Mortgage Calculator
Calculate your monthly mortgage payment including principal, interest, property taxes, home insurance, PMI, and HOA fees. Our calculator helps you understand the true cost of homeownership and plan your budget accordingly.
Loan Details
Additional Costs
Monthly Payment Breakdown
Scenario Vault
Save multiple versions of your inputs and compare how the outputs change.
Comparison
Current inputs vs. selected scenario.
Understanding Your Mortgage Payment
Principal & Interest
The principal is the amount you borrow, and interest is what you pay the lender for borrowing that money. Together, these make up the base of your mortgage payment. Early in your loan, most of your payment goes toward interest, but over time, more goes toward principal.
Property Taxes
Property taxes are assessed by your local government and typically range from 0.5% to 2% of your home's value annually. These are usually collected monthly by your lender and held in escrow until the annual tax bill is due.
Homeowners Insurance
Lenders require homeowners insurance to protect their investment. This covers damage from fires, storms, theft, and other disasters. The cost varies based on your home's value, location, and coverage amount.
PMI (Private Mortgage Insurance)
If your down payment is less than 20%, you'll typically need PMI. This protects the lender if you default on the loan. Once you've built up 20% equity in your home, you can usually request to have PMI removed, lowering your monthly payment.
How Mortgage Calculations Work
Mortgage payments are calculated using an amortization formula that ensures you pay off both principal and interest over the loan term. The formula accounts for:
- Loan Amount: Home price minus down payment
- Interest Rate: Annual rate divided by 12 for monthly calculations
- Loan Term: Total number of monthly payments (e.g., 360 for 30 years)
- Additional Costs: Taxes, insurance, PMI, and fees added to base payment