Estimate your monthly mortgage payment in seconds. Enter the
home price, down payment, loan term, and interest rate to see your payment,
total interest, and the full cost of the loan — with optional property tax,
insurance, and PMI.
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Monthly payment
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Enter your loan details above
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How a mortgage payment is calculated
Your core monthly payment covers principal and interest (P&I). It is
calculated from three things: the loan amount (home price minus down payment),
the interest rate, and the loan term. The standard amortization formula is:
M = P × [ r(1 + r)ⁿ ] ÷ [ (1 + r)ⁿ − 1 ]
P = loan amount r = monthly interest rate n = total payments
The monthly rate r is the annual rate divided by 12, and n
is the number of years multiplied by 12. The math is fiddly by hand, which is
why the calculator does it instantly.
Example: A $280,000 loan (a $350,000 home with
$70,000 down) over 30 years at 6.5% has a principal & interest payment of
about $1,770 per month. Over the full 30 years you would pay roughly
$357,000 in interest — more than the loan itself.
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What's included in a monthly payment
Lenders often refer to "PITI" — the four parts of a full housing payment:
Principal — the portion that pays down what you borrowed.
Interest — the lender's charge for the loan. Early in the loan,
most of your payment is interest.
Taxes — property tax, usually collected monthly into an escrow
account.
Insurance — homeowners insurance, and PMI if your down payment
is under 20%.
Turn on "Add property tax, insurance & HOA" above to see your true
total monthly cost, not just principal and interest.
How to lower your mortgage payment
Larger down payment — borrowing less directly cuts the payment
and can remove PMI once you reach 20% equity.
Shorter term — a 15-year loan has a higher monthly payment but
far less total interest.
Lower rate — even 0.5% off the rate can save tens of thousands
over the life of the loan. Shop multiple lenders.
Extra principal payments — paying a little extra each month
shortens the loan and reduces total interest.
Frequently asked questions
How is a monthly mortgage payment calculated?
It uses the amortization formula based on the loan amount,
monthly interest rate, and number of payments. The result is a fixed
principal-and-interest payment for the life of a fixed-rate loan.
What is included in a mortgage payment?
A full payment ("PITI") includes principal, interest,
property taxes, and insurance. PMI and HOA fees may also be added.
How much should my down payment be?
20% of the home price lets you avoid private mortgage
insurance (PMI). Many loans allow less — as low as 3–5% — but you'll
usually pay PMI until you build 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year loan has higher monthly payments but much lower
total interest. A 30-year loan has lower monthly payments but costs more
overall. It depends on your budget and goals.
How much total interest will I pay?
On a 30-year loan you often pay close to the loan amount
again in interest. The calculator shows your exact total interest based on
the rate and term you enter.
This calculator provides estimates for general information
only and is not financial advice. Actual loan terms, rates, taxes, and
insurance vary — consult a licensed lender for an accurate quote.
