How Does This Mortgage Calculator Work?
Enter the home price, down payment, interest rate, and mortgage term to estimate your monthly principal and interest payment. Optional property tax and home insurance can be included for a broader monthly housing-cost estimate.
Mortgage Payment Formula
M is the monthly principal-and-interest payment, P is the loan principal, r is the monthly interest rate, and n is the total number of monthly payments.
What Is Included in a Mortgage Payment?
A mortgage payment commonly includes principal and interest. Property taxes and homeowners insurance may also be included, often through an escrow account. Mortgage insurance may apply to some loans, while HOA or condominium fees may be an additional housing cost and are often paid separately. This calculator can include property tax and home insurance in the estimate, but it does not currently calculate mortgage insurance, PMI, HOA fees, lender fees, or closing costs.
Frequently Asked Questions About Mortgage Calculators
How do I calculate my monthly mortgage payment?
Enter the home price, down payment, annual interest rate, and loan term. The calculator applies the standard fixed-rate mortgage formula to estimate the monthly principal and interest payment.
How much will my mortgage payment be with taxes and insurance?
Add your estimated annual property tax and homeowners insurance to the optional fields. The calculator divides those annual costs by 12 and adds them to the principal-and-interest payment.
How does a down payment affect my mortgage payment?
A larger down payment reduces the amount you need to borrow, which generally lowers the monthly principal-and-interest payment and total interest over the loan term.
How does the mortgage term affect total interest?
A longer term can reduce the monthly payment but usually increases the total interest paid over the life of the mortgage.
Does this mortgage calculator include PMI or HOA fees?
No. This calculator can include optional property tax and homeowners insurance, but it does not currently calculate private mortgage insurance (PMI) or HOA fees. If these costs apply to you, add them separately when estimating your total monthly housing cost.