Mortgage Payment Calculator
Calculate your monthly mortgage payment including principal, interest, taxes, and insurance
About This Calculator
The Mortgage Payment Calculator helps you estimate your monthly mortgage payment including principal and interest. This tool is essential for homebuyers to understand their monthly housing costs and plan their budget accordingly.
How It Works
- 1
Enter the total loan amount you plan to borrow from the lender.
- 2
Input your down payment amount, which reduces the principal loan amount.
- 3
Provide the annual interest rate as a percentage (e.g., 6.5 for 6.5%).
- 4
Select your loan term - typically 15 or 30 years for mortgages.
- 5
The calculator computes your monthly payment using the standard amortization formula, including principal and interest.
Formula Explanation
M = P × [r(1+r)^n] / [(1+r)^n - 1]Where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). This formula calculates the fixed monthly payment needed to pay off the loan over the specified term.
Tips
A larger down payment reduces your monthly payment and total interest paid.
Consider property taxes, insurance, and HOA fees separately as they vary by location.
Compare 15-year vs 30-year terms - shorter terms save interest but have higher monthly payments.
Use this calculator to determine how much house you can afford based on your budget.
Common Uses
Home Buying Planning
Estimate monthly mortgage payments before house hunting to set a realistic budget.
Refinancing Analysis
Compare current mortgage payments with potential refinancing options.
Down Payment Planning
Determine how different down payment amounts affect your monthly payment.
Loan Term Comparison
Compare 15-year and 30-year mortgage terms to find the best fit.