Mortgage Payment Calculator

Use the standard fixed-rate mortgage formula: M = P [ r(1 + r)ⁿ ] / [ (1 + r)ⁿ - 1 ]

Where:

• M = Total monthly principal and interest payment
• P = Principal loan amount (the amount you borrow)
• r = Monthly interest rate (annual interest rate divided by 12 months)
• n = Total number of payments (loan term in years multiplied by 12 months)

Add property taxes, home insurance, PMI, and HOA fees to this result for a more accurate monthly housing payment estimate.

A 15-year mortgage typically has higher monthly payments because the loan is repaid in half the time, but it usually costs less in total interest over the life of the loan. A 30-year mortgage spreads payments over a longer period, which can lower the monthly payment, but keeping the loan for the full term increases the total interest paid. Compare both the monthly payment and the long-term interest cost when choosing a loan term.

Yes. Extra payments applied to principal reduce the loan balance faster, shortening the loan term and lowering total interest paid over the life of the loan.

Amortization is the process of paying off a loan through scheduled payments over time. With a typical fixed-rate mortgage, the principal-and-interest portion of each payment stays the same, but how it is divided changes: early payments cover more interest because the loan balance is higher, while later payments put more toward reducing the principal. As the balance declines, less interest accrues, and the loan is paid off by the end of its term.

Rates change frequently, so use a recent quote for your loan type and borrower profile. Current 30-year fixed quotes are often in the mid-single digits, but a current lender quote is more accurate than a static rate.

A higher credit score can help you qualify for a lower interest rate, reducing both your monthly payment and total interest. Your down payment, existing debt, and income help lenders assess the risk of the loan and your ability to repay it, which can affect the rate you qualify for. Rates also vary by loan type, while market conditions influence the rates lenders offer overall.

Some conventional loans allow down payments as low as 3%, while eligible VA and USDA loans may offer 0% down options. A down payment of 20% or more generally lets you avoid private mortgage insurance (PMI) on a conventional loan, reducing your monthly payment. The best amount depends on the loan program and whether a smaller down payment adds PMI.

Yes, if your loan uses an escrow account. Most standard mortgages bundle a portion of your annual property taxes directly into your monthly payment, which your lender holds in escrow and pays to your local government on your behalf. Without an escrow account, you are responsible for paying these property tax bills separately. To give you a realistic look at your total commitment, this calculator automatically includes estimated property taxes under Additional Costs. Because tax rates vary locally and can change over time, entering your estimated property tax amount will provide the most accurate estimate.

As a general rule of thumb, you should budget an additional 1.5% to 3% of the home's purchase price annually for extra costs including local property taxes, homeowners insurance, private mortgage insurance (PMI), and any applicable HOA fees. Because these figures vary significantly by location and specific property, we recommend replacing our automatic estimates with your local figures to build the most accurate monthly budget.

For many conventional loans, you can request cancellation around 20% equity, while automatic termination often applies at 22% if payments are current. Rules vary by loan type and servicer.

Closing costs often run about 2% to 5% of the loan amount and may include lender, appraisal, title, legal, recording, and prepaid expenses. Ask for a Loan Estimate to compare them accurately.

These fields are pre-populated based on broad national averages and automatically adjust as the entered home price changes. Entering your own value stops automatic estimates for that field, including if you enter $0 or clear it. Click Reset to auto to re-enable automatic estimates. Replace the starting values with a local insurance quote and property tax figures for a more accurate estimate.

When the down payment is below 20% of the home price, PMI is automatically estimated at an annual rate of 0.75% of the loan amount and adjusts as the loan amount changes. It returns to $0 when the down payment increases to 20% or more of the home price. Enter PMI as a dollar amount or use the percentage estimator link to estimate the dollar amount from a percentage. Entering your own value in the PMI field stops automatic estimates and keeps your entry as the loan amount changes. Click Reset to auto to re-enable automatic estimates. Actual lender PMI rates and cancellation rules may differ.

No. Normal day-to-day costs such as utilities (water, gas, and electricity), maintenance, and home repairs are not included. Budget for them separately when deciding what monthly housing payment you can afford.

Yes. Select the Download link above the calculator, then choose Download PDF or Download Excel from the menu to save your current inputs and estimated monthly payment for your records.

Use the Home Affordability Calculator to estimate an affordable home price that fits your monthly mortgage budget.