Mortgage Calculator – Estimate Your Monthly Payment
Estimate your monthly mortgage payment (principal and interest) plus total interest over the life of the loan.
About the Mortgage Calculator
What is the Mortgage Calculator?
A mortgage calculator estimates the monthly payment you will make on a home loan and shows how much of the total cost is interest. It takes the loan amount, interest rate and term and applies the standard amortizing-loan formula used by virtually every lender.
Why use this calculator?
Buying a home is the largest purchase most people ever make. Knowing the real monthly number before you shop prevents you from falling in love with a house you cannot afford, helps you set a realistic budget, and lets you compare offers from different lenders on equal footing.
How to use it
- Enter the loan amount (the home price minus your down payment).
- Enter the interest rate your lender quoted you.
- Choose the loan term — usually 15 or 30 years.
- Optionally add annual property tax and home insurance to see the full monthly cost (PITI).
- Read the monthly payment at the top and scroll the amortization table to see how interest front-loads the early years.
Formula
M = P · [ r(1+r)^n ] / [ (1+r)^n − 1 ] where r = annual rate ÷ 12, n = years × 12
This tool shows principal and interest. Lenders may also collect property tax, insurance, HOA dues and PMI in an escrow account.
Frequently Asked Questions
What does PITI stand for?
PITI is Principal, Interest, Taxes and Insurance — the four parts of a typical monthly housing payment. Taxes and insurance are usually collected in escrow and paid on your behalf once or twice a year.
Why is so much of my early payment interest?
Interest is charged on the remaining balance. At the start the balance is the largest, so interest is highest; as the balance falls, more of each payment goes to principal.
What is included in a monthly mortgage payment?
Most payments combine principal, interest, property taxes and homeowners insurance (often called PITI). Some loans also include private mortgage insurance (PMI).
What is PMI and when can I drop it?
Private mortgage insurance is usually required when your down payment is under 20%. You can typically request removal once you reach 20% equity.
Fixed versus adjustable rate — which is better?
A fixed rate keeps the same interest rate for the whole term, giving predictable payments. An adjustable rate starts lower but can rise after the initial period.
How much house can I afford?
A common guideline is that housing costs stay below 28% of gross monthly income and total debt below 36%, though lenders and budgets vary.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on self-reported data. Pre-approval is a verified commitment after a lender reviews your finances.
What is the difference between principal and interest?
The principal is the amount you borrow. Interest is the fee charged for borrowing it, shown either as an annual rate (APR) or a periodic rate. Early payments go mostly toward interest; later payments go mostly toward principal.
How does the loan term affect my payment?
A longer term lowers the monthly payment but increases the total interest you pay over the life of the loan. A shorter term raises the monthly payment but costs less overall.
What is an amortization schedule?
It is a table that breaks every payment into its principal and interest portions and shows the remaining balance after each payment.