Mortgage Calculator - Calculate Monthly Payments

Free mortgage calculator to determine monthly payments including principal, interest, taxes, and insurance for home loans and property purchases

Updated: December 2024 • Free Tool

Mortgage Calculator

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Results

Monthly Payment
$1,566
Principal & Interest $1,216
Property Tax $250
Home Insurance $100
Total Payment $563,776
Total Interest $197,776

What is a Mortgage Calculator?

A mortgage calculator is a free financial tool that helps you calculate your complete monthly mortgage payment including principal, interest, taxes, and insurance (PITI).

Before calculating your monthly mortgage payment, it's essential to determine your home buying budget. Use our home affordability calculator to find out how much house you can afford based on your income, debts, and down payment.

This calculator helps with:

  • Home purchases - Calculate monthly payments for property buying
  • Refinancing - Compare new mortgage terms with current payments
  • Budget planning - Determine affordable home price ranges
  • Loan comparison - Compare different mortgage offers
  • Investment analysis - Evaluate rental property cash flow

Mortgage Payment Components (PITI)

Your monthly mortgage payment includes four main components (PITI): Principal, Interest, Taxes, and Insurance.

To understand how your payment breakdown changes over the life of your loan, use our mortgage amortization calculator to see a detailed month-by-month schedule showing how much goes toward principal versus interest.

Principal

Amount that reduces your loan balance. Increases over time.

Interest

Cost of borrowing money. Decreases as principal is paid down.

Taxes

Property taxes paid to local government, held in escrow.

Insurance

Homeowners insurance protecting against property damage.

Types of Mortgages

Fixed-Rate Mortgage

Interest rate remains constant throughout the loan term. Predictable monthly payments make budgeting easier.

Adjustable-Rate Mortgage (ARM)

Interest rate can change over time. Lower initial rates but payment uncertainty.

FHA Loans & VA Loans

Government-backed loans with lower down payment requirements (3.5% for FHA, 0% for VA).

Deciding between different mortgage types? Use our mortgage comparison calculator to see side-by-side comparisons of monthly payments, total interest, and payoff timelines for 15-year vs 30-year loans or fixed vs adjustable rates.

Shopping for the best mortgage rate? Our mortgage rate calculator helps you compare offers from different lenders and understand how even small rate differences impact your total loan cost.

If you're a veteran or active military member, check our VA loan calculator to explore zero-down-payment VA loan options and calculate your benefits.

How to Use This Mortgage Calculator

1

Enter Home Price

Input the purchase price of the home you're considering (e.g., $300,000)

2

Enter Down Payment

Input the amount you plan to pay upfront (e.g., $60,000)

3

Enter Interest Rate

Input the annual interest rate offered by your lender (e.g., 4.5%)

4

Enter Loan Term

Specify loan duration in years (typically 15 or 30 years)

5

Add Property Costs

Enter annual property tax and home insurance amounts

6

Get Complete Results

View total monthly payment and cost breakdown

Benefits of Using Mortgage Calculator

  • Home Affordability: Determine what home price fits your budget before house hunting.
  • Payment Planning: Understand complete monthly housing costs including taxes and insurance.
  • Loan Shopping: Compare different mortgage offers and terms effectively.
  • Down Payment Impact: See how different down payment amounts affect monthly costs.
  • Total Cost Analysis: Understand the complete cost of homeownership over time.

Factors That Affect Your Mortgage Payment

1. Home Price & Down Payment

Higher home price or lower down payment = Higher monthly payment. 20% down avoids PMI.

2. Interest Rate

Higher interest rate = Higher payment. Even 0.25% difference significantly impacts costs.

3. Loan Term

30-year = Lower monthly payment but more total interest. 15-year = Higher payment, less interest.

4. Property Taxes & Insurance

Higher property values and insurance costs increase monthly payments significantly.

Looking to pay off your mortgage faster? Use our mortgage extra payments calculator to see how additional principal payments can save you thousands in interest and shorten your loan term by years.

Considering refinancing to a lower rate? Our mortgage refinance calculator helps you determine if refinancing makes financial sense based on closing costs, new interest rates, and how long you plan to stay in your home.

Want to explore paying off your mortgage biweekly instead of monthly? Check our biweekly mortgage calculator to see how this simple payment strategy can save you interest and reduce your loan term.

Frequently Asked Questions

Common questions about mortgage calculations and home buying

What is included in a mortgage payment?

A complete mortgage payment typically includes four components: Principal, Interest, Taxes, and Insurance (PITI). Principal reduces your loan balance, interest is the cost of borrowing, taxes are paid to local governments, and insurance protects against property damage.

How much house can I afford?

Lenders typically want your total housing payment to be no more than 28% of your gross monthly income. Your total debt payments should be no more than 36% of your income.

Should I put 20% down or less?

Putting 20% down avoids PMI and reduces your monthly payment. However, a smaller down payment allows you to buy sooner and keep more cash for emergencies.

What's better: 15-year or 30-year mortgage?

A 15-year mortgage has higher monthly payments but significantly less total interest. A 30-year mortgage has lower payments but more total interest. Choose based on your cash flow needs.

Does this include PMI and closing costs?

No, this calculator doesn't include PMI (required with less than 20% down) or closing costs (2-5% of home price). These additional costs should be factored into your budget separately.

How accurate are these calculations?

Very accurate for the basic mortgage payment. Actual costs may vary based on lender fees, local tax rates, and specific loan terms. Always consult with your lender for precise quotes.

What credit score do I need for a mortgage?

Most conventional loans require 620+ credit score. FHA loans may accept scores as low as 580 with 3.5% down, or 500 with 10% down. Higher scores typically qualify for better interest rates.

How do interest rates affect my payment?

Interest rates significantly impact both monthly payments and total loan cost. A 1% rate increase on a $300,000 loan adds approximately $150-180 to monthly payments and tens of thousands to total interest.