Plan your mortgage with our comprehensive calculator. Enter your loan details below to calculate your monthly payments and view a complete amortization schedule.

Get insights into your total interest costs, payment breakdown, and see how additional costs like property taxes and insurance affect your monthly payments.

All calculations are performed instantly and can be adjusted at any time to explore different scenarios.

Mortgage Calculator

Mortgage Calculator

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Enter the total value/price of the home you want to purchase.
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Enter the amount you plan to pay upfront for the home.
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Enter the annual interest rate for your mortgage loan.
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Enter the length of your mortgage loan in years (typically 15 or 30).
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Select the date when your mortgage payments will begin.
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Choose whether to include additional costs like property taxes and insurance in the calculation.

Annual Tax & Cost

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Enter your annual property tax rate as a percentage of the home value.
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Enter your annual home insurance premium.
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Enter annual Private Mortgage Insurance cost (required if down payment is less than 20%).
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Enter monthly Homeowners Association fees if applicable.
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Enter any additional annual costs associated with the property.

Simple Guide to Mortgage Terms

  • Home Value – The total purchase price or current market value of the property you want to buy.
  • Down Payment – The initial payment you make when purchasing a home. A larger down payment typically means lower monthly payments and might help you avoid PMI insurance.
  • Interest Rate – The annual rate your lender charges for borrowing the money. A lower interest rate means lower monthly payments.
  • Loan Term – The length of time you have to repay the loan, typically 15 or 30 years. A shorter term means higher monthly payments but less total interest paid.
  • Property Taxes – Annual taxes charged by your local government based on your home’s value. Usually calculated as a percentage of your home’s value.
  • Home Insurance – Annual insurance premium that protects your home against damage or loss. Required by most lenders.
  • PMI (Private Mortgage Insurance) – Insurance required if your down payment is less than 20% of the home value. Protects the lender if you default on the loan.
  • HOA (Homeowners Association) Fee – Monthly fees some communities charge for maintenance of common areas and shared amenities.

Understanding Your Results:

  • Mortgage Payment: Your monthly principal and interest payment
  • Total Out-of-Pocket: Your complete monthly payment including all additional costs
  • Total Interest: The total amount you’ll pay in interest over the life of the loan
  • Amortization Schedule: A year-by-year breakdown showing how your payments are split between principal and interest, and how your loan balance decreases over time

The amortization schedule shows that in the early years of your mortgage, a larger portion of your payment goes toward interest. As time passes, more of your payment goes toward paying down the principal balance.

How to Calculate Your Mortgage Payment

Understanding the math behind mortgage payments can help you make better financial decisions. While online calculators are convenient, knowing the underlying formula provides valuable insights into how different factors affect your monthly payment.

The monthly mortgage payment is calculated using the following formula:

\(M = P\frac{r(1+r)^n}{(1+r)^n-1}\)

Where:

  • M = Monthly payment
  • P = Principal (loan amount)
  • r = Monthly interest rate (annual rate divided by 12)
  • n = Total number of payments (years × 12)

Example: For a $400,000 loan with a 6% annual interest rate and a 30-year term:

  • P = $400,000
  • r = 0.06 ÷ 12 = 0.005
  • n = 30 × 12 = 360

\(M = 400,000\frac{0.005(1+0.005)^{360}}{(1+0.005)^{360}-1}\)

This equals a monthly payment of $2,398.20 (principal and interest only).


Additional Costs:

  • Property taxes and insurance are typically added to this base payment
  • Monthly PMI (if required) would also be added
  • Any HOA fees would be additional

This calculation shows your base monthly mortgage payment. Your actual payment may be higher if you include taxes, insurance, and other fees in your monthly payment through an escrow account.

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