mortgage payment calculator
See your estimated monthly payment in seconds. Adjust the numbers and watch everything update in real time.
how to use a mortgage calculator
A mortgage calculator is useful in a variety of situations:
- Compare homes at different price points: Higher-priced homes require more cash up front. Trying different prices helps you understand what fits your budget.
- Compare interest rates: A lower rate makes your mortgage cost less and leaves more room in your monthly budget.
- Try different down payment amounts: A smaller down payment gets you in sooner, but you'll pay more interest over time.
- See how the loan term affects your payment: Longer terms mean lower payments but more interest overall.
- Include taxes and insurance: Adding these gives you a more realistic picture of what you'll actually owe each month.
the mortgage payment formula
It's much easier to use our calculator, but here's the math behind it:
- M
- Monthly mortgage payment
- P
- Principal (loan balance)
- I
- Monthly interest rate (annual rate ÷ 12)
- T
- Term in months (years × 12)
For example, if you put 3% down on a $360,500 home, your principal is $350,000. With a 7% rate on a 30-year loan, your monthly payment is roughly $2,326 — covering principal and interest only.
mortgage terminology
Common mortgage terms to help you make the most of this calculator:
Home Price
The total cost to purchase the home.
Down Payment
The amount you pay up front to secure the loan. Minimums depend on the loan type, but for first-time buyers it's typically 3% – 3.5%.
Loan Term
How long you have to repay the mortgage — usually 15 or 30 years.
Interest Rate
The cost of borrowing money, expressed as a percentage. A lower rate means less paid over time.
Principal
The portion of each payment that goes toward reducing your loan balance.
Amortization
A schedule showing how each payment splits between principal and interest over the life of the loan.
Property Taxes
Local taxes that fund schools, public safety, parks, and other community services.
Homeowners Insurance
Coverage for property damage, personal belongings, and temporary living expenses if your home needs major repairs.
PMI (Private Mortgage Insurance)
If your down payment is less than 20%, you may need to pay PMI. It protects the lender if you stop making payments.
HOA Dues
Regular fees paid to a homeowners association for shared amenities and exterior maintenance in your community.