How is my monthly mortgage payment calculated?

Your monthly payment includes principal, interest, property taxes, homeowners insurance, and PMI (if applicable). The calculator uses the standard amortization formula to determine how much of each payment goes toward principal vs interest.

Should I get a 15-year or 30-year mortgage?

15-year mortgages have higher monthly payments but lower total interest (often 50% less). 30-year mortgages have lower payments and more flexibility. Choose based on your cash flow and financial goals.

When can I remove PMI from my mortgage?

PMI can be removed when you reach 20% home equity (80% loan-to-value ratio). You can get there faster by making extra principal payments or if your home value increases.

Should I pay extra toward my mortgage or invest?

If your mortgage rate is below 5%, investing often provides better returns (7-10% historically). If above 6%, paying extra toward the mortgage guarantees that return. Consider your risk tolerance and other financial goals.

Mortgage Payment Calculator

Calculate your monthly mortgage payment, total interest, and see a complete amortization schedule

Inputs

Home Priceⓘ

Total cost of the property

Down Paymentⓘ

Typical down payments are 20% for conventional loans

Interest Rateⓘ

Current average rates are 6-7%

Loan Termⓘ

30 years is most common

Annual Property Taxⓘ

Typically 1-2% of home value annually

Annual Home Insuranceⓘ

Average is $1,200-$2,000 per year

Monthly PMIⓘ

Only required when down payment is less than 20%

Enter values to see results

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What is this?

A mortgage calculator helps you estimate your monthly payments and understand the total cost of your home loan over time. It breaks down principal, interest, taxes, and insurance (PITI).

How to use

Enter your home price, down payment percentage, interest rate, and loan term. The calculator will show your monthly payment, total interest, and a detailed payment schedule.

Tips

A 20% down payment helps you avoid PMI (Private Mortgage Insurance)
Shorter loan terms (15 vs 30 years) have higher monthly payments but save significantly on interest
Property taxes and insurance can add 30-50% to your monthly housing cost
Consider making extra principal payments to pay off your mortgage faster
Compare rates from multiple lenders - a 0.5% rate difference can save tens of thousands

Disclaimer: This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual results may vary based on lender terms, market conditions, and individual circumstances. Consult a qualified financial advisor before making financial decisions. See our full disclaimer for details.

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