interest.
Frequently asked questions
How is the monthly mortgage payment calculated?
Use the formula M = P × (r(1+r)n) / ((1+r)n − 1), where P is the loan principal, r is the monthly interest rate, and n is the number of monthly payments. The calculator above does this for you and adds tax, insurance, and PMI on top.
What does PITI mean?
PITI stands for Principal, Interest, Taxes, and Insurance — the four main pieces of a typical monthly mortgage payment.
When is PMI required, and when does it go away?
On most conventional loans, PMI is required while your down payment (or remaining equity) is below 20% of the home's value. Once your loan-to-value ratio reaches 80%, you can usually request PMI removal, and lenders are required to drop it automatically at 78%.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan has a higher monthly payment but a much lower interest rate and dramatically less total interest paid. A 30-year loan offers a lower monthly payment but you'll pay roughly 2× to 3× more in interest over the life of the loan. Run both through the calculator to compare.
Does this include closing costs?
No — this calculator estimates only the recurring monthly cost. Closing costs are a one-time expense at the start of the loan, typically 2%–5% of the loan amount.
This calculator is provided for educational purposes only and is not financial advice. For an exact quote, consult a licensed mortgage lender.