Mortgage Calculator
Calculate monthly mortgage payments and total interest
Calculator
Yearly property tax amount
Yearly insurance premium
Monthly Payment Breakdown
How to Use
Calculate your mortgage payment in 4 steps
Enter home price
Input the purchase price of the home
Enter down payment
Input your down payment amount
Set loan terms
Enter interest rate and loan term (15 or 30 years)
Add taxes & insurance
Include property tax and homeowner's insurance
Mortgage Payment Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where M = monthly payment, P = principal, r = monthly interest rate, n = number of payments.
Frequently Asked Questions
Monthly mortgage payment is calculated using the loan amount, interest rate, and term. The formula considers compound interest over time. A $300,000 loan at 6.5% for 30 years equals about $1,896/month for principal and interest, plus taxes and insurance.
A common rule is the 28/36 rule: spend no more than 28% of gross monthly income on housing costs and no more than 36% on total debt. If you earn $6,000/month, aim for housing costs under $1,680/month including mortgage, taxes, and insurance.
15-year mortgages have higher monthly payments but lower total interest. A $300,000 loan at 6%: 30-year = $1,799/month ($347,515 total interest) vs 15-year = $2,532/month ($155,683 total interest). Choose based on your budget and goals.
PMI (Private Mortgage Insurance) is required when your down payment is less than 20%. It typically costs 0.5-1% of the loan annually. On a $300,000 loan, PMI could be $125-250/month until you reach 20% equity.