Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, and insurance. Free US mortgage calculator with amortization.
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Monthly Payment (P&I)
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Total Monthly Payment —
Loan Amount —
Total Interest Paid —
Total Cost of Loan —
How to Use This Calculator
- Enter the Home Price — the full purchase price of the property.
- Enter your Down Payment amount. A 20% down payment eliminates PMI.
- Enter the Interest Rate — check current rates from lenders or Bankrate.
- Select your Loan Term — 30 years is most common, 15 years saves on interest.
- Expand More Options to add property tax, insurance, and PMI for a complete PITI estimate.
Formula
Monthly Payment (P&I):
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- P = Loan amount (Home Price − Down Payment)
- r = Monthly interest rate (Annual rate ÷ 12)
- n = Total number of payments (Years × 12)
Example
Example: $400,000 home, $80,000 down, 6.8% rate, 30-year term.
- Loan Amount: $320,000
- Monthly Rate: 6.8% ÷ 12 = 0.5667%
- Monthly P&I Payment: $2,091.20
- Total Interest Paid: $433,832
- With taxes ($400/mo) + insurance ($100/mo): $2,591/mo total
Frequently Asked Questions
- Your monthly principal and interest payment is calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments.
- A full mortgage payment (PITI) includes Principal, Interest, property Taxes, and Insurance. If your down payment is less than 20%, Private Mortgage Insurance (PMI) is also added.
- A common rule is to keep your monthly mortgage payment below 28% of your gross monthly income. On a $80,000/year income, that is about $1,867/month toward housing costs.
- PMI (Private Mortgage Insurance) protects the lender if you default. It is required when your down payment is less than 20%. You can request removal once you reach 20% equity in your home.
- A 15-year mortgage saves a significant amount in interest and builds equity faster, but requires higher monthly payments. A 30-year mortgage offers lower payments and more cash flow flexibility.