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What will my monthly mortgage payment be?

Calculate your monthly mortgage payment including principal, interest, taxes, and insurance. Understand exactly what you'll pay each month.

What This Calculator Is

A mortgage payment calculator is a financial planning tool that breaks down your total monthly housing payment into its component parts: principal, interest, property taxes, and homeowner's insurance (commonly called PITI). Unlike simple loan calculators, this tool gives you the complete picture of what you'll actually pay each month, helping you understand the true cost of homeownership beyond just the loan itself.

Who This Calculator Is For

This calculator is designed for first-time homebuyers exploring what they can afford, current homeowners considering a move, and anyone comparing different home prices or loan terms. Real estate professionals, mortgage brokers, and financial advisors also use it to help clients understand their options. If you're at any stage of the home buying journey—from casual browsing to making an offer—this tool provides the clarity you need.

When to Use This Calculator

Use this calculator before you start house hunting to establish a realistic budget, when comparing properties at different price points, when deciding between different down payment amounts, or when evaluating whether a 15-year versus 30-year mortgage fits your financial situation. It's also valuable when property taxes or insurance rates change, as these significantly impact your monthly costs.

Loan Details

$
$
%
%
$/year
%
$/year
$/mo

Estimated Monthly Payment

$2,523

30-year fixed at 6.5%

Principal & Interest
$2,022.62
Property Taxes
$400.00
Home Insurance
$100.00

Loan Summary

Loan amount$320,000
Total interest paid$408,142
Total of all payments$988,142

Savings, if any, vary based on consumer credit profile, interest rate availability, and other factors.

Default rates: Federal Reserve Economic Data (FRED), Freddie Mac Primary Mortgage Market Survey

How Mortgage Payment Is Calculated

The calculator uses the standard amortization formula to determine your principal and interest payment. It factors in your loan amount (home price minus down payment), interest rate, and loan term. Property taxes and insurance are then added to give you the complete monthly picture.

M = L × r(1+r)^n / ((1+r)^n − 1), where L = HomePrice − DownPayment
PMI = 0.5% × L / 12 (if DownPayment% < 20 and not VA)
Total Monthly = M + Taxes/12 + Insurance/12 + PMI + HOA
Where: L = loan amount, r = monthly interest rate (annual rate/100/12), n = number of payments (loanTerm × 12), M = principal & interest payment.

Key Takeaways

  • •Aim to keep your housing payment below 28% of your gross monthly income
  • •A 20% down payment eliminates the need for Private Mortgage Insurance (PMI)
  • •Consider a 15-year mortgage if you can afford higher payments — you'll save significantly on interest
  • •Property tax rates vary significantly by location — research your specific area
  • •Shop around for homeowner's insurance to find the best rates

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