Mortgage Payment Calculator
Calculate your monthly mortgage payment including taxes and insurance
Additional Monthly Costs
Enter a home price to calculate your monthly payment
Results update automatically as you type
Mortgage Payment Formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where P = Principal, r = Monthly interest rate, n = Number of payments
Understanding Your Mortgage Payment
Your monthly mortgage payment typically consists of four components, known as PITI: Principal, Interest, Taxes, and Insurance. Understanding each component helps you budget effectively and compare loan options.
Components of Your Payment
Principal
The portion that reduces your loan balance. Starts small and grows over time as you pay down the loan (amortization).
Interest
The cost of borrowing money. Starts high and decreases as you pay down the principal. Even small rate differences add up significantly over 30 years.
Property Taxes
Annual taxes assessed by local government, typically 0.5-2.5% of property value. Usually held in escrow and paid by your lender.
Insurance
Homeowner's insurance protects against damage and liability. Lenders require it as long as you have a mortgage.
What is PMI?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender (not you) if you default. PMI typically costs 0.3-1.5% of the loan amount annually. Once you reach 20% equity, you can usually request to remove PMI.
15-Year vs 30-Year Mortgage
15-Year Mortgage
- • Higher monthly payment
- • Lower interest rate
- • Much less total interest
- • Build equity faster
30-Year Mortgage
- • Lower monthly payment
- • More buying power
- • More total interest
- • Better cash flow flexibility
For Investment Properties
When buying investment properties, your mortgage payment is your "debt service"—a key component in calculating cash flow and cash-on-cash return. Investment property loans typically require 20-25% down and have slightly higher interest rates than primary residence loans.
This calculator provides estimates for informational purposes only. Results depend on the accuracy of your inputs and do not constitute investment, financial, tax, or legal advice. Consult qualified professionals before making investment decisions.