Mortgage Payment Calculator
Estimate your monthly mortgage (mtg) payment, including principal, interest, taxes, insurance, HOA, and PMI.
How to use this mtg payment calculator
This tool gives you a practical estimate of what buying a home may cost each month. Enter the purchase price, your down payment, interest rate, and loan term, then layer in property taxes, insurance, HOA dues, and optional PMI. The calculator returns both the core principal-and-interest payment and a more realistic monthly total.
If you are comparing multiple homes, run this calculator several times and save the results. It is often easier to make a good buying decision when your numbers are side-by-side.
What your mortgage payment includes
1) Principal and interest
Principal is the amount you borrowed. Interest is the lender’s charge for borrowing that money. Most fixed-rate mortgages use an amortized payment, which means the monthly principal-and-interest amount stays level while the share of principal increases over time.
2) Taxes and insurance
Property taxes and homeowner’s insurance are commonly escrowed, meaning your lender collects a monthly amount and pays those bills on your behalf. If you are estimating a full “housing payment,” include both.
3) HOA and PMI
HOA dues are common in condos and planned communities. PMI (private mortgage insurance) may apply when your down payment is below 20%. PMI is usually temporary but can meaningfully increase monthly cost in the early years.
The formula behind the calculator
The principal-and-interest portion of a fixed-rate mortgage is calculated using:
- M = P × [r(1+r)n] / [(1+r)n − 1]
- M = monthly principal + interest
- P = loan principal
- r = monthly interest rate (annual rate / 12)
- n = total number of monthly payments
This page also runs an amortization simulation to estimate payoff date and total interest, especially useful when you add extra monthly principal payments.
Why extra payments matter
Even small extra principal payments can reduce total interest and shorten your loan term. That is because interest is charged on the remaining balance each month. Lower balance means less future interest.
- Adding $100–$300/month can save years on a 30-year mortgage.
- Interest savings are generally largest when extra payments begin early.
- Consistency beats one-time large payments for most households.
Common mistakes when estimating mortgage costs
- Using only principal-and-interest and ignoring taxes/insurance.
- Forgetting PMI when down payment is under 20%.
- Assuming today’s insurance and tax numbers stay flat forever.
- Skipping maintenance and repair reserves in monthly budgeting.
Quick buying strategy for better decisions
Before house hunting, decide on a monthly payment range that feels safe during normal life and during stressful months. Then reverse-engineer your max home price using this calculator. This keeps emotions from pushing you into a payment that strains your budget.
If possible, compare at least three scenarios: conservative, expected, and stretch. You can do that by changing price, rate, and tax assumptions in a few clicks.
Final note
This mtg payment calculator is designed for planning and education. Actual lender quotes may differ due to credit score, loan type, points, closing costs, local taxes, and underwriting rules. Always verify final numbers with a licensed mortgage professional before making an offer.