What Is a Mortgage Calculator?

A mortgage calculator helps you estimate your monthly mortgage payment based on the home price, down payment, loan term, and interest rate. Our free mortgage calculator also factors in property taxes and home insurance to give you a true total monthly cost (PITI).

How to Use This Calculator

Enter the home price you are considering.
Enter your down payment (typically 3%–20% of the home price).
Select your loan term (15, 20, or 30 years).
Enter the current interest rate quoted by your lender.
Optionally add annual property tax and home insurance estimates.
Click Calculate Mortgage to see your monthly payment and full amortization schedule.

Understanding Your Mortgage Payment (PITI)

Principal: The portion that reduces your loan balance each month.
Interest: The lender’s fee for borrowing, calculated on your remaining balance.
Taxes: Property taxes collected monthly and held in escrow.
Insurance: Homeowner’s insurance, also typically escrowed by the lender.

Tips for Getting the Best Mortgage

A higher credit score (740+) qualifies you for the lowest interest rates.
A 20% down payment eliminates Private Mortgage Insurance (PMI), saving $50–$300/month.
Compare multiple lenders — even a 0.25% rate difference saves thousands over the loan life.
Consider a 15-year mortgage if you can afford higher payments — you pay far less total interest.

How Is the Mortgage Payment Calculated?

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Variable Definitions

Monthly payment

Principal loan amount (home price minus down payment)

Monthly interest rate (annual rate ÷ 12)

Number of monthly payments (loan term in years × 12)

💡 This is the standard mortgage payment formula used by banks and lenders worldwide. Property tax and insurance are added on top of this base payment.

Frequently Asked Questions — Mortgage Calculator

What is included in a monthly mortgage payment?

A typical monthly mortgage payment consists of four components, often called PITI: Principal (the portion that reduces your loan balance), Interest (the cost of borrowing), property Taxes (collected monthly and held in escrow), and homeowner's Insurance (also held in escrow). Some loans also require Private Mortgage Insurance (PMI) if your down payment is less than 20%.

How does the down payment affect my mortgage?

A larger down payment reduces your loan amount, which lowers both your monthly payment and the total interest you pay over the life of the loan. Additionally, putting down 20% or more eliminates the requirement for Private Mortgage Insurance (PMI), saving you an additional $50–$300 per month on average.

What is the difference between a 15-year and 30-year mortgage?

A 15-year mortgage has higher monthly payments but builds equity faster and pays significantly less interest over the life of the loan. A 30-year mortgage has lower monthly payments, making it more affordable month-to-month, but you will pay roughly 2–3× more in total interest. Use our calculator to compare both scenarios with your specific numbers.

What interest rate should I use in the calculator?

Use the APR (Annual Percentage Rate) quoted by your lender, or the current average mortgage rate for your loan type and credit profile. As of 2024, 30-year fixed rates have been between 6.5%–7.5%. Your actual rate will depend on your credit score, down payment, loan type, and lender.

Mortgage Calculator