Mortgage Calculator
Estimate your monthly mortgage payments
Monthly payment breakdown
Get Custom QuoteHOA fees make up the largest portion of your monthly payment.
You can adjust the inputs to see how it impacts your payment.
Payment insights
What this payment includes
Your payment covers your loan, taxes, insurance, and other homeownership costs.
How it's calculated
Based on your loan details and estimated property costs in your area.
Keep in mind
Actual payments may vary based on your final loan terms and property details.
Disclaimer: This calculator is for educational purposes only and is not a loan offer or commitment to lend. Estimated payments may include principal, interest, taxes, insurance, mortgage insurance, and HOA dues. Actual rates and payments depend on your application, credit review, and property details.
This free home loan calculator lets you calculate mortgage payment estimates in seconds, factoring in your loan amount, interest rate, loan term, property taxes, and homeowners' insurance. Whether you're a first-time buyer trying to figure out a realistic budget or a current homeowner comparing refinance options, this mortgage payment calculator gives you the numbers you need, instantly and without obligation.
How to Use This Mortgage Calculator
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Enter the home price :Type in the purchase price of the home you're considering, or the property's current value if you're estimating a refinance.
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Enter your down payment :Add this as a dollar amount or a percentage. A larger down payment lowers your loan amount and may help you avoid PMI.
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Choose your loan term :Select 15, 20, or 30 years to see how the length of your loan affects your monthly payment and total interest.
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Input your interest rate :Use a rate you've been quoted, or a current market estimate if you're still shopping for a loan.
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Add property taxes and homeowners' insurance :If you're not sure of the exact amount, the calculator can estimate this based on your home's location and price.
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Include PMI or HOA dues, if applicable :These fields only matter if your down payment is under 20% or your property carries association fees.
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Review your results :The calculator instantly shows your estimated monthly payment, broken down by principal, interest, taxes, and insurance, along with an amortization schedule showing how your balance decreases over time.
Adjust any field and the calculator recalculates instantly, so you can test multiple scenarios, compare loan terms, or see how a bigger down payment changes your numbers, all before you ever speak with a lender.
What's Included in Your Monthly Mortgage Payment
Many first-time buyers are surprised that their mortgage payment includes more than just paying back the loan. Lenders commonly refer to this as PITI:
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Principal :the portion of your payment that reduces your loan balance
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Interest :the cost of borrowing, paid to your lender
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Taxes :your share of annual property taxes, collected monthly and held in escrow
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Insurance :homeowners' insurance, plus PMI or mortgage insurance premium (MIP) if required
Depending on your loan and property, your payment may also include:
HOA fees, if your home is part of a homeowner's association
Flood insurance, if your property sits in a flood zone
How to Calculate Your Mortgage Payment
If you want to understand how to calculate mortgage payments manually, the formula lenders use is:
M = P [ r(1+r)^n ] / [ (1+r)^n – 1 ]Where:
M = your monthly payment
P = the principal loan amount (home price minus down payment)
r = your monthly interest rate (annual rate divided by 12)
n = the total number of payments (loan term in years × 12)
This formula calculates the fixed monthly payment that fully pays off your loan, including interest, over the loan term. For example, on a $350,000 loan at a 6% interest rate over 30 years, the formula produces a principal-and-interest payment of roughly $2,100 a month. Add in property taxes, insurance, and any PMI, and your total monthly payment will be higher.
How Mortgage Interest Is Calculated
Mortgage interest is calculated on your remaining loan balance, not on the original loan amount. Each month, your lender multiplies your current balance by your monthly interest rate to determine that month's interest charge. The rest of your payment goes toward principal.
This process is called amortization. In the early years of your loan, most of your payment goes toward interest because your balance is still high. As you pay down principal over time, more of each payment shifts toward reducing your loan balance, and less goes to interest.
This is why running the numbers through a mortgage interest calculator early on is so valuable. It shows you exactly how much of your payment builds equity versus how much covers borrowing costs, and how that ratio changes year by year.
A few things that directly affect how much interest you'll pay over the life of your loan:
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Your interest rate :even a small rate difference adds up significantly over 30 years
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Your loan term :shorter terms mean less total interest, but higher monthly payments
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Extra payments toward principal :these reduce the balance interest is calculated on, saving you money over time
What Affects Your Mortgage Payment
Several factors influence the estimate this calculator gives you, and understanding them helps you see where you have room to improve your numbers:
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Credit score : higher scores typically unlock lower interest rates
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Down payment :a larger down payment lowers your loan amount and may eliminate PMI
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Loan term :15-year loans build equity faster with less total interest; 30-year loans offer lower monthly payments
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Loan type :conventional, FHA, VA, USDA, jumbo, and non-QM loans all carry different rate structures, down payment minimums, and insurance requirements
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Property location :property tax rates and insurance costs vary significantly by state and county
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Debt-to-income ratio :lenders factor in your existing debt when determining what you qualify for
Understanding Mortgage Points
Mortgage points, also called discount points, let you pay an upfront fee in exchange for a lower interest rate. One-point equals 1% of your loan amount.
How to calculate points on a mortgage:
Multiply your loan amount by 1% for each point. For example, one point on a $400,000 loan costs $4,000.
Each point typically lowers your interest rate by approximately 0.25%, though this varies by lender and market conditions.
Calculate your breakeven point by dividing the upfront cost of the points by your monthly savings. If paying $4,000 saves you $60 a month, your breakeven is roughly 67 months, or about 5.5 years.
Buying points generally makes sense if you plan to stay in the home or keep the loan longer than your breakeven period. If you expect to sell or refinance your mortgage sooner, paying points usually isn't worth it. Run both scenarios through the mortgage calculator to see the real dollar difference over time.
Why Use a Mortgage Calculator Before You Apply
Running your numbers through a mortgage calculator before you start shopping for homes, or before you apply for a home loan, gives you a real advantage. You'll know your realistic price range, understand how your down payment and credit score affect your offer, and walk into conversations with lenders prepared instead of guessing.
It's also a useful tool throughout the homebuying process: compare loan offers side by side, test different down payment amounts, or see how refinancing later could change your payment. When you're ready to move from estimating to applying, getting pre-approved is the natural next step. A pre-approval shows sellers you're a serious, qualified buyer and gives you a clearer picture of your real borrowing power.
FAQ (Frequently Asked Questions)
How do you calculate mortgage payments?
Mortgage payments are calculated using your loan amount, interest rate, and loan term, plugged into an amortization formula that spreads principal and interest evenly across every payment. In simple terms, the calculator figures out the fixed payment amount that will pay off your loan balance, plus all accrued interest, by the end of your term. Add estimated property taxes, homeowners' insurance, and PMI, if applicable, to get your full monthly payment.
How is mortgage interest calculated?
Mortgage interest is calculated each month by multiplying your current loan balance by your monthly interest rate, your annual rate divided by 12. Because interest is based on your remaining balance, you pay more interest early in the loan when your balance is highest, and less interest later as your balance shrinks. This is why early payments are interest-heavy and later payments are principal-heavy.
What is included in a mortgage payment?
A typical mortgage payment includes principal, interest, property taxes, and homeowners' insurance, often referred to as PITI. If your down payment is below 20%, your payment will likely also include private mortgage insurance (PMI) or mortgage insurance premium (MIP). HOA dues, if applicable, are sometimes billed separately but still count toward your total monthly housing cost.
How do you calculate the mortgage interest deduction?
To estimate your mortgage interest deduction, start with the total interest reported on your Form 1098 from your lender. If you itemize deductions, that interest is generally deductible up to current IRS debt limits, $750,000 for most loans under current law. Your actual deduction depends on your loan balance, origination date, and whether you itemize versus take the standard deduction, so it's best confirmed with a tax professional.
How do you calculate points on a mortgage?
One mortgage point costs 1% of your loan amount and typically lowers your interest rate by about 0.25%. To find your breakeven period, divide the upfront cost of the points by your estimated monthly savings. If the math shows you'll keep the loan past the breakeven point, buying points can save you money over the life of the loan.
