Mortgage Payment Calculator
Calculate your monthly mortgage payment including principal and interest. See how home price, down payment, interest rate, and loan term affect your monthly payment.
20.0% of home price
How to Use the Mortgage Payment Calculator
Our mortgage payment calculator helps you estimate your monthly payment based on four key factors: home price, down payment, interest rate, and loan term. Simply enter your numbers and click "Calculate Payment" to see your estimated monthly mortgage payment, total payment over the life of the loan, and total interest paid.
Understanding Your Mortgage Payment
Your monthly mortgage payment consists of several components, commonly referred to as PITI:
The amount that goes toward paying down your loan balance. This increases over time as you pay off more of the loan.
The cost of borrowing money from the lender. This decreases over time as your principal balance decreases.
Property taxes paid to your local government. These are typically escrowed and paid by your lender on your behalf.
Homeowners insurance and possibly PMI (Private Mortgage Insurance) if your down payment is less than 20%.
Factors That Affect Your Monthly Payment
Several factors influence how much you'll pay each month for your mortgage. Understanding these can help you make informed decisions about your home purchase.
Home Price
The purchase price of the home is the starting point. A higher home price means a larger loan and higher monthly payments.
Down Payment
A larger down payment reduces your loan amount and monthly payment. It can also help you avoid PMI if you put down 20% or more.
Interest Rate
Even small changes in interest rates can significantly impact your monthly payment. Shop around for the best rate.
Loan Term
A 30-year mortgage has lower monthly payments but higher total interest. A 15-year mortgage has higher payments but you'll save significantly on interest.
Frequently Asked Questions
How is my monthly mortgage payment calculated?
Your monthly mortgage payment is calculated using the loan amount (home price minus down payment), interest rate, and loan term. The formula accounts for principal and interest payments over the life of the loan.
What is included in a mortgage payment?
A basic mortgage payment includes principal and interest. However, most lenders also require property taxes, homeowners insurance, and possibly PMI (Private Mortgage Insurance) if your down payment is less than 20%. These are often bundled into your monthly payment.
How does the interest rate affect my monthly payment?
The interest rate has a significant impact on your monthly payment. Even a 0.5% difference in interest rate can change your monthly payment by hundreds of dollars on a typical home loan.
Should I choose a 15-year or 30-year mortgage?
A 15-year mortgage has higher monthly payments but you'll pay significantly less interest over the life of the loan. A 30-year mortgage has lower monthly payments but higher total interest. Choose based on your budget and financial goals.