Mortgage Calculator
Calculate monthly mortgage payments, total interest, PMI, taxes, and insurance costs
Mortgage Details
The total purchase price of the home
The annual interest rate for the mortgage
How often you will make mortgage payments
Additional Costs (Optional)
Homeowners Association fees (if applicable)
Additional monthly costs (utilities, maintenance, etc.)
Example Calculations
30-Year Fixed Mortgage Example
Home Value: $400,000
Down Payment: $80,000 (20%)
Loan Amount: $320,000
Interest Rate: 6.5% annually
Term: 30 years (360 monthly payments)
Monthly P&I Payment: $2,021.57
Total Interest: $407,765.17
Total Cost: $727,765.17
15-Year Fixed Mortgage Example
Home Value: $300,000
Down Payment: $60,000 (20%)
Loan Amount: $240,000
Interest Rate: 6.0% annually
Term: 15 years (180 monthly payments)
Monthly P&I Payment: $2,024.82
Total Interest: $124,467.84
Total Cost: $364,467.84
Mortgage Payment Formula
Standard Mortgage Payment Formula
MP = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where:
- • MP = Monthly payment (principal and interest)
- • P = Principal loan amount
- • r = Monthly interest rate (annual rate ÷ 12)
- • n = Total number of monthly payments
Total Monthly Payment Components
Your total monthly payment typically includes:
- • Principal & Interest (P&I): Calculated using the formula above
- • Property Taxes: Annual tax ÷ 12 months
- • Homeowners Insurance: Annual premium ÷ 12 months
- • PMI: Required if down payment < 20%
- • HOA Fees: Homeowners association dues
Mortgage Tips
A 20% down payment eliminates PMI and reduces monthly payments
15-year mortgages have higher payments but save significant interest
Factor in property taxes, insurance, and maintenance costs
Shop around and compare rates from multiple lenders
LTV Ratio Guide
80% or Less
No PMI required, best rates
81% - 90%
PMI required, good rates
91% - 95%
Higher PMI, standard rates
Above 95%
Highest PMI, limited options
Understanding Mortgage Calculations
How Mortgage Payments Work
Mortgage payments are structured as amortizing loans, where each payment includes both principal and interest. Early payments consist mostly of interest, while later payments pay down more principal.
Key Mortgage Components
- •Principal: The amount you borrow to purchase the home
- •Interest: The cost of borrowing money, expressed as an annual percentage
- •PMI: Required insurance when down payment is less than 20%
- •Escrow: Property taxes and insurance held by the lender
Types of Mortgage Costs
Property Taxes
Annual taxes on your property, typically 0.5% to 2.5% of home value. Collected monthly in escrow.
Homeowners Insurance
Required coverage protecting your home and belongings. Typically 0.3% to 1.5% of home value annually.
Private Mortgage Insurance (PMI)
Insurance protecting the lender if you default. Required when LTV > 80%, typically 0.3% to 1.5% annually.
Important: This calculator provides estimates based on typical scenarios. Actual mortgage terms and costs may vary. Consult with mortgage professionals for precise calculations.