Free Mortgage Calculator - Estimate Your Monthly Payment
How to Use This Mortgage Calculator
Estimating your total monthly housing cost takes only a few simple inputs. Follow these steps to calculate your payment:
- Home Price ($): Enter the total purchase price of the property you plan to buy.
- Down Payment ($ or %): Input the cash amount or percentage you plan to pay upfront. Standard down payments range from 3% to 20%.
- Loan Term: Select the fixed duration of the loan (e.g., 30 years or 15 years).
- Interest Rate (%): Enter the annual interest rate quoted by your mortgage lender.
- Taxes, Insurance & PMI (Optional): Input local annual property taxes, homeowner's insurance, and Private Mortgage Insurance (PMI) to see a complete monthly payment breakdown.
How Mortgage Payments Are Calculated
The principal and interest (P&I) portion of a fixed-rate mortgage is calculated using the standard amortization formula:
M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]
Formula Breakdown:
- M = Total monthly principal and interest payment
- P = Principal loan amount (Home Price − Down Payment)
- r = Monthly interest rate (Annual Rate ÷ 12 months)
- n = Total number of monthly payments (Loan Term Years × 12)
Understanding the 4 Components of a Mortgage (PITI)
Your total monthly check to your loan servicer often consists of four distinct costs, commonly referred to as PITI:
| Component | Description |
|---|---|
| Principal | The portion of your payment that goes directly toward paying off the original money borrowed. |
| Interest | The fee charged by the lender for borrowing the principal amount. |
| Property Taxes | Taxes assessed by local government authorities, collected monthly by your lender and held in escrow. |
| Homeowner's Insurance | Hazard insurance required by lenders to protect the home against damage, weather, or theft. |
| PMI (If Applicable) | Private Mortgage Insurance, usually required if your down payment is less than 20% of the home price. |
Mortgage Calculator
Estimate your monthly mortgage payment and total loan cost.
Loan Details
Payment Summary
Estimated Monthly Payment
$0.00
Principal & Interest
$0.00
Property Tax
$0.00
Home Insurance
$0.00
Monthly PMI
$0.00
Total Interest
$0.00
Total Loan Payments
$0.00
Yearly Amortization Schedule
| Year | Annual Payment | Principal Paid | Interest Paid | Remaining Balance |
|---|
