$1,769.79
$2,161.46
$357,124.57
$778,124.57
$280,000.00
$1,769.79
$2,161.46
$357,124.57
$778,124.57
$280,000.00
The Mortgage Payment Calculator helps you determine your monthly mortgage payment based on the home price, down payment, loan term, and interest rate. Understanding your monthly obligation before purchasing a home is one of the most critical steps in the home-buying process, and this calculator provides a comprehensive breakdown of all costs involved.
A mortgage is a secured loan used to purchase real estate, where the property itself serves as collateral. Most mortgages in the United States are fixed-rate loans with terms of 15 or 30 years, though adjustable-rate mortgages (ARMs) and other structures are also available. The monthly payment consists of principal (the amount that reduces your loan balance) and interest (the cost of borrowing money).
Beyond the basic principal and interest (P&I) payment, homeowners must also budget for property taxes, homeowner's insurance, and potentially private mortgage insurance (PMI) if the down payment is less than 20%. Together, these components are often referred to as PITI — Principal, Interest, Taxes, and Insurance — which represents the true monthly housing cost.
This calculator uses the standard amortization formula used by all major lenders in the United States. The formula calculates equal monthly payments over the life of the loan, with each payment split between interest and principal. Early payments are mostly interest, while later payments are mostly principal — this is the nature of amortized loans. By adjusting the inputs, you can see how different down payments, interest rates, and loan terms affect your monthly budget and total cost of homeownership.
Interest rates are determined by a combination of factors including the Federal Reserve's benchmark rate, your credit score, down payment amount, loan type, and market conditions. Even a small difference in interest rate — say 0.25% — can result in thousands of dollars saved or spent over the life of a 30-year mortgage. Use this calculator to compare different scenarios and find the optimal combination for your financial situation.
The monthly mortgage payment is calculated using the standard amortization formula:
M = P × [r(1 + r)n] / [(1 + r)n − 1]
Where:
The total monthly payment includes P&I plus property tax (annual ÷ 12), homeowner's insurance (annual ÷ 12), and PMI if applicable (loan amount × PMI rate ÷ 12). Total interest paid equals total payments minus the original loan amount.
Your monthly P&I payment represents the core mortgage cost. The total monthly payment (PITI) is what you should budget for. If your down payment is less than 20%, PMI is added until you reach 20% equity. A lower interest rate or shorter term dramatically reduces total interest paid, though it increases the monthly payment. Lenders generally recommend that total housing costs not exceed 28% of your gross monthly income.
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Results
A $350,000 home with 20% down at 6.5% over 30 years results in $1,769.84/month P&I.
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Results
A 15-year mortgage has higher payments but dramatically less total interest.
A typical payment includes principal (loan balance reduction), interest (borrowing cost), property taxes, homeowner's insurance, and PMI if applicable. This is known as PITI.
Conventional loans typically require 3-20% down. FHA loans require 3.5%, VA and USDA loans may require 0% down. A 20% down payment avoids PMI.
Private Mortgage Insurance protects the lender if you default. It's required when your down payment is less than 20% on conventional loans. PMI typically costs 0.5-1% of the loan amount annually.
Each 1% increase in rate raises the monthly payment by roughly $60-70 per $100,000 borrowed on a 30-year loan. On a $300,000 loan, going from 6% to 7% adds about $200/month.
A 15-year mortgage has higher monthly payments but much lower total interest (often 50-60% less). A 30-year mortgage offers lower monthly payments and more flexibility. Choose based on your budget and goals.
Conventional loans typically require 620+, FHA loans 580+ (3.5% down) or 500+ (10% down). Higher scores qualify for better rates. A score of 740+ typically gets the best rates.
Most mortgages allow prepayment without penalty. Extra principal payments can save tens of thousands in interest. Even small additional payments make a significant difference over time.
An escrow account holds funds for property taxes and insurance. Your lender collects a portion with each mortgage payment and pays these bills on your behalf. Most lenders require escrow for loans with less than 20% down.
A common guideline is the 28/36 rule: spend no more than 28% of gross income on housing costs and no more than 36% on total debt. This means if you earn $6,000/month, aim for housing costs under $1,680.
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other costs like origination fees, points, and mortgage insurance, giving a more complete cost picture.
Roboculator Team
The Roboculator Team explains calculations, planning tools, and practical formulas in clear language for real-life situations.
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