Mortgage Calculator
Calculate monthly mortgage payments with PMI, taxes, insurance and detailed amortization schedule
Monthly Payment
$3,045
What is a Mortgage?
A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral. Most mortgages have terms of 15 or 30 years, though other terms are available. The borrower makes monthly payments that include both principal and interest, along with property taxes, insurance, and sometimes PMI.
How Can Mortgage Calculator Help You?
Our mortgage calculator provides comprehensive analysis for your home loan planning:
- Accurate Payment Estimation: Calculate exact monthly payments including all components
- Affordability Planning: Determine what home price fits your budget
- Interest Cost Analysis: See total interest paid over the loan term
- PMI Planning: Factor in private mortgage insurance costs
- Tax & Insurance Integration: Include property taxes and homeowner's insurance
Mortgage Payment Formula
The monthly mortgage payment formula is:
Where:
- M = Monthly mortgage payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
How Mortgage Payments Work
Your monthly mortgage payment typically includes four components (PITI):
- Principal: The amount that goes toward paying down the loan balance
- Interest: The cost of borrowing money from the lender
- Taxes: Property taxes collected by your lender and paid to local government
- Insurance: Homeowners insurance and PMI (if down payment is less than 20%)
Frequently Asked Questions
What factors affect my mortgage payment?
Your mortgage payment is affected by home price, down payment amount, interest rate, loan term, property taxes, homeowner's insurance, and PMI if applicable.
How much house can I afford?
Generally, your total monthly housing costs shouldn't exceed 28% of your gross monthly income. Use our calculator to test different scenarios.
What is PMI and when do I need it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home's value. It protects the lender if you default on the loan.