Mortgage Calculator: Estimate Your Monthly Home Payment

Our free mortgage calculator helps you estimate the monthly cost of financing a home. Enter the home price, down payment, interest rate, loan term, property taxes, homeowners insurance, PMI, HOA dues, and optional extra principal payments to see an estimated monthly payment and mortgage amortization schedule.

A mortgage payment is more than just principal and interest. Depending on the loan and property, your overall housing payment may also include property taxes, homeowners insurance, mortgage insurance, and other housing costs. The Consumer Financial Protection Bureau explains that total mortgage payments can include taxes, insurance, and mortgage insurance in addition to principal and interest. Learn more about total mortgage payments at the CFPB.

How Our Mortgage Calculator Works

The calculator first estimates the loan amount by subtracting your down payment from the home price. It then calculates the principal-and-interest payment using a standard fixed-rate mortgage formula.

In this formula, P is the mortgage principal, r is the monthly interest rate, and n is the total number of monthly payments. For a fixed-rate mortgage, this produces the scheduled principal-and-interest payment required to pay the loan off over the selected term.

The calculator then adds the estimated monthly amounts for property tax, homeowners insurance, PMI, and HOA dues. The optional extra principal payment is shown separately and is used to estimate a shorter payoff period and lower interest cost.

What Is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance. These are four common components used when discussing a mortgage payment. Your lender may collect taxes and insurance through an escrow account, although the exact arrangement depends on the loan and lender.

Our calculator goes beyond basic PITI by also allowing you to estimate PMI, HOA dues, and extra principal payments. This can provide a broader view of your potential monthly housing cost.

Mortgage Principal vs. Interest

The principal is the amount borrowed from the lender. Interest is the cost charged for borrowing that money. With a typical amortizing fixed-rate mortgage, every scheduled payment contains both principal and interest.

Early in the loan, a larger portion of the principal-and-interest payment generally goes toward interest because the outstanding balance is higher. As the balance decreases, more of the scheduled payment goes toward principal.

How Down Payment Affects Your Mortgage

A larger down payment generally means a smaller mortgage balance. A smaller loan balance can reduce the required principal-and-interest payment and the total interest paid over the scheduled term, all else being equal.

Your down payment can also affect your loan-to-value ratio, or LTV. This calculator uses LTV as part of its PMI estimate when the calculated ratio is above 80%.

What Is PMI?

PMI stands for private mortgage insurance. It may be required on some conventional mortgages when the borrower’s down payment is relatively small. PMI requirements and pricing vary by lender, loan program, borrower profile, and other factors.

This calculator uses the PMI rate you enter and applies it when the estimated loan-to-value ratio is above 80%. This is only an estimate and should not be treated as an actual PMI quote.

15-Year vs. 30-Year Mortgage

A shorter mortgage term usually means a higher scheduled principal-and-interest payment but fewer payments overall. A longer term generally lowers the scheduled principal-and-interest payment while extending the repayment period.

Use the 15-year, 20-year, and 30-year options in this mortgage calculator to compare how the loan term changes your estimated payment and total interest.

How Extra Mortgage Payments Can Save Interest

Paying additional money toward principal can reduce the outstanding mortgage balance faster. A lower balance generally means less interest accrues over time.

Enter an amount in the Extra Monthly Principal field to estimate how quickly the mortgage could be paid off under that additional payment scenario.

Actual results depend on your mortgage terms and how your lender applies additional payments. Check your loan documents for any applicable prepayment terms.

Mortgage Costs Beyond the Monthly Payment

A mortgage payment calculator cannot represent every cost involved in buying a home. Depending on the transaction, borrowers may also encounter lender charges, origination fees, points, appraisal costs, title services, government fees, prepaid expenses, and other closing costs.

The CFPB explains that mortgage costs can include both upfront closing costs and expenses paid over time. Review your lender’s Loan Estimate carefully when comparing actual mortgage offers. Review the CFPB Loan Estimate guide.

Tips for Comparing Mortgage Estimates

• Compare the interest rate and loan term.
• Compare the estimated principal-and-interest payment.
• Check whether taxes and homeowners insurance are included.
• Review mortgage insurance costs if applicable.
• Compare upfront lender and closing costs.
• Review points, lender credits, and other fees.
• Look at the total cost of borrowing rather than only the monthly payment.

The CFPB recommends reviewing Loan Estimates when comparing mortgage offers so borrowers can evaluate payment amounts, mortgage insurance, upfront costs, lender credits, and cash-to-close information.

Related Financial Calculators

After estimating your mortgage payment, you can compare it with other financial calculations on DollarSenseUSA:

• Loan Calculator — estimate payments and interest for a general loan.
• Salary Calculator — convert hourly pay into weekly, monthly, and annual gross income.
• Paycheck Calculator — estimate gross and take-home paycheck amounts.
• All Financial Calculators — explore the complete DollarSenseUSA calculator collection.

Frequently Asked Questions