Mortgage Calculator
Calculate your monthly mortgage payments, including principal, interest, taxes, and insurance.
Mortgage Basics Explained
Understand mortgage payments, loan amortization schedules, interest rates, escrow, and extra payments.
How to Calculate & Use the Mortgage Calculator
Planning to buy a home? Use our free mortgage payment calculator to estimate your total monthly housing costs. Simply input the home purchase price, down payment, annual interest rate, and loan term to calculate your principal and interest payments. Our tool also factors in property taxes and homeowners insurance to give you an accurate picture of your real monthly budget.
Input & Variable Breakdown:
- Home Price: Currency amount to be factored.
- Down Payment: Currency amount to be factored.
- Interest Rate: Relational multiplier percentage value.
- Loan Term: Bounded variable used in the formulas.
- Property Tax/Yr: Currency amount to be factored.
- Home Insurance/Yr: Currency amount to be factored.
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Frequently Asked Questions
Monthly mortgage payments are calculated using the standard amortization formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where M is monthly payment, P is principal, r is monthly interest rate, and n is total payments.
PITI stands for Principal, Interest, Taxes, and Insurance. These are the four core components of a monthly mortgage payment.
A larger down payment reduces the principal loan amount you need to borrow. This directly lowers your monthly payment, reduces total interest paid, and can eliminate Private Mortgage Insurance (PMI) if you reach 20% down.