Mortgage Payment Calculator
Use this professional mortgage payment calculator to estimate your monthly payment and total cost. Enter your loan amount, interest rate, and term, then optionally add property tax, insurance, PMI, HOA, and extra principal. Get an instant breakdown, payoff insights, and a downloadable amortization schedule.
Results
| # | Payment | Interest | Principal | Extra | Balance |
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Authoritative content
Data Source and Methodology
Authoritative Data Source: Consumer Financial Protection Bureau (CFPB), “How is a mortgage payment calculated?”, last updated 2023. Direct link: https://www.consumerfinance.gov/ask-cfpb/how-is-a-mortgage-payment-calculated-en-1907/.
All calculations are strictly based on the standard amortization formulas and the components described by the CFPB. All calculations are strictly based on the formulas and data provided by this source.
The Formula Explained
Let P be the loan amount (principal), r the monthly interest rate, and n the total number of monthly payments:
Monthly rate: \( r = \dfrac{i_{\text{annual}}}{12} \)
Total payments: \( n = \text{years} \times 12 \)
Monthly principal and interest (P&I):
\[ M = \frac{P \cdot r \cdot (1+r)^{n}}{(1+r)^{n} - 1} \]
Total interest: \( I_{\text{total}} = M \cdot n - P \)
Optional monthly escrows and dues added to the housing payment:
\[ \text{Taxes/Ins} = \frac{\text{PropertyTax}_{\text{annual}} + \text{Insurance}_{\text{annual}}}{12}, \quad \text{TotalMonthly} = M + \text{Taxes/Ins} + \text{PMI}_{\text{monthly}} + \text{HOA}_{\text{monthly}} \]
If an extra monthly principal \( E \) is applied, the amortization advances faster; the calculator simulates period-by-period reductions until payoff.
Glossary of Variables
- Loan amount (P): The principal borrowed.
- Interest rate (annual): The yearly note rate; converted to a monthly rate for amortization.
- Loan term (years): The number of years over which the loan amortizes.
- Monthly P&I (M): Payment that covers interest and principal, excluding taxes/fees.
- Property tax (annual): Estimated yearly property tax; divided by 12 for monthly escrow.
- Homeowners insurance (annual): Yearly hazard insurance; divided by 12 for monthly escrow.
- PMI (monthly): Private Mortgage Insurance, when applicable.
- HOA dues (monthly): Homeowners Association dues, if applicable.
- Total monthly payment: Monthly P&I plus taxes, insurance, PMI, and HOA.
- Total interest: Sum of interest across all payments until payoff.
- Extra principal: Additional amount applied to reduce the principal each month.
How It Works: A Step-by-Step Example
Suppose you borrow P = $350,000 at 6.5% annual interest for 30 years. Then r = 0.065 / 12 ≈ 0.0054167, and n = 360.
If annual property tax is $4,800 and annual insurance is $1,500, then Taxes/Ins = (4800 + 1500) / 12 = $525. Add PMI = $0 and HOA = $0, the total monthly housing payment ≈ $2,737.03. If you add an extra $100 principal each month, the calculator will simulate faster payoff and lower total interest.
Frequently Asked Questions (FAQ)
What inputs are required to calculate my mortgage payment?
At minimum, you need the loan amount, annual interest rate, and term in years. Taxes, insurance, PMI, HOA, and extra principal are optional and help estimate your full housing payment.
How accurate are these results?
Results use standard amortization formulas and user-provided assumptions. Real-world figures may vary due to escrow adjustments, changing taxes/insurance, and lender-specific practices.
Can I include biweekly payments?
Not directly. However, adding approximately one extra monthly payment per year (e.g., 1/12th of your P&I each month) approximates the effect of a biweekly schedule.
When does PMI drop off?
PMI typically ends when you reach 20% equity based on current guidelines and investor rules. This calculator treats PMI as a fixed monthly input for simplicity.
Does the interest rate change over time?
This tool models a fixed-rate mortgage only. For adjustable-rate mortgages (ARMs), payments can change when rates reset.
Why is total interest so high early on?
Amortized loans allocate more interest upfront because it is calculated on the outstanding principal. As principal declines, the interest portion decreases and principal increases.
Are taxes and insurance required?
Most lenders require you to maintain homeowners insurance. Escrowing taxes and insurance is common, though rules vary. Consult your lender for details.